(Bloomberg) -- Red Bull GmbH’s surging costs, including a more than one-third increase in sponsorship payments, canceled out higher sales and kept the energy drink maker’s profit roughly flat last year.
Sponsorship payments jumped 36% and exceeded €1 billion ($1.05 billion) for the first time. Red Bull is known for its support of athletes like Formula One champion Max Verstappen, as well as extreme sports ranging from surfing to base jumping.
Production, transport and logistics costs also rose. That kept net income about even at €1.72 billion despite a 24% surge in net revenue, according to Red Bull’s annual report published in the Austrian corporate registry.
It was the first year-end tally since founder Dietrich Mateschitz died about a year ago. Mateschitz’s son, Mark, became Europe’s richest millennial with an estimated wealth of $15.7 billion after inheriting his father’s 49% stake in the company, based in Fuschl am See near Salzburg.
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Sales of the highly-caffeinated beverage topped 11 billion cans last year for the first time.
The share of sales in the US fell to 44% from 46% in 2021. Europe accounted for 36% of net revenue.
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