Monster Beverage Posts Higher Adjusted Earnings
August 04 2016 - 6:10PM
Dow Jones News
Monster Beverage Corp. posted higher adjusted earnings in the
second quarter as net sales rose 19% and the energy-drink maker saw
improvements in its U.S. distribution levels.
Bottom-line profit fell 20%, reflecting several one-items,
including a 2015 gain on the sale of the company's non-energy drink
brands.
In June 2015, Coca-Cola Co. paid $2.15 billion to buy a 16.7%
stake in Monster as part of an asset swap in which it also became
Monster's preferred distributor. Issues related to the distribution
transition have weighed on Monster's results since then.
Monster said Thursday that the Coke agreement has fared well in
markets such as Mexico but there are still some uncertainties at
international non-Coca-Cola distribution networks.
Monster authorized the repurchase of up to $250 million of
stock, another capital-return move following a recent $2 billion
modified "Dutch auction" tender offer.
For the quarter ended June 30, net income was $184.2 million, or
90 cents a share, down from $229 million, or $1.26 a share, a year
earlier. Earnings excluding items rose to 99 cents a share from 79
cents. Net sales rose to $827.5 million from $693.7 million.
Analysts polled by Thomson Reuters had projected adjusted profit
of $1.03 a share on $804 million in revenue.
In April, Monster bought American Fruits & Flavors in a $690
million deal that brought its primary flavor supplier in-house.
Shares rose 1.2%, to $160.50, in after-hours trading.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
August 04, 2016 17:55 ET (21:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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