Business
Central Garden & Pet Announces Record Q3 Fiscal 2023 Financial Results
Fiscal 2023 Q3 net sales of $1,023 million Fiscal 2023 Q3 EPS of $1.56; Non-GAAP EPS of $1.75 Raises outlook for fiscal 2023 Non-GAAP EPS to $2.55 or better
About this update from Central Garden & Pet Company
[{"type":"text","content":"\nFiscal 2023 Q3 net sales of $1,023 million\nFiscal 2023 Q3 EPS of $1.56; Non-GAAP EPS of $1.75\nRaises outlook for fiscal 2023 Non-GAAP EPS to $2.55 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 third quarter fiscal 2023 financial results for the period ended June 24, 2023.\n\nThis press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230802323771/en/\n“We delivered record operating income and earnings per share in the third quarter while expanding gross margin, growing market share and significantly improving our cash position. We are also pleased with the progress we are making on our cost and simplicity program,” said Tim Cofer, CEO of Central Garden & Pet. “Given our record Q3 performance, coupled with the early visibility we have into the fourth quarter, we are raising our outlook for the full year.”\n\n\nFiscal 2023 Third Quarter Financial Results\n\n\nNet sales increased 1% to $1,023 million from $1,015 million a year ago.\n\n\nGross margin expanded by 80 basis points to 31.1% from 30.3% a year ago, and by 160 basis points to 31.9% on a non-GAAP basis. The gross margin expansion was driven by improved pricing, cost management and favorable product mix.\n\n\nOperating income increased 8% to $123 million from $114 million a year ago, and 20% to $137 million on a non-GAAP basis. Operating margin expanded by 80 basis points to 12.0% from 11.2% in the prior year, and by 220 basis points to 13.4% on a non-GAAP basis. The operating margin expansion was driven by improved gross profit and reduced commercial spend to align with demand.\n\n\nNet interest expense was $13 million compared to $14 million in the prior year quarter.\n\n\nThe Company's net income increased 10% to $83 million from $75 million a year ago, and 24% to $94 million on a non-GAAP basis. Earnings per share increased $0.17 to $1.56 from $1.39 in the prior year, and $0.36 to $1.75 on a non-GAAP basis. Adjusted EBITDA increased 17.3% to $166 million from $141 million in the prior year.\n\n\nThe Company’s effective tax rate was 24.4% compared to 23.7% in the prior year quarter.\n\n\n\n\nPet Segment Fiscal 2023 Third Quarter Results\n\n\nNet sales for the Pet segme...