Central Garden & Pet snags 16.6% sales boost in Q1
Central Garden & Pet Company experienced a solid double-digit boost in the first quarter, putting the company on track to meet its 2017 guidance.
Central Garden & Pet Company experienced a solid double-digit boost in the first quarter, putting the company on track to meet its 2017 guidance.
"The first quarter puts Central well on track to deliver our fiscal year earnings guidance, which will remain unchanged at this time," said George Roeth, president & CEO of Central Garden & Pet. "While over half of the year-over-year earnings increase in the first quarter was related to acquisitions and timing, we continue to be encouraged by our strong organic sales growth and market share gains. We remain focused on executing with excellence against our strategy and plan."
Net sales for the first quarter ended Dec. 24 increased 16.6% to $419.5 million, up from $359.8 million in the year-ago period. Much of the gain was owing to two recent acquisitions, as well as a favorable close to the Fall garden season and share growth in the Pet segment.
Branded product sales were up 20.4%, and sales of other manufacturers’ products rose 4.1%. Organic sales growth was 7.0%.
Net sales were up 22.2% in the Pet segment, as well as 4.0% in the Garden segment.
Meanwhile, the company moved into the black, with net income of $7.6 million up from a loss of $8.6 million in the year-ago period.
In terms of 2017 guidance, the company expects non-GAAP earnings per fully-diluted share of $1.34 or higher for fiscal 2017, an increase of 6% or more from the prior year.
"It is important to note that our first quarter is a very small part of the company’s annual earnings, and as such, we are holding our guidance at this time," added Roeth. "Our business plans are delivering against expectations, and we continue to stay focused on executing our strategies of accelerating our portfolio growth momentum, increasing our innovation output and success rates, and driving cost savings and productivity improvements. We fully expect that these actions and associated investments will drive sustainable profit growth in the years ahead; however quarterly results versus a year ago may be somewhat lumpy due to our size, weather and timing of activity."