Red Bull Owners Experience Lowest Payout in Four Years Amid Sales Dip and Increased Competition
The owners of Red Bull, the popular energy drink manufacturer, have experienced their lowest payout in four years, according to a recent report by Bloomberg. This year, the company's two groups of shareholders, Mark Mateschitz and the Yoovidhya family in Thailand, received €810 million ($897 million) in dividends and related payments.
Red Bull's Financial Performance
Bloomberg's report indicates that Red Bull's net sales increased by 9% in 2023, reaching €10.6 billion. However, due to escalating costs, the net income growth was limited to just 3.1%, amounting to €1.7 billion, as per the company’s Austrian filings. This represents a significant slowdown from the 20%+ sales growth witnessed in each of the previous two years.
Impact of Red Bull Founder's Passing
This report comes in the first full year following the passing of Red Bull founder Dietrich Mateschitz. His son, Mark, now holds the family’s 49% stake. As per a recent shareholder resolution, the Mateschitz family will not receive a bonus payment for the first time since 2018.
Dividend Distribution and Corporate Policy
Red Bull typically distributes a pro-rata dividend to all shareholders, along with additional payments. Chalerm Yoovidhya, who holds a 2% individual stake, has been receiving €3.2 million annually since 2020, including for 2023. Red Bull adheres to a no-debt policy and is notoriously private about its operations. As a result, corporate filings offer one of the few insights into the company's financial situation.
Bottom Line
The recent financial performance of Red Bull serves as a reminder of the challenges businesses can face in a competitive market, even those as established and popular as this energy drink giant. The impact of rising costs and the passing of the company's founder are notable factors in this year's financial results. What are your thoughts on this development? Do you think Red Bull can bounce back in the coming years? Feel free to share this article with your friends and discuss it. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.
