CORONA, Calif.—Hansen Natural Corp. (NASDAQ:HANS) continued to ride Monster brand beverage sales to increased results for its third quarter (3Q). Net sales for the quarter increased to $247.2 million, up 38.4 percent from $178.6 million a year ago. Net income rose 73.1 percent to $45.8 million, or $0.46 per diluted share, from $26.5 million, or $0.27 per diluted share, in the same period last year.
Rodney C. Sacks, chairman and CEO, said the record revenues reflected continued strong sales of Monster Energy brand energy drinks, as well as certain new products such as the Java Monster line of non-carbonated dairy based coffee drinks (introduced in April 2007) and Monster M-80 energy drinks (introduced in March 2007). "The energy category continues to show strong growth over the prior year, and the Monster Energy brand continued to increase its market share. In particular, sales of our Java Monster line of non-carbonated dairy based coffee drinks have exceeded our expectations," he said.
The 3Q was not without its challenges. In transitioning certain distribution arrangements, the company (Hansens.com) incurred termination costs amounting to $0.3 million and $9.5 million during 3Q07 and 3Q06, respectively, to certain of its prior distributors, who have been replaced by newly appointed Anheuser-Busch distributors.
Further, despite the overall gains, Wall Street expected more, and HANS stock fell about $13 following the release of 3Q results. Revenues were about $11 million under expectations, and net income was $0.03 lower than anticipated.
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