Hansen Natural Corporation Reports Record Financial Results for 2004

CORONA, Calif., Mar 14, 2005 (BUSINESS WIRE) -- Hansen Natural Corporation (HANS) today announced record sales and profits for the year and fourth quarter ended December 31, 2004.

For the 2004 year, gross sales rose 63.9 percent to $227.0 million from $138.5 million in 2003. Net sales for 2004 increased 63.4 percent to $180.3 million from $110.4 million in the prior year. Operating income grew 244.9 percent in 2004 to $33.9 million from $9.8 million a year ago. Net income advanced 243.8 percent to $20.4 million, or $1.73 per diluted share, from $5.9 million, or $0.55 per diluted share, a year ago.

Rodney C. Sacks, chairman and chief executive officer, said the record sales and profits for 2004 were primarily attributable to substantially increased sales volumes of the company's Monster Energy(R) drinks and Lo-Carb Monster Energy(R) drinks, and to a lesser extent, to sales volumes of Lost(R) energy drinks which were introduced at the beginning of 2004. Increased sales volumes of apple juice and apple grape juice, private label beverages and Energade(R) energy sports drinks also contributed to the record sales. He added that the increase in sales was partially offset by decreased sales volumes primarily of Hansen's energy drinks in 8.3-ounce cans, children's multi-vitamin juice drinks, and teas, lemonades and cocktails.

Gross profit as a percentage of net sales for the year rose to 46.3 percent from 39.7 percent in 2003, primarily due to increased sales of higher margin Monster Energy(TM) and Lost(R) energy drinks. Selling, general and administrative expenses as a percentage of net sales were slightly lower than in the previous year.

For the 2004 fourth quarter, gross sales rose 87.8 percent to $62.1 million from $33.1 million a year earlier. Net sales increased 89.5 percent to $50.3 million from $26.6 million in 2003. Operating income increased to $11.9 million from $1.9 million a year ago. Net income increased to $7.3 million, or $0.61 per diluted share, from $1.2 million, or $0.11 per diluted share, in the comparable period in 2003.

The increase in net income for the fourth quarter compared with the prior year period was primarily attributable to the substantial increase in sales volumes of Monster Energy(TM) drinks.

Sacks also said the company is currently launching a new 100% energy juice in 15.5-ounce cans under the Rumba(TM) brand name. Sales of Monster Energy(TM) "Assault" energy drinks and Monster Energy(TM) drinks in 4-packs, both of which were launched recently, were in line with expectations. He said management was pleased with the ongoing implementation of the WIC contracts.

Hansen Natural Corporation markets and distributes Hansen's(R) Natural Sodas, Signature Sodas, fruit juice and soy Smoothies, Energy drinks, Energade(R) energy sports drinks, E20 Energy Water(R), functional drinks, Sparkling Lemonades and Orangeades, multi-vitamin juice drinks in aseptic packaging, Junior Juice(R) juice, iced teas, lemonades and juice cocktails, apple juice, cider and juice blends, as well as nutrition bars, Blue Sky(R) brand carbonated beverages, Monster Energy(TM) brand energy drinks, Lost(R) Energy(TM) brand energy drinks and Rumba(TM) brand energy drinks. Hansen's can be found on the Web at www.hansens.com.

Certain statements made in this announcement may constitute "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding the expectations of management with respect to revenues and profitability. Management cautions that these statements are qualified by their terms/or important factors, many of which are outside of the control of the company, that could cause actual results and events to differ materially from the statements made herein, including, but not limited to, the following: Changes in consumer preferences, changes in demand that are weather related, particularly in areas outside of California, competitive pricing pressures, changes in the price and/or availability of raw materials for the company's products, the availability of production and/or suitable facilities, the marketing efforts of the distributors of the company's products, most of which distribute products that are competitive with the products of the company, the introduction of new products, as well as unilateral decisions that may be made by grocery chain stores, specialty chain stores, club stores and other customers to discontinue carrying all or any of the company's products that they are carrying at any time. Management further notes that the company's plans and results may be affected by any change in the availability of the company's credit facilities and the actions of its creditors.

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