Central Garden & Pet Announces Q2 2020 Results
Second quarter net sales for the Pet segment rose 6.7% to $360.8 million compared to the same period a year ago, aided by the Company’s C&S acquisition. Organic Pet sales increased by 3.8%, with notable strength in dog treats and chews, pet distribution, small animal supplies, and animal health.
These gains were partially offset by a decline in live fish sales due to a major retailer exiting the category during fiscal 2019 and COVID-19 related live animal shipment limitations as well as the negative impact of lower pet bedding sales, in part due to a fire at one of the Company’s facilities during the first quarter.
The Pet segment’s operating income increased 24.6% compared to the second quarter a year ago to $33.6 million. Excluding the $2.5 million impairment charge for the live fish business in the second quarter of fiscal 2019, the increase was 13.9%, aided by the C&S acquisition and organic gains. Pet operating margin also increased to 9.3%, up 130 basis points compared to the prior year quarter. Pet’s organic operating margin, excluding the impairment charge, also improved, primarily due to volume strength and lower administrative costs. Pet EBITDA of $42.1 million increased from $35.0 million in the second quarter a year ago, or $37.6 million if the prior year impairment is excluded.
Source:Businesswire