Blue Buffalo Pet Products, Inc. announced a new CEO and reported its third quarter 2016 results on October 10. Here are 10 key facts:
1. Billy Bishop was appointed CEO, effective January 1, 2017, replacing Kurt Schmidt, who will retire at that time.
Third quarter FY17 compared to third quarter FY16
2. Net sales of US$288 million, up 11.0 percent
3. Net sales of dry pet foods increased US$24.2 million, or 11.6 percent, to US$232.4 million.
4. Net sales of wet foods, treats and other products increased US$4.4 million, or 8.6 percent, to US$55.6 million.
5. Net income of US$21 million, down 20.6 percent; adjusted net Income of US$45 million, up 32.3percent
6. Gross profit increased US$24.9 million, or 23.0 percent, to US$133.2 million
7. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of US$74 million, up 21.4 percent
8. Diluted earnings per share (EPS) of US$0.11, down 21.1 percent; adjusted diluted EPS of US$0.22, up 31.5 percent
2016 Outlook
9. Net sales between US$1,140 million and US$1,150 million
10. Adjusted diluted EPS outlook raised from US$0.78 to US$0.79
CEO Succession
“Our strong performance continued into the third quarter, reflecting the high-quality execution of our strategy and our ability to drive strong pet parent demand across our channels,” said Blue Buffalo CEO Kurt Schmidt in a press release. “Given our performance through the first nine months of 2016, we are raising our EPS guidance for the year. Passing the baton to Billy has always been part of our succession plan, so on behalf of the Board, it is my pleasure to announce the appointment of Billy as our new CEO.”
