There’s growth in the garden for Central Garden & Pet
Central Garden & Pet Company had double-digit increases to report in the third quarter, with growth occurring across the board — but especially in its Garden segment.
“Central’s businesses continued to perform at a high level in our third quarter, driving meaningful organic growth and increased profitability,” said George Roeth, president & CEO. “Our Garden segment’s strong results were a key driver, with market share gains broadly across categories, driven by strong partnerships with customers, increased demand creation activities including new products, and a continued focus on reducing operating costs. Very simply, we had outstanding execution.”
“Our Pet segment also performed well during the quarter. It delivered its eighth consecutive quarter of year-over-year organic growth and continued to increase market share, with point-of-sale-data tracking well above category averages.” Roeth continued, “The company’s strong earnings growth this quarter was achieved despite higher costs related to our continuing investments for future growth, as we brought new facilities on-line, increased our innovation spending and continued to successfully integrate our acquisitions.”
Net sales for the quarter ended June 24, 2017 increased 11.7% to $574.6 million compared to $514.5 million in the third quarter a year ago. Total company organic sales growth, which excludes the Segrest and K&H businesses, rose 7.6%. Branded product sales of $462.1 million increased 14.5%, and sales of other manufacturers’ products rose 1.4%.
Pet sales were up 9.1% to $313.4 million, and Garden sales were up 14.9% to $261.2 million.
Net income of $32.2 million also rose 23.9% from $26.0 million in the third quarter a year ago.
The company is also raising its guidance to non-GAAP earnings per fully-diluted share of $1.44 or higher for fiscal 2017, an increase of 14.3% or more from the prior year.
Beacon points to record sales and EPS in Q3
Beacon Roofing Supply, Inc. managed to score a couple record wins in the third quarter — namely, its total sales and its EPS.
“Record sales and EPS highlighted our solid third quarter results," said president and CEO Paul Isabella. "Existing residential roofing sales produced a thirteenth consecutive quarter of year-to-year gains, exhibiting great consistency. Our complementary products business posted strong 6.3% existing market growth, reflecting the healthy residential market and our focus on expanding complementary product offerings across our entire footprint. Overall existing market sales growth was encouraging when viewed against the significant rain disruptions in the Eastern U.S., consecutive mild winters lessening demand across Northern markets, and the challenging comparison to last year’s Q3.
Net sales for the quarter ended June 30 were $1.21 billion, an increase of 5.3% over last year. . Residential roofing product sales increased 8.3%, non-residential roofing product sales declined 4.7%, and complementary product sales increased 15.7% over the prior year.
Third quarter EPS of $0.73 was up from $0.68 in the prior-year third quarter, and net income was up from $41.1 million to $44.7 million.
"Despite the demand pressures, gross margins improved meaningfully on a sequential basis and remained solid in the quarter, which is encouraging for Q4," added Isabella. "We have been pleased to see our pricing show increased signs of stabilization, which is on target with our previous expectations. Our operating cost leverage highlights continued focus on tight expense control, even as we invest in key initiatives across the company. As I look ahead to Q4, I believe that Beacon is well positioned for a strong fourth quarter and delivery of another year of great performance and earnings for our shareholders.”
Other things of note for Beacon last quarter: a total of five acquisition completions, totaling 23 branches. Beacon also opened 4 greenfield locations this fiscal year.
ADS buys maker of high-capacity drains
Advanced Drainage Systems has acquired Duraslot a manufacturer of storm water collection surface drains used in a variety of construction applications. Terms of the transaction were not disclosed.
ADS is a global manufacturer of water management products and solutions for commercial, residential, infrastructure and agricultural applications. Founded in 1966, the company operates a global network of approximately 60 manufacturing plants and 30 distribution centers.