Hansen Posts Record Sales

Hansen Posts Record Sales

CORONA, Calif.--Hansen Natural Corp. (NASDAQ:HANS) reported March 13 that for its fiscal year (FY01), ended Dec. 31, the company had record sales; however, due to start-up costs and dismal performances in some of its product lines, the company posted lower profits for the year.

Net sales for the year increased 16 percent to $92.3 million from $79.7 million reported in the year prior. Gross margin dipped slightly to 44.2 percent of sales compared to the previous year's 46.5 percent, while operating expenses increased to $34.8 million. Between increased cost of sales and expenses, net income was reduced to $3.0 million, or $.30 per share earned, compared to $3.9 million, or $.39 per share earned.

The sales record for 2001 was achieved primarily through the growth of the company's natural sodas, energy drinks in 8.3-oz. cans and apple juice, as well as its newly launched Energade and E20 Energy Water brands. In addition, the May 2001 acquisition of Junior Juice added to the company's ground-breaking revenues.

However, the bottom line was affected by start-up costs and expenditures incurred by the company's new food and specialty division. Also, nutrition bars and cereal sales were below company expectations. The launch of Medicine Man during 2001 was "disappointing" and the line is currently being re-evaluated. The Health Start™/Silver Foxes juice lines will be discontinued. To offset this, the company plans to launch a Sparkling Lemonade and Orangeade line, as well as a Soy Smoothie line in aseptic packaging.

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