Hansen Natural Corporation (Nasdaq:HANS) today reported record sales and earnings for the third quarter ended September 30, 2003, reflecting continued strong sales from new product introductions and growth in core beverage lines.
Gross sales for the third quarter increased 23.7% to $42.6 million from $34.5 million a year earlier. Net sales for the third quarter increased 23.4% to $33.3 million from $27.0 million a year ago.
Operating income for the third quarter advanced 61.4% to $3.5 million, from $2.2 million a year ago. Net income for the third quarter increased 64.8% to $2.1 million, equal to $.19 per diluted share, from $1.3 million, or $.12 per diluted share, last year.
Gross sales for the nine months ended September 30, 2003 increased 17.6% to $105.4 million from $89.6 million a year earlier. Net sales for the nine months ended September 30, 2003 increased 16.6% to $83.8 million from $71.8 million a year ago.
Operating income for the nine months ended September 30, 2003 advanced 54.8% to $8.0 million, from $5.1 million a year ago. Net income for the nine months ended September 30, 2003 increased 59.4% to $4.7 million, equal to $.45 per diluted share, from $3.0 million, or $.29 per diluted share, last year.
Rodney C. Sacks, chairman and chief executive officer, said, “Our record sales and profit performance for the third quarter of 2003 reflect the strength of the company’s Monster Energy(TM) drinks and the Hansen’s brand.”
Increased sales of Monster Energy(TM) drinks in 16 oz. cans, natural sodas and Junior Juice(R), as well as sales of Hansen’s(R) energy Deuce drinks in 16 oz. cans were the principal contributors to the increase in sales.
Sacks said the sales increase was partially offset by lower sales of Hansen’s(R) energy drinks in 8.3 oz. cans, smoothies, E2O Energy Water, and Energade(R) energy sports drinks.
Gross profit as a percentage of net sales for the third quarter rose to 39.9% from 35.9% a year ago. Gross profit as a percentage of net sales for the nine months ended September 30, 2003 rose to 39.4% from 36.6% a year ago.
Sacks also noted that sales of the company’s 16 oz. Monster Energy(TM) drinks were continuing to perform well and that management remains optimistic about this product line. He also reported that during the third quarter, the company launched a new low carbohydrate (“low-carb”) Monster Energy(TM) drink in 16 oz. cans as well as a new energy drink under the Hansen’s(R) energy Deuce brand name, also in 16 oz. cans.
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, E2O 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 energy drinks. The company’s subsidiary Hard e Beverage Co. markets and distributes Hard e malt beverages. 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.
CONTACT: Hansen Natural Corporation
Rodney C. Sacks, 909-739-6200
Chairman and Chief Executive Officer
Hilton H. Schlosberg, 909-739-6200
Roger S. Pondel, 323-866-6060