(Bloomberg) -- Monster Beverage Corp. shares fell after growth in the energy-drink maker’s revenue and drink volumes slowed to its worst rate since the start of the Covid-19 pandemic.
Second-quarter revenue grew at the slowest pace since the second quarter of 2020, rising just 2.5% to $1.9 billion and lower than the $2.02 billion that analysts had expected, according to a statement Wednesday. Monster sold 212 million cases in the quarter, below the 215 million average estimate.
Shares of the Corona, California-based company were down 9% at 6:24 p.m. in New York, extending their more than 12% slide since the start of the year as of Wednesday’s close.
Monster’s growth has slowed as its target demographics struggle with rising inflation and interest rates. It also faces fierce competition from Red Bull GmbH, which took market share from Monster in the four weeks leading up to July 20.
“We are a blue-collar brand and our consumers are more hard-pressed than consumers in other categories,” Monster Co-Chief Executive Officer Rodney C. Sacks said on the company’s earnings call.
Rival Celsius Holdings Inc. also said it took market share from Monster in the quarter, though analysts cut price targets for the drink maker after it also posted slowing growth on Tuesday.
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