Business
Central Garden & Pet Announces Q2 Fiscal 2022 Results
Q2 fiscal 2022 net sales increased 2% to $954 million Q2 fiscal 2022 diluted GAAP EPS of $1.27 Maintains outlook for fiscal 2022 diluted GAAP EPS of $3.10 or
About this update from Central Garden & Pet Company
[{"type":"text","content":"\nQ2 fiscal 2022 net sales increased 2% to $954 million\n\nQ2 fiscal 2022 diluted GAAP EPS of $1.27\n\nMaintains outlook for fiscal 2022 diluted GAAP EPS of $3.10 or better\n\n WALNUT CREEK, Calif.--(BUSINESS WIRE)--\nCentral Garden & Pet Company (NASDAQ: CENT) (NASDAQ: CENTA) (“Central”), a market leader in the garden and pet industries, today announced financial results for its fiscal 2022 second quarter ended March 26, 2022.\nThis press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220504005773/en/Central Garden & Pet Fiscal 2022 Q2 Financial Results (Graphic: Business Wire)\n“Central delivered another solid quarter thanks to strong execution by our team in this challenging inflationary environment,” said Tim Cofer, CEO of Central Garden & Pet. “Despite the ongoing headwinds, we grew sales and operating income, and importantly, expanded gross margin, and remain on track to deliver our fiscal 2022 financial targets. We continue to make purposeful investments to drive profitable long-term growth.”\n\nFiscal 2022 Second Quarter Financial Results\n\nNet sales increased 2% to $954 million compared to $935 million a year ago, driven by recent acquisitions, which contributed $52 million to the quarter. Organic net sales decreased 3.5% compared to the prior year quarter.\n\nGross margin was 30.1%, an increase of 100 basis points compared to a year ago, driven primarily by pricing as well as favorable product mix and productivity improvements, partially offset by cost inflation in commodities, freight and labor.\n\nOperating income increased 2% to $107 million from $105 million a year ago. Operating margin of 11.2% was in line with the prior year despite continued inflation and heightened investment spending.\n\nNet interest expense was $15 million compared to $10 million a year ago primarily due to higher debt outstanding.\n\n\nThe Company's net income was $70 million, a decrease of 4% from $73 million a year ago. Diluted GAAP earnings per share for the quarter was $1.27, a decrease of $0.05 compared to the prior year quarter. Adjusted EBITDA increased 2% to $131 million from $129 million a year ago.\n\nThe Company’s effective tax rate was 23.4% compared to 22.7% in the prior year quarter.\n\nGarden Segment Fiscal 2022 Second Quarter Results\n\nNet sales for the Garden segment incre...