Reuters: Global Markets: Monster Beverage profit falls 17 percent, shares slip

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Monster Beverage profit falls 17 percent, shares slip May 8th 2013, 21:16 Wed May 8, 2013 5:16pm EDT (Reuters) - Monster Beverage Corp (MNST.O) reported a 17 percent fall in quarterly profit due to higher operating expenses and costs related to distributor terminations and foreign currency transactions. Shares of the company fell 9 percent to $51.75 after the bell. The energy drink maker, formerly known as Hansen Natural, earned $63.5 million, or 37 cents per share, in the first-quarter, down from $76.1 million, or 41 cents per share, a year earlier. Sales rose 7 percent to $484.2 million. Operating expenses jumped 26 percent to $144.7 million. Analysts on average expected a profit of 46 cents per share on revenue of $501.74 million, according to Thomson Reuters I/B/E/S. Energy drinks in general have come under review due to health concerns about high concentrations of caffeine and other ingredients. U.S. health regulators are investigating reports of five deaths that may be associated with the Monster energy drink. Monster said it incurred costs of $8.3 million related to the termination of certain distributors, and foreign currency transaction losses of $4.7 million primarily related to its operations in Japan and South Africa. Gross profit margin fell to 52.1 percent in the quarter from 53.2 percent a year earlier. (Reporting by Aditi Shrivastava in Bangalore; Editing by Roshni Menon) Link this Share this Digg this Email Reprints

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