KO Coca Cola Company

Monster Beverage Corp. posted higher adjusted earnings in the second quarter as net sales rose 19% and the energy-drink maker saw improvements in its U.S. distribution levels.

Bottom-line profit fell 20%, reflecting several one-items, including a 2015 gain on the sale of the company's non-energy drink brands.

In June 2015, Coca-Cola Co. paid $2.15 billion to buy a 16.7% stake in Monster as part of an asset swap in which it also became Monster's preferred distributor. Issues related to the distribution transition have weighed on Monster's results since then.

Monster said Thursday that the Coke agreement has fared well in markets such as Mexico but there are still some uncertainties at international non-Coca-Cola distribution networks.

Monster authorized the repurchase of up to $250 million of stock, another capital-return move following a recent $2 billion modified "Dutch auction" tender offer.

For the quarter ended June 30, net income was $184.2 million, or 90 cents a share, down from $229 million, or $1.26 a share, a year earlier. Earnings excluding items rose to 99 cents a share from 79 cents. Net sales rose to $827.5 million from $693.7 million.

Analysts polled by Thomson Reuters had projected adjusted profit of $1.03 a share on $804 million in revenue.

In April, Monster bought American Fruits & Flavors in a $690 million deal that brought its primary flavor supplier in-house.

Shares rose 1.2%, to $160.50, in after-hours trading.

Write to Josh Beckerman at josh.beckerman@wsj.com

(END) Dow Jones Newswires

August 04, 2016 17:55 ET (21:55 GMT)

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