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Monster Energy Drinks Maker Reports Lower Profit Due To Legal Costs

Controversial Energy Drink Maker Reports Big Loss
Reuters
This October 23, 2012 photo illustration shows a variety of Monster Energy drinks in Washington, DC. The US Food and Drug Administration is investigating five deaths and a heart attack for possible links to consumption of Monster Energy drinks, an agency spokeswoman said Tuesday. 'I can verify that FDA has received five adverse event reports of death and one of heart attack possibly associated with Monster Energy drink,' said Shelly Burgess in an email. Burgess cautioned that such reports 'serve as a signal to FDA and do not prove causation between a product or ingredient and an adverse event.' The family of an adolescent, Anais Fournier, who died of an arrhythmia in December 2011, allegedly after drinking two cans of Monster Energy over a 24 hour period, brought suit Friday in California against Monster Beverage. Her parents accused the company of not warning consumers of the potential dangers of its product. AFP PHOTO/Karen BLEIER (Photo credit should read KAREN BLEIER/AFP/Getty Images)
This October 23, 2012 photo illustration shows a variety of Monster Energy drinks in Washington, DC. The US Food and Drug Administration is investigating five deaths and a heart attack for possible links to consumption of Monster Energy drinks, an agency spokeswoman said Tuesday. 'I can verify that FDA has received five adverse event reports of death and one of heart attack possibly associated with Monster Energy drink,' said Shelly Burgess in an email. Burgess cautioned that such reports 'serve as a signal to FDA and do not prove causation between a product or ingredient and an adverse event.' The family of an adolescent, Anais Fournier, who died of an arrhythmia in December 2011, allegedly after drinking two cans of Monster Energy over a 24 hour period, brought suit Friday in California against Monster Beverage. Her parents accused the company of not warning consumers of the potential dangers of its product. AFP PHOTO/Karen BLEIER (Photo credit should read KAREN BLEIER/AFP/Getty Images)

Aug 8 (Reuters) - Energy drinks maker Monster Beverage Corp reported a lower-than-expected quarterly profit, hurt by a stronger dollar and legal costs related to its Monster Energy drinks.

Shares of the company fell 9 percent in post-market trading.

The company, formerly known as Hansen Natural, said profit fell to $106.8 million, or 62 cents per share, from $109.8 million, or 59 cents per share, a year earlier.

Analysts on average were expecting a profit of 64 cents per share, according to Thomson Reuters I/B/E/S.

The company, which started off selling fresh non-pasteurized juices in Los Angeles in the 1930s, said revenue rose 6.6 percent to $723.9 million. (Reporting by Aditi Shrivastava in Bangalore; Editing by Saumyadeb Chakrabarty)

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