(Reuters) – Monster Beverage (NASDAQ:MNST) missed Wall Street estimates for third-quarter sales and profit on Thursday, as cost-conscious consumers cut back spending on its higher-priced beverages.
Shares of the company were down about 3% after the bell.
Consumers, especially from low to middle-income groups, have been curbing their cravings for branded non-alcoholic drinks and opting for cheaper alternatives.
This has hurt sales of companies like Monster Beverage, Keurig Dr Pepper (NASDAQ:KDP) and PepsiCo (NASDAQ:PEP), while Coca-Cola (NYSE:KO) was able to attract customers with tight budgets in the United States.
For the third-quarter, the company posted net sales of $1.88 billion, compared with analysts’ average estimate of $1.91 billion, according to data compiled by LSEG.
On an adjusted basis, it posted profit of 40 cents per share, compared with estimates of 43 cents per share.
“Hurricanes Helene and Milton impacted sales at retail in certain states in September and October, however we cannot determine the impact on our business,” said CEO Hilton Schlosberg.
However, benefits from taking 5% price hikes during the quarter ended Sept. 30, coupled with lower input costs helped the company’s margins.
Monster’s quarterly gross profit as a percentage of sales was 53.2%, compared to 53.0% a year ago.