August 7/BMI Americas Food and Drink Insights -- Energy drink producer Hansen Natural has justified its strong valuation by posting quarterly results better than analysts' expectations. For Q2, Hansen's net sales grew by 21.8% year-on-year to $365.7 million, while net earnings increased by 11% to $63.8 million. The firm's results were boosted by strong growth outside the U.S., with international sales increasing by 69% to $66.6 million. Hansen trades with a price-to-earnings ratio at the top end of the soft drinks sector and is even valued higher than rapidly growing emerging market businesses such as Coca-Cola Femsa . This valuation stems from the firm's huge growth potential, and with the international rollout helping to support this growth, this valuation looks increasingly justified.
Hansen's flagship product, the Monster energy drink, delivered resilient growth during the downturn, and the company's results have set it apart from the wider soft drinks sector. The sector has suffered as consumers cut back on consumption of carbonated soft drinks, due to health concerns and generally reduced spending on discretionary items during the economic downturn. This strength can be attributed to the popularity of Monster, which is in a high-growth category and gaining market share.