Pet drives growth for Central Garden & Pet in Q2

2/7/2018

Central Garden & Pet Company reported a net sales boost of 5.3% in the second quarter, much of which was driven by strength in its Pet segment.


Net sales for the quarter ended March 25 were $569.9 million, up from $541.2 million in the second quarter of 2016.


The boost was largely due to an 8.4% increase in net sales for the Pet segment, which in turn was driven primarily by the recent Segrest acquisition. Organic pet sales grew by 1.3%.

Central Garden & Pet Company reported a net sales boost of 5.3% in the second quarter, much of which was driven by strength in its Pet segment.


Net sales for the quarter ended March 25 were $569.9 million, up from $541.2 million in the second quarter of 2016.


The boost was largely due to an 8.4% increase in net sales for the Pet segment, which in turn was driven primarily by the recent Segrest acquisition. Organic pet sales grew by 1.3%.


Net sales for the Garden segment grew 2.1%, due primarily to higher control and fertilizer sales and increased sales of other manufacturers' products.


Meanwhile, net income $34.7 million was up from $32.7 million in the year-ago period.


"Our second quarter results continue to reflect our initiatives to grow sales and profits organically," said George Roeth, president & CEO. "During the quarter we continued to grow faster than our categories, gaining market share across the majority of our businesses, with strong execution and a clear focus on demand-creation activities. On top of that, our M&A efforts continue to enhance our overall operating results."


The company also issued guidance of non-GAAP earnings per fully-diluted share of $1.37 or higher for fiscal 2017, an increase of 8.7% or more from the prior year, excluding any impact from the acquisition of K&H Manufacturing that closed last week.


Roeth concluded, "Overall, we remain pleased with our efforts to position the company for sustained growth through organic sales gains, cost savings, margin improvement, and strategic M&A activity, all intended to drive profit growth for years to come."


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