Monster Beverage Corp. surged the most in almost six months after first-quarter profit topped analysts’ estimates, helped by a distribution deal with Coca-Cola Co. that’s boosting sales.
Profit rose to 80 cents a share, excluding some items, Corona, California-based Monster said Friday in a statement. Analysts estimated 74 cents, on average. Sales increased 8.5 per cent to $680.2 million, beating analysts’ $656.9 million average projection.
Monster’s agreement with Coca-Cola last year has allowed it to expand distribution of its drinks in the U.S. and internationally. The soda giant completed the purchase of a 17 per cent stake in the energy-drink maker for about $2.15 billion in June and agreed to swap some of its brands. Monster transferred all of its US and Canada distribution to bottlers aligned with Coca-Cola and is increasingly making the switch abroad as well.
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In the US, the Coca-Cola bottlers reach more outlets with more beverages, Chief Executive Officer Rodney Sacks said in the statement. Abroad, Monster Energy will be introduced in Australia and New Zealand in May after reaching an agreement with Coca-Cola Amatil.
Monster climbed as much as 14 per cent to $145.88 in New York, the biggest intraday gain since 6 November. The shares had slid 14 per cent this year through Thursday.
News by Bloomberg, edited by Hospitality Ireland