Hansen Natural Corp.'s (HANS) second-quarter profit grew 14% as
the all-natural soda and juice maker reported higher sales led by
its Monster Energy drink and improved margins.
Following the results, shares were up 7.6% to $33 in after-hours
trading. The shares have lost about half their value from the
all-time high in 2007.
The earnings results were in line with Wall Street expectations,
although revenue came in a bit under expectations as consumers have
tightened their budgets, leading some to replace their consumption
of soda and energy drinks with tap water.
But Chairman and Chief Executive Rodney C. Sacks said Thursday
the results come at a time when the North American beverage market,
which is Hansen's primary market, is suffering in almost all
categories.
Hansen Natural reported earnings of $57.3 million, or 60 cents a
share, up from $50.2 million, or 51 cents a share, a year earlier.
Net sales improved 6.4% to $300.2 million.
Analysts polled by Thomson Reuters expected per-share earnings
of 60 cents on revenue of $309 million.
Gross margin jumped to 53.9% from 51.8%.
Case sales, in 192-ounce equivalents, rose 1.9%. Average net
sales price per case grew 4.4%.
Hansen's products include soda, juice, energy and tea beverages
under its namesake line. It has long been seen as a potential
acquisition target, with Coca-Cola Enterprises Inc. (CCE) often
named as a possible acquirer.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com