CORONA, Calif., Nov 4, 2004 (BUSINESS WIRE) -- Hansen Natural Corporation (HANS) today reported record sales and profits for the third quarter ended September 30, 2004.
Gross sales for the third quarter increased 59.9% to $68.1 million from $42.6 million a year earlier. Net sales for the third quarter increased 58.1% to $52.6 million from $33.3 million a year ago.
Operating income for the third quarter advanced nearly 181.3% to $9.9 million from $3.5 million a year ago. Net income for the third quarter increased to $5.8 million, or $0.49 per diluted share, from $2.1 million, or $0.19 per diluted share, last year.
Gross sales for the nine months ended September 30, 2004 increased 56.5% to $164.9 million from $105.4 million a year earlier. Net sales for the nine months ended September 30, 2004 were up 55.2% to $130.0 million from $83.8 million a year earlier.
Operating income for the nine months ended September 30, 2004 advanced 175.9% to $22.0 million from $8.0 million a year ago. Net income for the nine months ended September 30, 2004 increased 177.6% to $13.1 million, or $1.11 per diluted share, from $4.7 million, or $0.45 per diluted share, last year.
Gross profit as a percentage of net sales for the third quarter increased to 45.2% from 39.9% for the comparable 2003 quarter. Gross profit as a percentage of net sales for the nine months ended September 30, 2004 rose to 45.0% from 39.4% a year ago.
Rodney C. Sacks, chairman and chief executive officer, said, "Our exceptional performance demonstrates the Company's growing position in the energy drink market. Growing consumer demand continues to be experienced for Monster Energy(TM) drinks, as well as Lost(TM) Energy drinks in 16 oz. cans, which were introduced in January 2004. Sales by volume of apple juice and juice blends, following implementation of the California WIC contracts, private label beverages and smoothies in cans also increased during the quarter."
The sales increase was partially off-set by lower sales by volume, primarily of children's multi-vitamin juice drinks in aseptic packaging, natural sodas, Hansen's energy and functional drinks in 8.2 oz. cans, teas, lemonades and juice cocktails, Hansen's E2O Energy water and sparkling beverages.
Sales of natural sodas declined in the quarter due to a promotion undertaken last year with a major customer, which was not repeated. Sales of natural sodas for the nine months ended September 30, 2004 were higher than in the previous year.
Subsequent to the close of the third quarter, the company introduced a new Monster Energy(TM) "Assault" energy drink in 16 oz. cans as well as Monster Energy(TM) drinks in 4-packs. Sacks said initial response from distributors and retailers has been very encouraging.
Hansen Natural Corporation markets and distributes Hansen's(R) Natural Sodas, Signature Sodas, fruit juice 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 and Monster Energy(TM) brand and Lost(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.