Business
Central Garden & Pet Announces Q3 2020 Results
Q3 2020 sales increased 18.0% to $833.5 million Q3 2020 diluted EPS of $1.27; an increase of $0.47 vs. prior year Full year 2020 diluted EPS now projected to
About this update from Central Garden & Pet Company
[{"type":"text","content":"\nQ3 2020 sales increased 18.0% to $833.5 million\nQ3 2020 diluted EPS of $1.27; an increase of $0.47 vs. prior year\nFull year 2020 diluted EPS now projected to be $1.90 or better\nInvestor Day to be held in conjunction with fiscal 2020 earnings release\n\n WALNUT CREEK, Calif.--(BUSINESS WIRE)--\nCentral Garden & Pet Company (NASDAQ: CENT) (NASDAQ: CENTA), a leading innovator, producer and distributor of branded and private label products for the lawn & garden and pet supplies markets, today announced record financial results for its fiscal 2020 third quarter ended June 27, 2020.\n\n\n\"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. I am very pleased with how we continue to navigate the challenging external landscape, while prioritizing the health and safety of our people and executing against our evolving strategy and goals\" said Tim Cofer, CEO of Central Garden & Pet.\n\n\nCofer continued, “We will be holding a virtual Investor Day in conjunction with the announcement of our year end and fourth quarter results. Attendees can expect to hear more about our Vision2025 strategy, engage with our top leaders and learn about how Central Garden & Pet is poised for growth in the future.”\n\n\nFiscal 2020 Third Quarter Financial Results\n\n\nTotal net sales increased 18.0% to $833.5 million compared to $706.6 million 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.\n\n\nThird quarter gross margin increased 40 basis points to 31.4%, due to a favorable mix of product sales and pricing. Operating income increased to $104.6 million from $68.9 million in the third quarter a year ago. Operating margin increased 290 basis points to 12.6% compared to 9.7%, due to gross margin gains, improved overhead leverage, as well as pandemic-related reductions in promotional activity.\n\n\n\n\nOther expense was $3.5 million compared to other income of $0.2 million in the third quarter a year ago. The difference was primarily due to a non-cash impairment charge of $3.6 millio...