Monster Beverage Corporation posted profit and revenue increases that were better than had been expected due to distribution improvements through its current agreement with Coca-Cola, which owns close to 17% of the maker of energy drinks.
Shares increased 12.6% to reach $114.20, which wiped out the majority of losses for the year and is down only 3.3% in 2016.
Monster grappled during the most recent quarters due to disruptions because of changing the company in charge of putting its products on shelves at stores.
Coca-Cola paid over $2.15 billion during 2014 to acquire its stake of 16.7% in Monster as part of a swap in assets in which the company became a preferred distributor of the drink.
During the first quarter of 2015, the company recorded a charge of $106 million from the termination of its previous agreement over distribution.
CEO Rodney Sacks announced that he was seeing improvements in its levels of distribution by Coke. He added that Monster reached agreements with many other international bottlers of Coke.
Monster energy drinks is to begin sales in Australia as well as New Zealand during May thanks to an agreement reached with Coca-Cola Amatil.
However, the CEO said results continued to be hurt by the transitions in distribution and by uncertainties in the distribution network internationally that did not have anything to do with Coca-Cola.
Overall, Monster reported a $168.9 million profit equal to 79 cents per share, which was up from last year during the same period of $4.4 million equal to 3 cents per share.
Excluding the deal for distribution written down during quarter one year ago and other special items, profit per share increased from 64 cents to 80 cents.
Revenue at Monster ended the quarter at $860.2 million, which represented an increase of 8.5%.
Analysts were projecting 74 cents per share adjusted profit with revenue of just of $657 million.
On Friday, Monster said it was buying as much as $2 billion of its outstanding shares through a Dutch auction modified tender offer, which is a move that is consistent with the previously announced company plan of returning capital to its shareholders.