Business
Central Garden & Pet Announces Record Q3 Fiscal 2021 Results
Q3 fiscal 2021 net sales increased 24% to $1,037 million Q3 fiscal 2021 diluted EPS grew 8% to $1.37 Raises outlook for fiscal 2021 diluted GAAP EPS to $2.45
About this update from Central Garden & Pet Company
[{"type":"text","content":"\nQ3 fiscal 2021 net sales increased 24% to $1,037 million\n\nQ3 fiscal 2021 diluted EPS grew 8% to $1.37\n\nRaises outlook for fiscal 2021 diluted GAAP EPS to $2.45 or better\n\nRaises outlook for fiscal 2021 diluted Non-GAAP EPS to $2.62 or better\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 third quarter ended June 26, 2021.\n\n“We delivered another record quarter due to the strong demand for our Pet and Garden brands and our team's hard work and dedication,” said Tim Cofer, CEO of Central Garden & Pet. “We are encouraged by the early progress on our Central to Home strategy and our third quarter results especially when we consider the extraordinary growth in the prior year quarter. Given our robust year-to-date performance, we are raising our outlook for fiscal 2021.”\n\nFiscal 2021 Third Quarter Financial Results\n\nNet sales increased 24% to $1,037 million compared to $833 million a year ago, driven largely by recent acquisitions, which contributed $137 million to the quarter, and organic growth in both segments. Organic sales increased 9%.\n\nGross margin was 30.9%, a decline of 50 basis points compared to a year ago, driven primarily by the impact of initial purchase accounting related to recent acquisitions as well as cost inflation in areas such as key commodities, labor and freight.\n\nOperating income increased 8% to $113 million from $105 million a year ago. Operating margin was 10.9%, a decline of 170 basis points primarily driven by gross margin compression, rising logistics cost and heightened investment spending.\n\nNet interest expense was $13 million compared to $11 million a year ago primarily due to higher debt outstanding.\n\n\nThe Company's net income increased 11% to $76 million from $69 million a year ago. Diluted earnings per share for the quarter grew 8% to $1.37 from $1.27 in the prior year quarter. Adjusted EBITDA increased 14% to $134 million from $118 million a year ago.\n\nGarden Segment Fiscal 2021 Third Quarter Results\n\nNet sales for the Garden segment increased 42% to $529 million driven by a $137 million contribution from recent acquisitions as well as organic growth of 5%, with notable strength in live plants, distribution an...