Business
Central Garden & Pet Announces Q2 Fiscal 2023 Financial Results
Fiscal 2023 Q2 net sales of $909 million Fiscal 2023 Q2 earnings per share of $0.90 Expects fiscal 2023 EPS of $2.35 or better WALNUT CREEK,
About this update from Central Garden & Pet Company
[{"type":"text","content":"\nFiscal 2023 Q2 net sales of $909 million\n\n\nFiscal 2023 Q2 earnings per share of $0.90\n\n\nExpects fiscal 2023 EPS of $2.35 or better\n\n\n WALNUT CREEK, Calif.--(BUSINESS WIRE)--\nCentral Garden & Pet Company (NASDAQ: CENT) (NASDAQ: CENTA) (“Central”), a market leader in the Pet and Garden industries, today announced its second quarter fiscal 2023 financial results for the period ended March 25, 2023.\n\nThis press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230503005817/en/\n“Consistent with what we shared last month, Central delivered second quarter earnings per share of $0.90 in the face of softness across our garden portfolio. The garden category was impacted by a later start to the season, lighter foot traffic and unfavorable retailer inventory dynamics, while the pet segment expanded market share and performed largely as planned,” said Tim Cofer, CEO of Central Garden & Pet. “In line with our original outlook, we expect earnings per share growth in the second half of the year. In addition to short-term actions to cut controllable costs, we are progressing a multi-year cost and simplicity program to reduce complexity, improve margins, and elevate our brands.”\n\n\nFiscal 2023 Second Quarter Financial Results\n\n\nNet sales were $909 million compared to $954 million a year ago, a decline of 5%.\n\n\nGross margin was 28.6% compared to 30.1% a year ago. The gross margin decline was driven by the Garden segment due to unfavorable overhead absorption in key garden businesses and input cost pressures.\n\n\nOperating income was $78 million compared to $107 million a year ago, and operating margin was 8.6% compared to 11.2% in the prior year. The operating margin decline was largely driven by the Garden segment primarily due to overhead absorption pressures.\n\n\nNet interest expense of $15 million was in line with the prior year quarter.\n\n\n\n\nThe Company's net income was $48 million compared to $70 million a year ago. Earnings per share was $0.90 compared to $1.27 in the prior year quarter. Adjusted EBITDA was $107 million compared to $131 million a year ago.\n\n\nThe Company’s effective tax rate was 23.9% compared to 23.4% in the prior year quarter.\n\n\nPet Segment Fiscal 2023 Second Quarter Results\n\n\nNet sales for the Pet segment were $475 million compared to $4...