Central loses out in the pet supplies segment

The American retailer and producer Central Garden & Pet reported for the second quarter of 2014 net sales of $501.6 mio, a 1 per cent increase over the comparable fiscal 2013 period. The company's second quarter operating income was $44.8 mio, compared to operating income of $46.7 mio in the second quarter of 2013. Net income was $20.9 mio, compared with net income of $22.2 mio in the prior year. Net sales for the pet segment for the second quarter were $216.7 mio, a decrease of 8 per cent over the same quarter of 2013, impacted by reduced retail distribution for some of its products as well as lower consumer takeaway in areas of the pet industry where the company participates. The pet segment's branded product sales for the quarter decreased $23.3 mio, or 12 per cent, to $169.8 mio, while sales of other manufacturers' products were $46.9 mio, an increase of 12 per cent compared with the second quarter of 2013. The pet segment's operating margin declined 50 basis points to 11.2 per cent during the quarter. Gross margin was relatively unchanged from a year ago. For the second quarter, the pet segment's operating income was $24.2 mio, a decline from $27.5 mio in the prior-year period.