Summary
Hansen Natural Corporation (now Monster Beverage Corp.) reported strong third-quarter and year-to-date financial results for the period ending September 30, 2009. Net sales increased by 8.1% to $307.9 million for the quarter and by 9.4% to $852.4 million for the nine months, driven primarily by the continued strength of the Monster Energy® brand and new product introductions. Gross profit margin improved to 53.6% for both periods, reflecting favorable product mix and lower raw material costs. Operating income saw a significant increase of 13.6% for the quarter and 24.0% for the nine months, signaling effective cost management and sales growth. The company's financial health remains robust with $317.7 million in cash and cash equivalents at the end of the period. Despite some challenges with auction rate securities, the overall liquidity position is strong. Management expressed confidence in their ability to fund ongoing operations, capital expenditures, and potential share repurchases. The company is actively managing legal proceedings and notes that while they believe they have meritorious defenses, the outcomes of several significant lawsuits remain uncertain.
Financial Highlights
25 data points| Revenue | $307.93M |
| Cost of Revenue | $142.90M |
| Gross Profit | $165.03M |
| Operating Expenses | $72.12M |
| Operating Income | $92.92M |
| Net Income | $56.51M |
| EPS (Basic) | $0.05 |
| EPS (Diluted) | $0.05 |
| Shares Outstanding (Basic) | 1.08B |
| Shares Outstanding (Diluted) | 1.14B |
Key Highlights
- 1Net sales increased by 8.1% to $307.9 million in Q3 2009 and 9.4% to $852.4 million year-to-date, driven by strong Monster Energy® sales and new products.
- 2Gross profit margin improved to 53.6% for both Q3 and YTD 2009, attributed to favorable sales mix and reduced raw material costs.
- 3Operating income increased by 13.6% to $92.9 million in Q3 and 24.0% to $251.5 million YTD, demonstrating operational efficiency.
- 4The company maintained a strong liquidity position with $317.7 million in cash and cash equivalents as of September 30, 2009.
- 5The DSD segment continues to dominate, accounting for over 90% of net sales.
- 6The company is actively managing several ongoing litigation matters, including securities and derivative lawsuits, but maintains a belief in their defenses.
- 7International sales showed significant growth, reaching 13.4% of net sales for the quarter and 11.9% for the nine months.