Soy Smoothies and Monster energy pay off for Hansen

California-based Hansen Natural today reported record sales, with gross revenue rising by 15.8 per cent to $115.5 million for the fiscal year 2002.

Net sales for same period increased 14.1 per cent to $92.0 million.

Operating income for the year ended December 31, 2002 was $5.3 million compared with $5.6 million a year ago. Net income for the same period stayed level with the previous year's figure.

Rodney C. Sacks, chairman and chief executive officer, attributed the strong sales to several of the Hansen product lines, particularly natural sodas, E20 Energy Water, Energade, apple juice, Soy Smoothies and children's multi-vitamin juice drinks, as well as the Monster energy drink.

The sales increase was however partially offset by lower sales of Signature Sodas, smoothies, Hard e, functional drinks (other than energy drinks) in 8.3-oz. slim cans, and teas, lemonades and juice cocktails.

Despite this, the company used the opportunity to announce the launch of a new Diet Red energy drink in 8.3 oz slim cans.

Gross profit as a percentage of net sales for the year was 36.1 per cent, which was slightly higher than in 2001, despite higher promotional payments and allowances, said Hansen​. Expenses were up due to higher distribution expenses, and greater costs for advertising, point of sale materials, merchandise displays and in-store demonstrations.

In the fourth quarter, sales were up 10.2 per cent to $25.9 million from $23.5 million a year earlier, or by 9.8 per cent for net sales. Operating income for the quarter decreased, a result of substantial slotting expenses as well as high coupon costs mainly in connection with Monster energy drinks, according to the company.