Hansen Natural Corporation ReportsThird Quarter Results

CORONA, Calif.--(BUSINESS WIRE)--Nov. 9, 2005--Hansen Natural Corporation (Nasdaq:HANS - News) today reported record sales and profits for the third quarter ended September 30, 2005.

Gross sales for the 2005 third quarter increased 88.3% to $126.4 million from $67.1 million a year earlier. Net sales for the third quarter doubled to $105.4 million from $52.6 million a year ago.

Operating income for the 2005 third quarter advanced 238.3% to $33.6 million from $9.9 million a year ago. Net income for the third quarter increased 249.1% to $20.2 million, or $0.83 per diluted share, from $5.8 million, or $0.24 per diluted share, last year.

Gross sales for the nine months ended September 30, 2005 rose 85.9% to $301.8 million from $162.3 million a year earlier. Net sales for the nine months ended September 30, 2005 were up 93.0% to $250.9 million from $130.0 million a year earlier.

Operating income for the nine months ended September 30, 2005 advanced 235.2% to $73.7 million from $22.0 million a year ago. Net income for the first nine months of 2005 increased 239.5% to $44.3 million, or $1.84 per diluted share, from $13.1 million, or $0.56 per diluted share, last year.

Gross profit as a percentage of net sales for the 2005 third quarter increased to 52.5% from 45.2% for the comparable 2004 quarter. Gross profit as a percentage of net sales for the nine months ended September 30, 2005 rose to 52.1% from 45.0% a year ago.

Rodney C. Sacks, chairman and chief executive officer, said, "Our continued exceptional performance reflects the company's growing position in the energy drink market. Consumer demand continues to increase for Monster Energy(TM) drinks, which include Lo-Carb Monster Energy(TM) drinks, Monster Energy(TM) 'Assault'(TM) drinks (introduced in September 2004) and Monster Energy(TM) Khaos drinks (introduced in August 2005). All of these products contributed significantly to the increase in sales."

Sacks said that the net sales increase also reflects higher sales of Lost® energy drinks (introduced in January 2004), along with Hansen's® apple juice and juice blends, sales of Joker(TM) energy drinks (introduced in January 2005), and Rumba(TM) energy juice (introduced in December 2004), as well as increased sales of Hansen's® children's juice drinks in aseptic packaging.

The sales increase was partially off-set by lower sales primarily of smoothies in cans, natural sodas and Hansen's® energy and functional drinks.

Hansen Natural Corporation markets and distributes Hansen's® Natural Sodas, Signature Sodas, fruit juice Smoothies, Energy drinks, Energade® energy sports drinks, E20 Energy Water®, functional drinks, Sparkling Lemonades and Orangeades, multi-vitamin juice drinks in aseptic packaging, Junior Juice® juice, iced teas, lemonades and juice cocktails, apple juice, cider and juice blends, Blue Sky® brand carbonated beverages and Monster Energy(TM) brand, Lost(TM) Energy brand and Joker(TM) Energy brand energy drinks. Hansen 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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