Higher costs shrank the profit of Monster Beverage with 2.7%

The profit of the US company Monster Beverage Corp for the second quarter of 2013 decreased by 2.7% due to costs of 4.5 million USD related to litigation and trouble with regulators who claim that production of its energy drinks pose a risk to human health. The quarterly results suffered from shock and loss of 3.6 million USD from exchange rate differences, mostly related to the company's operations in Australia, Japan and South Africa. The company earned 106.9 million USD in April-June compared to 109.8 million USD in the second quarter of 2012, earnings per share, however, increased to 62 cents from 59 cents due to fewer shares outstanding. The revenue rose 6.5% to 630.9 million USD, while sales volume has expanded by 7.1%. The gross margin increased to 53.3% from 51.8% an year earlier. The analysts polled by Reuters expected earnings per share of 64 cents on revenue of 646 million USD.

The sales of the drink Monster Energy continues to rise despite the scrutiny to which the company is exposed by regulators and negative public attitudes towards energy drinks at all in recent months. But momentum has slowed.

"Stick to its plans to launch the Monster Energy brand new international markets", said Chairman of the Board and Chief Executive Officer of Monster Beverage Rodney Sacks. "We repeat once again that our energy drinks are safe, basing itself on continuous observations in the field, and the scientific evidence supporting the safety of our constituents", he added.