Monster Beverage has reported a 12% jump in first-quarter sales on resilient demand for the company’s high-priced energy drinks and easing freight costs.
Demand for the company’s drinks – including Monster Energy and Tour Water – held as customers stretched their budgets in the face of inflation.
Consumers have been willing to spend more on at-home snacks and beverages, particularly in North America, as high prices and tight budgets caused people to stay home.
Last month, Keurig Dr Pepper and Coca-Cola reported an upswing in customer demand for their drinks.
Not all companies found price hikes successful, however, as Nestlé and Kraft Heinz saw volumes suffer as they tried to increase profit margins.
For the three months ending 31 March 2024, Monster Beverages posted net sales of $1.90 billion in line with market expectations.
Price hikes undertaken by the company have helped it protect its profit margins from the rising costs of aluminium and sugar.
Gross profit as a percentage of net sales for the first quarter was 54.1%.
This was above 52.8% in the previous year, bolstered by lower input costs.
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