US: Hansen Natural sales slip hits shares
Hansen Natural has seen its share price slip by 11% after it emerged that like-for-like sales declined in May, partly due to teething problems in the group's distribution deal for Monster Energy with Coca-Cola Enterprises.
Hansen's share price slipped by $4 to $32 on the NASDAQ stock exchange on Friday (5 June).
The slip followed analyst notes from the firm's annual shareholder meeting, reporting that the group's year-on-year sales fell in May, compared to 12% year-on-year growth in April.
"We believe category softness and disruptions from the transition to the Coke systems in the US, Canada, and UK were mostly to blame," said Stifel Nicolaus analyst Mark Astrachan.
"While we continue to believe International will be a meaningful driver of long-term growth, the noted transition-related disruptions will likely result in less revenue growth than previously thought. Additionally, US performance remains decidedly mixed approximately seven months after the changeover to the Coke system, with sales declines and out-of-stocks in certain key markets," Astrachan said.
Stifel lowered its earnings per share guidance on Hansen for 2009 and 2010, to $2.18 and $2.44 from $2.21 and $2.47 respectively.
Monster Energy helped Hansen to increase net sales by 15% to US$244m for the first three months of 2009, the firm said last month.
However, the firm said that it has faced difficulties transferring Monster to the Coca-Cola Enterprises distribution system, particularly in Canada and the UK.
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