Business
Central Garden & Pet Announces Q3 Fiscal 2022 Results
Q3 fiscal 2022 net sales of $1,015 million Q3 fiscal 2022 diluted GAAP EPS of $1.39 Maintains outlook for fiscal 2022 diluted GAAP EPS at or above prior year
About this update from Central Garden & Pet Company
[{"type":"text","content":"\nQ3 fiscal 2022 net sales of $1,015 million\n\nQ3 fiscal 2022 diluted GAAP EPS of $1.39\n\nMaintains outlook for fiscal 2022 diluted GAAP EPS at or above prior year\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 third quarter ended June 25, 2022.\nThis press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220803005741/en/\n“In the face of a challenging environment, Central delivered third quarter EPS two cents above the prior year quarter,” said Tim Cofer, CEO of Central Garden & Pet. “Despite softness in the garden segment due to unfavorable weather, evolving consumer behavior, reduced foot traffic and changing retailer inventory expectations, our team continued to execute well during the quarter. We remain confident in our Central to Home strategy and will make purposeful investments to capture opportunities in the pet and garden industries that will drive profitable long-term growth.”\n\nThird Quarter Fiscal 2022 Financial Results\n\nNet sales decreased 2% to $1,015 million compared to $1,037 million a year ago primarily due to softness in the garden segment. Organic net sales decreased 5% compared to the prior year quarter.\n\nGross margin of 30.3% was 60 basis points below prior year, as pricing and productivity improvements were more than offset by cost inflation in commodities, freight and labor, and unfavorable product mix.\n\nOperating income of $114 million grew 1% compared to $113 million in the prior year. Operating margin increased 30 basis points to 11.2% despite continued inflation and heightened investment spending.\n\nNet interest expense was $14 million compared to $13 million a year ago.\n\n\nThe Company's net income was $75 million, a decrease of 1% from $76 million a year ago. Diluted GAAP earnings per share for the quarter increased $0.02 to $1.39 from $1.37 in the prior year quarter. Adjusted EBITDA of $141 million was in line with $141 million a year ago.\n\nThe Company’s effective tax rate was 23.7% compared to 22.5% in the prior year quarter.\n\nGarden Segment Third Quarter Fiscal 2022 Results\n\nNet sales for the Garden segment decreased 4% to $511 million from $529 million a year...