Gross sales for the 2009 first quarter increased 14.3% to $278.9m from $244m in the same period last year. Net sales for the first three months of 2009 increased 15.1% to $244.2m from $212.2m in the same period last year. Both gross and net sales for the 2008 first quarter were impacted by purchases made by customers in the 2007 fourth quarter in advance of the price increase effective 1 January 2008, for Monster Energy brand energy drinks in 16oz cans and for the Java Monster line of non-carbonated, dairy-based coffee drinks.
The company estimates that approximately 8-9% of 2008 first-quarter gross and net sales were reduced by such purchases made by customers in advance of such price increase. Gross profit as a percentage of net sales was 53.3% for the three months ended 31 March 2009, compared with 49.4% for the comparable 2008 first quarter.
Operating expenses for the 2009 first quarter increased to $64.4m from $61.9m in the same quarter last year. Distribution costs as a percentage of net sales were 4.5% for the 2009 first quarter, compared with 5.7% in the same quarter last year. Selling expenses as a percentage of net sales for the 2009 first quarter were 12.5%, compared with 14.9% in the same quarter a year ago.
Rodney C Sacks, chairman and CEO, attributed the record revenues to sustained strong sales of Monster Energy drinks, which continue to grow in excess of the category, and achieve further gains in market share.
“We remain pleased with the continued strong performance of the Monster Energy brand in the current, challenging economic environment,” said Sacks. “We continue to believe that the moderating growth in the energy drink segment appears, in part, to be due to the existing macro-economic environment as well as the resulting decline in discretionary spending.”
Sacks said that Coca-Cola Enterprises Inc (CCE), other Coca-Cola bottlers and select Anheuser-Busch distributors to whom the Monster Energy brand was transitioned during the fourth quarter of 2008 were, in the main, now performing satisfactorily following the disruptions that occurred during the transitional period.
He added that the company was now beginning to realise the benefits of the new distribution arrangements. Sacks said that the transition to CCE in Canada in January 2009 has been challenging, but, “we’re optimistic that we will start to see improved results in this market during the current quarter”.
Source: Hansen Natural Corporation
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