Sales, earnings rise at Central Garden & Pet
Central Garden & Pet reported fourth quarter 2018 sales increased 2.4% to $502.3 million compared to $490.5 million in the fourth quarter a year ago.
The Walnut Creek, Calif.-based lawn and garden and pet products supplier attributed the increase primarily to acquisitions. Branded product sales of $395.5 million increased 0.5%, and sales of other manufacturers’ products of $106.8 million increased 10.1%. Organic sales growth increased 2.8%, driven by gains in the pet segment.
For the full year, the supplier posted net sales of net sales of $2.22 billion – a 7.8% increase compared to $2.05 billion a year ago. The company also attributed the increase primarily to acquisitions closed in fiscal 2018 and noted that fiscal 2018 containing one less week compared to fiscal 2017.
Branded product sales increased 7% to $1.76 billion for the year while sales of other manufacturers’ products increased 11.1% to $454.4 million. Organic sales growth for the year, excluding the extra week a year ago, increased 2.6% due to strength in the pet segment. ‘
Central Garden & Pet reported a net income of $123.6 million, up 56.8% compared to $78.8 million in fiscal 2017. Fiscal 2018 included a $21.5 million one-time gain from a revaluation of the company's deferred tax accounts.
"We are pleased with how Central executed in fiscal 2018, as market share gains and increased distribution continued to drive revenue and earnings growth, even in the face of headwinds which made for some challenges during the year," said George Roeth, president and CEO of Central Garden & Pet.
“By focusing on what we could control, we were able to overcome the effects of unfavorable weather, which impacted several of our businesses, an unfavorable mix of sales, and unexpected inflationary pressures on our costs,” Roeth added. “Our continued efforts around reducing costs 1% to 2% annually and judicious expense control were big factors in keeping margins stable for the year despite the unfavorable environment."
The Walnut Creek, Calif.-based lawn and garden and pet products supplier attributed the increase primarily to acquisitions. Branded product sales of $395.5 million increased 0.5%, and sales of other manufacturers’ products of $106.8 million increased 10.1%. Organic sales growth increased 2.8%, driven by gains in the pet segment.
For the full year, the supplier posted net sales of net sales of $2.22 billion – a 7.8% increase compared to $2.05 billion a year ago. The company also attributed the increase primarily to acquisitions closed in fiscal 2018 and noted that fiscal 2018 containing one less week compared to fiscal 2017.
Branded product sales increased 7% to $1.76 billion for the year while sales of other manufacturers’ products increased 11.1% to $454.4 million. Organic sales growth for the year, excluding the extra week a year ago, increased 2.6% due to strength in the pet segment. ‘
Central Garden & Pet reported a net income of $123.6 million, up 56.8% compared to $78.8 million in fiscal 2017. Fiscal 2018 included a $21.5 million one-time gain from a revaluation of the company's deferred tax accounts.
"We are pleased with how Central executed in fiscal 2018, as market share gains and increased distribution continued to drive revenue and earnings growth, even in the face of headwinds which made for some challenges during the year," said George Roeth, president and CEO of Central Garden & Pet.
“By focusing on what we could control, we were able to overcome the effects of unfavorable weather, which impacted several of our businesses, an unfavorable mix of sales, and unexpected inflationary pressures on our costs,” Roeth added. “Our continued efforts around reducing costs 1% to 2% annually and judicious expense control were big factors in keeping margins stable for the year despite the unfavorable environment."