Brocker.Org: Beverage Companies Release Earnings This Week


Investors anticipated earnings results from soft drinks makers Monster Beverage Corp. (MNST), Coca-Cola European Partners PLC (CCE) and Cott Corp.’s (COT) on Thursday amid an overall weak Q1 for consumer staples leaders.

In April, earnings results from beverage giants Coca Cola Co. (KO) and Dr. Pepper Snapple Group Inc. (DPS) disappointed the Street, while PepsiCo Inc. (PEP) saw growth carried by its “guilt-free” product line targeted at increasingly health-conscious consumers.

Monster Beverage

Energy drinks company Monster Beverage has seen its shares gain about 5.9% on its first-quarter results, trading at a price of $47.56 per share Friday morning. The Corona, Calif.-based global beverage maker, in which Coca-Cola holds an 18% stake, posted a modest earnings beat as seasonal sluggishness dragged down slowed growth rates.

Monster’s adjusted earnings of $0.33 per share beat the Street’s estimates for $0.32, while sales up 9% over last year to $741.1 million almost exactly met analysts’ forecasts for $742.4 million. Monster’s overseas business drove sales, up 28% year over year (YOY), while legacy brands posted a 7.5% sales incline and strategic brands grew 16%. (See also: Monster May Suffer From Delayed Product Launch.)

Coca-Cola European Partners

Multinational bottling company CCE, the world’s largest independent Coca-Cola bottler based on revenue, topped estimates with interim results for the period ended March 31.

The bottler posted earnings of $0.33, above the consensus estimate for $0.32 and compared to year-ago EPS of $0.26. Sales of $2.54 billion were in line with the Street’s forecasts.

Cott Corp.

Cott Corp., a supplier of private label carbonated soft drinks across North America and Europe, reported an adjusted loss in the first quarter of $0.13 per share, worse than last year’s Q1 loss of $0.02, missing consensus of $0.07. Revenue of $896.4 million compared to year-ago sales of $698.4 million, also falling short of the Street’s expectations for $909.8 million.

Shares of the Mississauga, Ontario-based beverage packager and distributor reflect a 13.3% year-to-date (YTD) increase and a 6.1% decline in the 12-month period. (See also: Coke vs. Pepsi Earnings Recap.)