US: Hansen Natural reports record results

By Dinushi Wijewardena | 9 May 2008

Hansen Natural Corporation has announced record sales and profits for the first quarter, thanks largely to its Monster Energy and Java Monster soft drinks brands.

The California-based company yesterday (8 May) reported a net sales increase of 27.9% to US$212.2m for the three months to the end of March, up $46.3m from last year, crediting much of its success to strong sales of the Monster Energy range of energy drinks as well as the Java Monster line of non-carbonated dairy-based coffee drinks, introduced in April 2007. Both gross and net sales for the quarter were said to have been impacted by purchases made by customers in the fourth quarter of 2007, however, in advance of the price increase that was made effective in January for Monster Energy and Java Monster.

Operating income increased by 34.2% on the corresponding quarter a year earlier, to $42.8m, while net income leapt by 42.6% to $28.8m.

"Despite the slowdown in general economic activity, the energy drink category continues to show good growth and the Monster Energy brand continues to grow well in excess of the overall category growth,'' said Hansen's chairman and CEO, Rodney Sacks. "The launch of the Monster Energy brand in the UK is proceeding according to plan.''

Sectors: Soft drinks, Water