Hansen Reports Increased 3Q Sales

Hansen Reports Increased 3Q Sales

CORONA, Calif.--Hansen Natural Corp.(NASDAQ:HANS) postedimproved net sales for its third quarter (3Q01), ended Sept. 30, but because ofincreased marketing costs, its net income slipped slightly. Revenue came in at$26.2 million compared to $22.7 million in the same quarter last year, a15.3-percent increase, and gross margin dropped to 44.5 percent of sales from48.4 percent registered in 3Q00. Operating expenses increased 9.2 percent to$9.5 million this quarter, primarily due to increased promotional allowances.Net profit reflected this slight increase in expenses, posting $1.3 million (or$.13 per share earned) for 3Q01, a 7.8-percent decrease from last year'scomparable quarter earnings of $1.4 million (or $.14 per share earned).

While Hansen's core beverage lines--natural sodas, apple juice and cannedsmoothies--performed well, the company's sales for functional drinks, bottledsmoothies, teas, lemonades, signature sodas and Healthy StartJuices were lower for the quarter. However, the company's September 2000acquisition of Blue Sky Natural Sodas and May 2001 acquisition of the JuniorJuice line benefited the company's bottom line. In addition, Rodney Sacks,chairman and chief executive officer of Hansen, noted that Hansen's newlyintroduced diet sodas and new energy drinks are doing well. He added that thecompany is also in the process of launching premium sodas in proprietary glassbottles and soy smoothies, "both of which have been well-received bycustomers."