Don't you just love Hansen Natural (Nasdaq: HANS ) ? While the rest of the world went bonkers and nearly every stock in your portfolio -- and mine -- took a nosedive in 2008, this Rule Breakers recommendation just kept shipping energy drinks. And the drink mixer is still going strong.
In the first quarter of 2009, Hansen rode a bevy of new or expanded distribution deals to monstrous highs. Net sales grew 15% year-over-year, to $244 million, and profit margins expanded across the length of the income statement -- the net margin moved from 13.6% a year ago to 17% today. And when you put growing sales together with wider margins, you get 44% fatter earnings, at $0.44 per share.
Hansen is in the process of expanding its global footprint considerably, invading large new markets from one side of the globe to the other. In Europe, Coca-Cola Enterprises (NYSE: CCE ) -- the bottler, not to be confused with big brother Coca-Cola (NYSE: KO ) -- just started selling Hansen's Monster energy drinks in markets such as France, Sweden, United Kingdom, and the Benelux bloc. A handful of smaller, regional distributors are taking care of Spain, Italy, New Zealand, and Australia. And of course, Anheuser-Busch InBev still handles a hefty chunk of North America.
The great results and CEO Rodney Sacks' comments on how well the international rollout is progressing have energized Hansen's stock, which has been up as much as 12% today, and is in sniffing distance of its 52-week highs.
Hansen is one of the best performers in my own portfolio, though it hasn't quite kept up with the torrid pace set by Intuitive Surgical (Nasdaq: ISRG ) and True Religion Apparel (Nasdaq: TRLG ) in the three years I've held all three of those growth stocks. I believe that Hansen can continue with years of stellar growth, because its No. 1 North American energy drink has yet to make much of a mark in the rest of the world. But as you can see, that effort has started in earnest. And after Europe, I expect Hansen to move into Japan to put up a serious fight with energy drink Pocari Sweat and the ubiquitous Red Bull brand.
This monster charges ahead while others hesitate. I'm in Hansen for the long haul.
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