CENT gets it right in Q1

Central Garden & Pet Company's first-quarter performance put president and CEO John Ranelli in a gratified mood.

“We are right where we want to be. Our strategic initiatives are working,” he said.

“We are growing organically. We are starting to demonstrate the potential of Central’s operating leverage by increasing gross profits significantly more than SG&A. We are showing our willingness and ability to manage and improve our portfolio, through organic growth, making accretive acquisitions and divesting non-strategic assets.

Net sales for the quarter ended Dec. 26, 2015 increased 17% to $359.8 million, up from $307.3 million last year.

The growth was mostly a 50/50 split between organic and acquisition-related.

Net loss widened to $8.6 million compared to a loss of $5.7 million the previous year, however.

Additionally, the sales growth was divided according to segment. Net sales for the Pet segment were up 25%, while the Garden segment only increased 3%.

"While I am very pleased with the progress we are making, we still have a lot of work to do, particularly in our Garden segment," added Ranelli.

The company is increasing its guidance for the full year. It now expects adjusted earnings per fully diluted share to grow at least 35% for the year, to $1.00 or higher.