There's still plenty of sparkle in Hansen Natural
The energy-drink blender just reported 6.4% year-over-year sales growth with $300 million in second-quarter revenue. Net income jumped 14%, to $0.60 per share, helped along by gross margins widening by 210 basis points, to 53.9%.
Hansen can thank a more efficient distribution network for these gains. The company has transitioned to using Coca-Cola Enterprises
International efforts are starting to take off, too. "Sales continue to progress well in Continental Europe," Sacks said. "Although we got off to a slow start in the United Kingdom, distribution levels and sales are continuing to improve. Sales in Sweden continue to progress well and Spain is off to a good start." There's even a budding Monster movement Down Under, where Hansen managed to "secure extensive distribution" right from the start.
Competition is heating up from the usual suspects. A new offering from Starbucks
Importantly, there's plenty of room to grow outside Hansen's mainstay American market. Aside from the countries mentioned above, Hansen is about to go into Brazil in a big way. With about 190 million citizens, Brazil is a massive market to secure -- if Hansen plays its cards right. And after Rio and Sao Paulo, I'd like to see Hansen cracking into Japan and the Pacific Rim.
Domestic growth isn't dead, either. Hansen is reaching into entirely new distribution channels now, including Monster displays in Walt Disney
- 4-Star Stocks Poised to Pop: Hansen Natural
- Death by Energy Drink ... or Not
- Top-Rated Stocks Blowing the Doors Off This Market
Hansen Natural is a Motley Fool Rule Breakers pick. Starbucks and Disney are Stock Advisor recommendations. Coca-Cola, Disney, and Starbucks are Inside Value selections. Coca-Cola and PepsiCo are Income Investor picks. The Fool owns shares of Starbucks. Try any of our Foolish newsletters today, free for 30 days.
Fool contributor Anders Bylund owns shares in Hansen, Disney, and Coke, but he holds no other position in any of the companies discussed here. Anders likes his metaphors shaken, not stirred. You can check out Anders' holdings or a concise bio if you like, and The Motley Fool is investors writing for investors.