Solid quarter for Central Garden & Pet
Walnut Creek, Calif.-based Central Garden & Pet posted a “solid,” quarter for the period ended March 31, with sales gains in both its pet and garden segments.
Overall, net sales increased 7.6% to $613.1 million, compared to $569.9 million in the same quarter last year.
Net income of $45.2 million increased 30.4% compared to $34.7 million in the second quarter a year ago, due to the revenue increase, a reduction in Federal tax rates, among other factors.
Organic sales increased 6.1%, benefiting from new product introductions, shelf space gains, and expanded distribution of both branded and private label products
"We are executing well in bringing new products to market and expanding distribution of existing products in channels where we are under-represented, all while providing significant value to both our customers and consumers,” said George Roeth, President & CEO of Central Garden & Pet. "We experienced strong sell-in for the garden season this quarter. How consumer takeaway plays out in our third fiscal quarter will largely determine how much of this quarter's gain we retain."
Second quarter net sales for the Pet segment increased 7.8% to $321.7 million, from the same period a year ago, driven primarily by higher organic Pet sales, which increased 6.3%. Continued strength in the e-commerce and mass channels were primary drivers of the increase. The Pet segment’s second quarter branded product sales were $257.4 million, up 7.0% compared to a year ago, and sales of other manufacturers’ products were $64.3 million, an increase of 11.1%, driven primarily by growth at one large grocery customer where the company is in the process of rolling out its new store-within-a-store operating concept.
Net sales for the Garden segment rose 7.3% to $291.4 million, including revenue from the company's acquisition of Bell Nursery that closed in mid-March.
Overall, net sales increased 7.6% to $613.1 million, compared to $569.9 million in the same quarter last year.
Net income of $45.2 million increased 30.4% compared to $34.7 million in the second quarter a year ago, due to the revenue increase, a reduction in Federal tax rates, among other factors.
Organic sales increased 6.1%, benefiting from new product introductions, shelf space gains, and expanded distribution of both branded and private label products
"We are executing well in bringing new products to market and expanding distribution of existing products in channels where we are under-represented, all while providing significant value to both our customers and consumers,” said George Roeth, President & CEO of Central Garden & Pet. "We experienced strong sell-in for the garden season this quarter. How consumer takeaway plays out in our third fiscal quarter will largely determine how much of this quarter's gain we retain."
Second quarter net sales for the Pet segment increased 7.8% to $321.7 million, from the same period a year ago, driven primarily by higher organic Pet sales, which increased 6.3%. Continued strength in the e-commerce and mass channels were primary drivers of the increase. The Pet segment’s second quarter branded product sales were $257.4 million, up 7.0% compared to a year ago, and sales of other manufacturers’ products were $64.3 million, an increase of 11.1%, driven primarily by growth at one large grocery customer where the company is in the process of rolling out its new store-within-a-store operating concept.
Net sales for the Garden segment rose 7.3% to $291.4 million, including revenue from the company's acquisition of Bell Nursery that closed in mid-March.