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Mar 27, 2021
Central Garden & Pet Q2 2021 Earnings Report
Reported record results driven by solid execution and continued strong demand in Pet and Garden.
Key Takeaways
Central Garden & Pet announced record Q2 fiscal 2021 results with net sales increasing by 33% to $935 million and diluted EPS growing by 69% to $1.32. The company also raised its outlook for fiscal 2021 diluted GAAP EPS to $2.25 or better and acquisitions are expected to add an incremental $0.11-$0.16 to fiscal 2021 EPS.
Total net sales increased 33% to $935 million compared to $703 million a year ago.
Diluted earnings per share grew 69% to $1.32 from $0.78 in the prior year quarter.
Garden segment net sales increased 49% to $443 million.
Pet segment net sales increased 21% to $492 million.
Central Garden & Pet
Central Garden & Pet
Forward Guidance
Company updated its fiscal year outlook and now expects fiscal 2021 GAAP EPS to be at or above $2.25.
Positive Outlook
- Benefit of strong performance in the first half of fiscal 2021
- Company's anticipated investments in capacity expansion
- Company's anticipated investments in brand building
- Company's anticipated investments in eCommerce to drive sustainable growth
- Accretive impact of recent acquisitions
Challenges Ahead
- Increasing costs for key commodities
- Increasing costs for labor
- Increasing costs for freight
- Resuming more normal levels of promotional activity
- Second-half headwinds associated with lapping almost ideal weather for the gardening season and the COVID-19 tailwinds in fiscal 2020