Sales on the rise for Central Garden and Pet
Central Garden and Pet reported that second quarter 2019 net sales increased 9.9% to $673.7 million compared to $613.1 million in the second quarter a year ago.
The supplier said that sales growth was driven in large part by the company's three recent acquisitions, including Arden Companies, Bell Nursery and General Pet.
Organic sales increased 2.1%, due to strength in the garden segment. Branded product sales of $543.2 million increased 9.2%, and sales of other manufacturers’ products of $130.5 million increased 13%, the Walnut Creek, Calif.-based company said.
Central Garden and Pet also posted a second quarter net income of $42.4 million, down 6% from a net income $45.2 million in the second quarter a year ago.
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The bottom line: Sales rise nearly 10% to $637.7 million while profits slip 6%.
From the CEO: "Overall, we showed good progress in the quarter, and had a favorable start to the Garden season. We knew coming into the quarter that it would be a challenging one, as we were comparing against strong 6% organic revenue growth in the second quarter a year ago, and were impacted by the short-term earnings drag of the Company's recent acquisitions," said George Roeth, president and CEO of Central Garden & Pet. "While these acquisitions have negatively impacted our short-term results due to timing and seasonality factors, as well as accounting rules, we remain focused on acquiring companies with strong cash flows, attractive margins and superior returns over the long term."
Company info: Read Central Garden and Pet’s full second quarter report here.
The supplier said that sales growth was driven in large part by the company's three recent acquisitions, including Arden Companies, Bell Nursery and General Pet.
Organic sales increased 2.1%, due to strength in the garden segment. Branded product sales of $543.2 million increased 9.2%, and sales of other manufacturers’ products of $130.5 million increased 13%, the Walnut Creek, Calif.-based company said.
Central Garden and Pet also posted a second quarter net income of $42.4 million, down 6% from a net income $45.2 million in the second quarter a year ago.
###
The bottom line: Sales rise nearly 10% to $637.7 million while profits slip 6%.
From the CEO: "Overall, we showed good progress in the quarter, and had a favorable start to the Garden season. We knew coming into the quarter that it would be a challenging one, as we were comparing against strong 6% organic revenue growth in the second quarter a year ago, and were impacted by the short-term earnings drag of the Company's recent acquisitions," said George Roeth, president and CEO of Central Garden & Pet. "While these acquisitions have negatively impacted our short-term results due to timing and seasonality factors, as well as accounting rules, we remain focused on acquiring companies with strong cash flows, attractive margins and superior returns over the long term."
Company info: Read Central Garden and Pet’s full second quarter report here.