Summary
Hansen Natural Corporation, operating as Monster Beverage, reported strong revenue growth in its 2009 10-K filing, driven primarily by its DSD (Direct Store Delivery) segment, which accounts for the vast majority of sales and is dominated by its Monster Energy drinks. The company continued to expand its product portfolio in 2009, introducing several new flavors and product lines, including variations of Monster Energy, Java Monster, and Hansen's natural beverages. Despite a challenging economic environment, Hansen Natural Corporation demonstrated resilience, with net sales increasing by 10.6% to $1.14 billion. This growth was supported by strategic distribution agreements with major players like The Coca-Cola Company (TCCC) and Anheuser-Busch (AB), expanding its reach both domestically and internationally. However, the company faces significant competition and regulatory scrutiny, particularly concerning the health implications of energy drinks. Key risks include shifts in consumer preferences, potential new taxes or regulations, and reliance on a few major distributors and suppliers. Despite these challenges, the company's focus on innovation, brand building, and expanding its distribution network positions it for continued growth in the alternative beverage market.
Financial Highlights
47 data points| Revenue | $1.14B |
| Cost of Revenue | $530.98M |
| Gross Profit | $612.32M |
| Operating Expenses | $275.01M |
| Operating Income | $337.31M |
| Net Income | $208.72M |
| EPS (Basic) | $0.19 |
| EPS (Diluted) | $0.18 |
| Shares Outstanding (Basic) | 1.08B |
| Shares Outstanding (Diluted) | 1.14B |
Key Highlights
- 1Net sales increased by 10.6% to $1.14 billion in 2009, driven by the core Monster Energy brand and expansion into new products.
- 2The Direct Store Delivery (DSD) segment, primarily energy drinks, constituted 91.9% of net sales, underscoring its strategic importance.
- 3The company introduced several new products in 2009, including Monster Energy Import, Nitrous Monster Energy, and Hansen's Natural Lo-Cal, demonstrating a commitment to innovation.
- 4Strategic distribution agreements with The Coca-Cola Company and Anheuser-Busch continued to facilitate domestic and international market penetration.
- 5Gross profit margin improved to 53.6% in 2009, up from 52.1% in 2008, indicating operational efficiency and favorable cost management.
- 6The company significantly reduced operating expenses, notably due to lower distributor termination costs in 2009 compared to 2008, which boosted operating income by 106.2%.
- 7International sales grew to 12.8% of gross sales in 2009, reflecting successful expansion efforts beyond the domestic market.