Hansen breaks $1 billion in sales in 2007

CORONA, Calif.–(BUSINESS WIRE)–Hansen Natural Corporation (NASDAQ:HANS) today reported record sales and profits for the fourth quarter and year ended December 31, 2007.


Gross sales for the fourth quarter increased 61.5 percent to $277.3 million, from $171.7 million a year earlier. Net sales for the fourth quarter increased 63.0 percent to $246.6 million from $151.3 million a year ago.


Gross profit as a percentage of net sales for the 2007 fourth quarter decreased to 51.0 percent, from 53.1 percent in the comparable 2006 quarter.


Operating income for the fourth quarter increased 81.1 percent to $64.6 million from $35.7 million a year ago. Operating income for the fourth quarter, excluding the identified items described below, increased 49.7 percent to $63.1 million from $42.1 million a year ago. The Company reported an effective tax rate for the fourth quarter of 33.3 percent compared to 39.5 percent last year.


Net income for the 2007 fourth quarter increased 103.1 percent to $45.1 million, or $0.45 per diluted share, from $22.2 million, or $0.23 per diluted share last year.


Gross sales for the year ended December 31, 2007 increased 47.3 percent to $1,025.8 million from $696.3 million a year earlier. Net sales for the year ended December 31, 2007 increased 49.3 percent to $904.5 million from $605.8 million a year ago.


Gross profit as a percentage of net sales was 51.7 percent for 2007, compared with 52.3 percent for 2006.


Operating income for the year ended December 31, 2007 increased 45.7 percent to $231.0 million from $158.6 million a year ago. Operating income for the year ended December 31, 2007, excluding the identified items described below, increased 45.5 percent to $254.1 million from $174.6 million a year ago. The Company reported an effective tax rate for the year of 37.7 percent compared to 39.6 percent last year.


Net income for the year ended December 31, 2007 increased 52.5 percent to $149.4 million, or $1.51 per diluted share, from $97.9 million, or $0.99 per diluted share, last year.


Rodney C. Sacks, chairman and chief executive officer, said that the record revenues reflected continued strong sales of Monster Energy® brand energy drinks as well as the Java Monster line of non-carbonated dairy based coffee drinks (introduced in April 2007) and Monster M-80 energy (introduced in March 2007). We are excited by the launch in December 2007 of the five new Java Monster line extensions as well as the launch of our new Monster Heavy Metal (introduced in November 2007) and Monster MIXXD (introduced in December 2007). We are extremely pleased by the reception both from the trade and consumers to our new line extensions.


The energy category continues to show strong growth and the Monster Energy® brand continues to grow in excess of the overall category growth, Sacks said. Also, Mr. Sacks noted that fourth quarter sales benefited from purchases made by customers in anticipation of the price increase, effective January 1, 2008, in both the 16-ounce Monster Energy® and the Java Monster lines.