Austrian billionaire Dietrich Mateschitz is getting a bumper pay out of €680.5m after his Red Bull energy drink empire grew unabated despite the pandemic gripping the world economy.
Red Bull GmbH, the holding company overseeing sales of the canned caffeine-spiked drink, booked net revenue of €6.3bn in 2020, 4% more than a year earlier, according to the group’s annual report.
That produced net income of €1.18bn, a 29% increase from 2019.
Red Bull is paying out half of the year’s distributable profit plus €500m of retained earnings to Mr Mateschitz and his co-shareholders, Thailand’s Yoovidhya family, which controls 51% of the company, according to a resolution of the shareholders attached to the annual report.
Red Bull’s total dividend is more than double the amount paid to shareholders last year.
Mr Mateschitz gets an additional €165m extra dividend on top of his pro-rata amount, according to the resolution, which gives no reason for the different treatment.
Chalerm Yoovidhya also gets an extra €3.2m.
Competition in the energy drinks market is heating up, with big tobacco eyeing up opportunities.
British American Tobacco recently invested in startup Tru, a maker of energy and wellness drinks, as the cigarette maker joins a health push amid efforts to move away from tobacco and nicotine.
Big Tobacco is eyeing new areas for growth as the number of people smoking decreases across the developed world. After cigarette alternatives such as heated tobacco and vaping created a new segment, companies have been going a step further and exploring ways to move away from nicotine.