Central Garden & Pet Company reported a notable increase in financial performance for the second quarter of fiscal 2026, with net sales reaching $906.2 million, a 9% increase from $833.5 million in the same quarter of the previous year. The company's gross profit also rose to $299.6 million, up from $273.1 million, resulting in a gross margin of 33.1%, which reflects a 30 basis point improvement. Operating income for the quarter increased by 22.1% to $113.9 million, while net income attributable to Central Garden & Pet Company was $79.4 million, or $1.28 per diluted share, compared to $63.6 million, or $0.98 per diluted share, in the prior year.
In comparison to the previous fiscal period, Central Garden & Pet experienced a 2.3% increase in net sales for the six months ended March 28, 2026, totaling $1.52 billion, up from $1.49 billion. The Pet segment saw a modest increase of 1.3% in net sales, while the Garden segment grew by 3.6%. The overall gross profit for the six-month period also improved, rising to $490.2 million from $468.8 million, with a gross margin increase of 70 basis points to 32.2%.
Strategically, the company entered into a significant partnership with Phillips Pet Food & Supplies on April 13, 2026, forming a new pet distribution business. Central contributed its pet distribution operations to this new entity, receiving cash proceeds and a 20% ownership stake. This move is expected to enhance distribution efficiency and reduce operational complexity. Additionally, Central Garden & Pet completed the acquisition of Champion USA LLC for approximately $57 million, further expanding its product offerings in the cattle fly-control market.
Operationally, the company reported a decrease in employee headcount, with 61,379 shares used in the computation of net income per share for the quarter ended March 28, 2026, compared to 64,140 shares in the same quarter of the previous year. The company also noted a significant increase in accounts receivable, which contributed to a net cash used in operating activities of $119.9 million for the six months ended March 28, 2026, compared to $115.7 million in the prior year.
Looking ahead, Central Garden & Pet anticipates continued growth driven by its strategic initiatives and market conditions. The company expects to maintain adequate liquidity through cash generated from operations and its $600 million credit facility, which remains untapped as of the end of the reporting period. The management remains optimistic about the potential for further acquisitions and the overall performance of both the Pet and Garden segments in the upcoming quarters.
About CENTRAL GARDEN & PET CO
Central Garden & Pet Company is a leading U.S. provider of branded and private label products in the pet supplies and lawn and garden consumables markets. Its Pet segment offers dog and cat supplies, small animal and bird products, equine and insect control items, while its Garden segment includes grass seed, fertilizers, pest controls, and live plants. Central leverages a broad brand portfolio, extensive manufacturing, and a nationwide sales and distribution network serving mass merchants, specialty retailers, and eCommerce channels.
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