Aquisitions help fuel Central Garden & Pet Q1 sales

Central Garden & Pet Company (Central) reported first quarter 2018 total net sales increased 5.4% to $442.0 million compared to $419.5 million in the first quarter a year ago.

The company reported that the increase was primarily driven by acquisitions while organic sales increased 1.1%. Branded product sales of $349.9 million increased 5.1%, and sales of other manufacturers’ products of $92.1 million rose 6.3%.

The Walnut Creek, Calif.-based specialty supplier also reported a first quarter net income of $26.2 million compared to $7.6 million in the first quarter. Central said that a revaluation of the company's deferred tax accounts, necessitated by recent changes in the federal tax laws, added $16.3 million in net income.

Net sales for the garden segment, all organic, rose 1.3% to $116.9 million compared to the first quarter a year ago. The first quarter is seasonally the lowest quarter for the garden segment, the company said. Revenues were aided by strength in the controls and fertilizers category, which benefited from shipments of new products and expanded distribution.

"As we adapt to a changing retail environment, especially in the pet industry, we are pleased by our progress in e-commerce,” said George Roeth, president and CEO of Central Garden and Pet. “At the same time, in brick & mortar, we are taking meaningful actions with our product offerings and our Segrest acquisition, to develop programs in partnership with key customers, to drive store traffic and higher market baskets in the near-term."