Q4 sales rise as profits slip at Central Garden & Pet
Acquisitions help drive a 23% sales increase for the year.
Central Garden & Pet reported fourth quarter net sales increased 9% to $739 million compared to sales of $676 million in the fourth quarter of 2020.
The Walnut Creek, Calif.-based pet and lawn and garden products supplier said sales growth was driven by the company's recent acquisitions but was partially offset by an organic sales decline of 1%.
Sales for the company’s lawn and garden segment increased 21% to $280 million for the quarter as sales in the pet products segment increased 3% to $459 million.
Full-year 2021 sales increased 23% to $3.3 billion from sales of $2.7 billion in the prior fiscal year. Central Garden & Pet said sales growth was driven by the acquisitions of Hopewell Nursery, Green Garden, DoMyOwn, and D&D, as well as 13% organic growth.
A net interest expense of $14 million for the fourth quarter resulted in Central Garden & Pet posting a net loss of $3 million for the period. The company posted a net income of $14 million in the previous fourth quarter.
Net income for all of 2021 was $152 million, an increase of 26% compared to $121 million a year ago.
The Bottom Line: Acquisitions help drive sales in the fourth quarter but Central Garden & Pet reports a $3 million loss for the period.
What the CEO said:“Central delivered another year of record results, thanks to the continued strength of the Garden and Pet industries and our teams' relentless execution as they adapt to the ever-changing dynamics of the pandemic. We made meaningful progress against our Central to Home strategy, investing in capabilities such as consumer insights, digital marketing and innovation, to drive our organic growth,” said Tim Cofer, CEO of Central Garden & Pet. “As we look to fiscal 2022, we expect to face continued inflationary pressures and supply chain disruption. However, I am confident in the dedication of our people and their ability to perform in this challenging environment.”
Company info: Click here to read Central Garden & Pet’s full fourth quarter 2021 financial report.