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Mar 26, 2022
Central Garden & Pet Q2 2022 Earnings Report
Net sales and operating income increased despite inflationary headwinds, and gross margin expanded
Key Takeaways
Central Garden & Pet reported a solid quarter with net sales increasing by 2% to $954 million and operating income rising by 2% due to strong execution in a challenging inflationary environment. The company's gross margin also expanded, and they remain on track to meet their fiscal 2022 financial targets.
Net sales increased 2% to $954 million compared to $935 million a year ago.
Diluted GAAP earnings per share for the quarter was $1.27, a decrease of $0.05 compared to the prior year quarter.
Operating income increased 2% to $107 million from $105 million a year ago.
Gross margin was 30.1%, an increase of 100 basis points compared to a year ago.
Central Garden & Pet
Central Garden & Pet
Central Garden & Pet Revenue by Segment
Revenue by Segment
Garden Segment Revenue
CapyFin.comPet Segment Revenue
CapyFin.com Forward Guidance
The Company continues to expect fiscal 2022 GAAP EPS to be $3.10 or better.
Positive Outlook
- Anticipated pricing actions across the Company's portfolio
- Investments in capacity expansion
- Investments in brand building
- Investments in consumer insights
- Investments in innovation and eCommerce to drive sustainable growth
Challenges Ahead
- Increasing costs for commodities and freight
- Exacerbation by the current geopolitical environment
- Increasing labor costs
- A return to more normalized consumer demand patterns following extraordinary demand spanning two fiscal years
- Resuming more historical levels of promotional activity
Revenue & Expenses
Visualization of income flow from segment revenue to net income