CORONA, Calif., Mar 29, 2004 (BUSINESS WIRE) -- Hansen Natural Corporation (Nasdaq:HANS) today announced its financial results, including record sales and profits for the year and fourth quarter ended December 31, 2003.
For the 2003 year, gross sales rose 19.9 percent to $138.5 million from $115.5 million in 2002. Net sales for the same period also increased 19.9 percent to $110.4 million from $92.0 million in the prior year. Operating income grew 85.6 percent to $9.8 million compared with $5.3 million a year ago. Net income was up 95.8 percent to $5.9 million, or $0.55 per diluted share, from $3.0 million, or $0.29 per diluted share, a year ago.
Rodney C. Sacks, chairman and chief executive officer, noted that the record sales and profits for 2003 reflect the strong performance of the Monster Energy(TM) drink in 16-ounce cans, which was introduced in 2002, as well as solid demand for Hansen's natural sodas, energy Deuce drinks, Junior Juice(R) and apple juice. He added that the increase in sales was partially offset by lower sales primarily of energy drinks in 8.3-ounce cans, Smoothies, Energade(R) energy sports drinks and teas, lemonades and juice cocktails.
Gross profit as a percentage of net sales for the year was 39.7 percent, up from 36.1 percent in 2002. Selling, general and administrative expenses as a percentage of net sales were slightly higher than in the previous year, primarily due to higher payroll, distribution expenses, trade development activities, sponsorships, merchandise displays and in-store demonstrations.
For the 2003 fourth quarter, gross sales rose 27.9 percent to $33.1 million from $25.9 million a year earlier. Net sales increased 31.5 percent to $26.6 million from $20.2 million in 2002. Operating income increased to $1.9 million from $149,000 a year ago. Net income increased to $1.2 million, or $0.11 per diluted share, from $77,000, or $0.01 per diluted share, in the comparable period in 2002.
The increase in net income for the fourth quarter compared with the prior year period was primarily attributable to the substantial increase in sales of Monster Energy(TM) drinks.
Sacks also noted that the company is currently launching a new energy drink in a 16-ounce can under the 'Lost'(R) brand name.
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 and Lost(R) Energy(TM) brand energy drinks. The company's subsidiary Hard e Beverage Co. markets and distributes Hard e malt beverages. 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.