In 2018, the company intends to launch different products in its domestic and international markets for yielding revenue growth. In the second quarter, Monster Beverage depends heavily on the planned launch of Cuba Libre in Japan and Monster Ultra Citron in Korea. The company operates three segments: Monster Energy Drinks, Strategic Brands, and Other.
The company will achieve energy from its drinks including Monster Energy, Monster Hydro, and Mutant Super Soda drinks. In the US, Monster’s non-traditional channels including foodservice, accounts, and e-commerce have been smoothly expanded in the previous quarter. And the company is depending strongly on the continuation of the expansion to yield results.
It is expected that the company will be hurt by headwinds from unfavorable product mix and higher raw material costs, specifically aluminum. The margins remained hurt for this and the next quarter due to these headwinds. The sales of its products are likely to be impacted by better alternatives, a healthy mindset, and a shift in consumer preferences.
In mid-July, the company has promoted Emelie Tirre to President of the Americas and Guy Carling to President of EMEA. Emelie joined the company in 2010, and Guy Carling started in 2007. Also, during May-end, the board of directors of Monster Beverage authorized a new share repurchase program for buyback of up to $500 million of outstanding common stock as there remained no availability balance under the previous program.
Shares of Monster Beverage have fallen more than 5% for the year-to-date, while it has risen by more than 13% for the past year. The stock had been trading between $47.61 and $70.22 for the past 52 weeks.