(Reuters) – Monster Beverage Corp beat estimates for third-quarter profit on Thursday, helped by higher pricing for its energy drinks and hard seltzers, sending the company’s shares up about 3% in extended trade.
Monster, like industry leaders Coca-Cola and PepsiCo, has seen demand hold up largely for its beverages, despite a string of price increases.
The company has also seen costs of freight and aluminum cans come down from the pandemic highs, helping boost margins that had remained under pressure for a long time.
Margins for the quarter ended Sept. 30 were up 53% from 51.3%, thanks to price hikes and easing costs of freight and aluminum cans. The company’s adjusted earnings of 41 cents per share beat market expectations by one cent.
Net sales in the Monster Energy drinks segment, that also includes brands such as Reign Storm, rose 13.7%.
However, net sales rose to $1.86 billion for the third quarter from $1.62 billion a year earlier, but slightly missed estimates of $1.87 billion, according to LSEG data.
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(Reporting by Annett Mary Manoj and Juveria Tabassum; Editing by Anil D’Silva)