Central Garden & Pet Company has revealed record financial results for its 2020 third quarter, ended June 27.
“Thanks to the hard work and dedication of our employees and our relentless focus on meeting the needs of our customers and consumers, we are proud to report that Central Garden & Pet delivered the strongest quarter in the company’s history,” said CEO said Tim Cofer. “I am very pleased with how we continue to navigate the challenging external landscape, while prioritising the health and safety of our people and executing against our evolving strategy and goals.”
Total net sales increased 18.0% to $833.5m compared with $706.6m in the third quarter a year ago, principally driven by organic strength in both the garden and pet segments as well as the inorganic contribution of the company’s C&S acquisition. Total company organic sales increased 16.5% for the quarter.
Operating income increased to $104.6m from $68.9m in the same quarter a year ago. The company’s net income was $68.8m for the quarter compared with $46.2m in the third quarter of 2019.
PET SEGMENT`
Third quarter net sales for the pet segment rose 18.0% to $413.3m compared with the same period a year ago, aided by the company’s C&S acquisition. Organic pet sales increased by 15.0%, with notable strength in pet distribution, dog treats and chews, animal health, and small animal food and supplies.
These gains were partially offset by a decline in live fish sales due to a major retailer exiting the category during fiscal 2019 and covid-19-related live animal shipment and supply limitations.
The pet segment’s operating income increased to $50.8m, up 44.8%, and operating to 12.3%. Pet’s organic operating margin improved to 12.2%. Pet EBITDA of $59.1 million increased from $43.1 million in the third quarter a year ago, primarily driven by volume strength, favourable mix, and overhead efficiencies.
Year-to-date net sales of $2,019.5m increased 9.6% compared with $1,842.3m a year ago. Organic sales increased 6.4%, driven by strength in both segments with the most significant contributions coming from distribution, dog treats and chews, wild bird feed, and controls and fertilisers. These gains were partially offset by lower year-to-date sales of pet beds, live fish, and grass seed.
The company will unveil its new, long-term strategy, named Vision2025, at a virtual Investor Day that will be coordinated with fiscal 2020 earnings release in late November.
