Monster brand lifts Hansen quarter results
November 6, 2009
by Jeff Gelski
CORONA, CALIF. – Monster Energy drinks continued to grow in sales and gain in market share, helping to lift Hansen Natural Corp. to a net income increase of 7.8% and a net sales increase of 8.1% in the third quarter ended Sept. 30, said Rodney C. Sacks, chairman and chief executive officer.
Third-quarter net income of $56.5 million, or 60c per diluted share, compared to $52.4 million, or 54c per diluted share, in the previous year’s third quarter. Third-quarter net sales of $307.9 million compared to $285 million in the previous year’s third quarter.
“We are encouraged by the positive sales numbers reported by Nielsen for the five weeks ended Sept. 26, 2009, which reflect that energy drink sales both in the important convenience and gas channel, as well as the grocery channel, on a year-to-year comparable basis grew for the first time since March 2009,” Mr. Sacks said.
Mr. Sacks added that Hansen Natural continues to benefit from the transition to certain Coca-Cola bottlers and new Anheuser-Busch distributors at the end of last year. The company’s national market share in the convenience and gas channel has risen since the transition.
In the third quarter, net sales for the company’s direct-store-delivery (D.S.D.) segment increased 9.6% to $282.4 million from $257.7 million in the previous year’s third quarter. Third-quarter net sales for the warehouse segment were $25.6 million, which compared to $27.3 million in the same period in 2008.
Third-quarter gross sales to customers outside the United States, after the inclusion of sales to certain military customers, were $50 million, which compared to $30.7 million in the previous year’s third quarter.
For the nine months ended Sept. 30, 2009, Hansen Natural reported net income of $155.4 million, or $1.63 per diluted share, which compared to $131.5 million, or $1.34 per diluted share, in the same time period of the previous year. Net sales for the nine-month period were $852.4 million, up 9.4% from $779.4 million in the same time period of the previous year.