Central Garden & Pet locks in double-digit growth in 2016
Central Garden & Pet Company had double-digit sales growth to report for its full fiscal year in 2016 -- and decent figures for the fourth quarter as well.
Central Garden & Pet Company had double-digit sales growth to report for its full fiscal year in 2016 -- and decent figures for the fourth quarter as well.
Net sales for the year ended Sept. 24 were up 10.8% to $1.83 billion in 2016, up from 2015's $1.65 billion. A good chunk of this growth came from branded product sales, which were up 9.7%. But a smaller segment saw much higher growth: sales of other manufacturers' products rose 15.0%.
Net income for the full year was $44.5 million, a 39.2% increase compared to $32.0 million in fiscal 2015.
For the fourth quarter, net sales were up 7.0% to $413.4 million, compared to $386.4 million in the fourth quarter a year ago. Both the Pet and Garden segments experienced organic growth.
However, net loss widened to $5.6 million during the quarter, due to additional net impairment charges of $11.1 million versus the prior year.
"Central's results this quarter and year reflect continued disciplined execution of our initiatives to grow revenues and profits," said George Roeth, president & CEO of Central Garden & Pet. "Our efforts to grow organically have led to successful new products, expanded distribution and vendor relationships, and ultimately, market share gains. In addition, our recent acquisitions are performing at or above expectations."
The company issued its 2017 guidance of earnings per fully-diluted share of $1.34 or higher for fiscal 2017, an increase of 6% or more from the prior year.
"Delivering sustainable, profitable growth is a key strategic goal for our team," added Roeth. "To that end, we are increasing our investment and developing a three-year line of sight to our ability to deliver improved innovation output and success rates, as well as cost savings and productivity improvements."
"At the same time, we are continuing to take steps to create greater portfolio momentum, by making strategic acquisitions and divestitures and managing each of our businesses differentially based on their profit characteristics and growth potential.” Roeth continued, “The costs of these initiatives will slow down 2017 earnings growth but are expected to generate meaningful top and bottom-line growth going forward."