Profits surge 61% at the lawn and garden and pet products supplier.
Central Garden & Pet reported first quarter 2022 net sales increased 12% to $661 million from net sales of $592 million in the previous first quarter.
The Walnut Creek, Calif.-based supplier said sales growth was driven by recent acquisitions, which contributed $70 million to the quarter.
Sales for the garden segment increased 45% to $225 million driven by a $70 million contribution from recent acquisitions offsetting a modest decline in organic sales of 0.3%. Strength in the wild bird category, chemicals, fertilizer, and live plants helped offset declines in garden distribution and grass seed.
In the company’s pet segment, sales were $436 million, in line with the prior year with notable contributions from animal health, dog and cat and the company's pet distribution businesses offset by declines in pet beds and small animal and aquatic supplies.
Profits surged as Central Garden & Pet posted a net income of $9 million, jumping 61% from a net income of $6 million in the first quarter last year.
The Bottom Line: Acquisitions help drive a 12% sales increase in the first quarter as profits rise 61% to $9 million.
What the CEO said: “We delivered another solid quarter thanks to continued demand for our Pet and Garden brands and the perseverance of our employees,” said Tim Cofer, CEO of Central Garden & Pet. “Our recent acquisitions exceeded our expectations for the quarter, and we remain encouraged by the fundamentals of our organic business in light of the extraordinary growth in the prior year.”
Company info:Click here to read the full first quarter financial report from Central Garden & Pet.