Business
Central Garden & Pet Announces Record Q2 Fiscal 2021 Results
Q2 fiscal 2021 net sales increased 33% to $935 million Q2 fiscal 2021 diluted EPS grew 69% to $1.32 Raises outlook for fiscal 2021 diluted GAAP EPS to $2.25
About this update from Central Garden & Pet Company
[{"type":"text","content":"\nQ2 fiscal 2021 net sales increased 33% to $935 million\n\nQ2 fiscal 2021 diluted EPS grew 69% to $1.32\n\nRaises outlook for fiscal 2021 diluted GAAP EPS to $2.25 or better\n\nRaises outlook for fiscal 2021 diluted Non-GAAP EPS to $2.42 or better\n\nAcquisitions expected to add an incremental $0.11-$0.16 to fiscal 2021 EPS\n\n WALNUT CREEK, Calif.--(BUSINESS WIRE)--\nCentral Garden & Pet Company (NASDAQ: CENT, CENTA) (“Central”), a market leader in the Garden and Pet industries, today announced financial results for its fiscal 2021 second quarter ended March 27, 2021.\n\n“We delivered the fifth consecutive quarter of record financial results reflecting solid execution, continued strong demand in Pet and Garden and the tireless support of our employees,” said Tim Cofer, CEO of Central Garden & Pet. “We are making further strides against our Central to Home strategy and are pleased with our recent acquisitions. We remain confident about our future and given our strong organic performance in the first half; we are raising our outlook for fiscal 2021.”\n\nFiscal 2021 Second Quarter Financial Results\n\nTotal net sales increased 33% to $935 million compared to $703 million a year ago, driven largely by organic growth in both segments as well as by the recent acquisitions which contributed $76 million to the quarter. Organic sales increased 23%.\n\nGross margin decreased 40 basis points to 29.1% driven by the impact of initial purchase accounting adjustments related to recent acquisitions, as well as cost inflation in areas such as commodities, labor and freight.\n\nOperating income increased 58% to $105 million from $66 million a year ago. Operating margin increased 180 basis points to 11.2% compared to 9.4% in the prior year quarter, primarily driven by operating efficiencies. EBITDA increased 56% to $123 million from $79 million a year ago.\n\n\nNet interest expense was $10 million compared to $9 million a year ago, mainly due to higher debt outstanding.\n\nThe Company's net income increased 71% to $73 million from $43 million a year ago. Diluted earnings per share for the quarter grew 69% to $1.32 from $0.78 in the prior year quarter, driven by organic strength and $0.07 accretion from recent acquisitions.\n\nGarden Segment Fiscal 2021 Second Quarter Results\n\nNet sales for the Garden segment increased 49% to $443 million drive...