Van Deer's Impact on Red Bull's Profits and Record Dividend for Mark Mateschitz

The Austrian energy drink producer Red Bull has reported a modest growth in revenue for the fiscal year 2024. According to financial analysis by the magazine trend, Red Bull's revenue increased by approximately 2 percent, rising from EUR6.85 billion to EUR6.99 billion. This growth, while positive, marks a slowdown compared to previous years.

In terms of profitability, Red Bull saw its annual profit increase by 2.5 percent, moving from EUR1.61 billion to EUR1.65 billion. However, the company experienced a notable decline in financial results, with a decrease of EUR102 million, resulting in profits of EUR267.3 million--representing a significant drop of 38 percent. This downturn has been attributed primarily to reduced dividends from subsidiary companies.

Of particular interest is the financial performance of Van Deer, a ski company co-owned by Red Bull and Austrian ski champion Marcel Hirscher. Reports indicate that this venture has incurred substantial losses, contributing to Red Bull's overall financial challenges.

Despite these setbacks, Red Bull has announced a substantial dividend distribution. The regular dividend, which is traditionally set at 50 percent of the annual profit, amounts to EUR822.8 million. Additionally, the company will issue a special payout of EUR500 million, bringing the total dividend to a remarkable EUR1.32 billion. This sum includes EUR647 million earmarked for Mark Mateschitz, the heir of the Red Bull empire, who holds 49 percent of the company's shares. Furthermore, Fides Trustees, a minority shareholder with a 2 percent stake, will receive a special payment of EUR3.17 million.

The financial results and dividend announcement demonstrate Red Bull's resilience in a competitive market, even amid the challenges faced by some of its ventures. The company's commitment to rewarding its shareholders remains strong, as evidenced by the significant total dividend payout.

In summary, while Red Bull has experienced a slowdown in revenue growth and faced challenges due to losses in its ski venture, it continues to deliver impressive returns to its shareholders, with a record dividend reflecting its ongoing profitability.