In the latest financial disclosure, Monster Beverage reported a decline in profits and sales, failing to meet Wall Street expectations due to a noticeable dip in consumer demand.
During the third quarter, Monster Beverage’s net sales reached £1.45 billion ($1.88 billion), marginally below the analyst forecast of £1.47 billion ($1.91 billion), as compiled by LSEG for Reuters.
The adjusted profit per share stood at 40 cents, falling short of the predicted 43 cents. Consequently, shares of Monster Beverage saw a 3% decrease on Thursday.
This decline comes amidst a broader consumer behaviour shift, influenced by the ongoing cost-of-living crisis, which sees many opting for more economical, non-branded alternatives.
Meanwhile, Coca-Cola Europacific Partners managed a modest sales increase in their third quarter, with a 2.4% rise in adjusted comparable sales to £4.50 billion (€5.36 billion) despite facing similar weak demand and adverse weather conditions.
Coca-Cola Europacific Partners’ Chief Executive, Damian Gammell, described their year as “solid,” yet acknowledged the challenge of decreased volumes in Europe due to consumer demand fluctuations and weather-related issues.
The financial underperformance of Monster Beverage underscores the shifts in consumer preferences as economic challenges mount, prompting consumers to reconsider their purchasing decisions and lean towards more affordable options.
