Blue Buffalo scarfs up positive second quarter

Net sales at Blue Buffalo Pet Products Inc. in Wilton edged up by 2.8 percent to $294.8 million in the second quarter, driven primarily by its dry foods category, whose net sales increased $7.6 million, or 3.3 percent, to $237.5 million. Net sales of wet foods, treats and other products increased $400,000, or 0.7 percent, to $57.3 million.

Gross profit increased $10.4 million, or 8.2 percent, to $137.7 million and gross margin was 46.7 percent, up 230 basis points (BPS) compared with 44.4 percent in the second quarter of 2016. The increase in gross margin was driven primarily by supply chain efficiencies including lower input costs.

Net income increased $6.1 million, or 16.5 percent to $42.7 million in the second quarter, as compared to $36.6 million in the second quarter of 2016.

For the six-month period, net sales were up $30.1 million, or 5.3 percent, to $596.8 million, with dry foods up $22.2 million, or 4.8 percent, to $482.6 million and net sales of wet foods, treats and other products increasing by $7.8 million, or 7.4 percent, to $114.1 million.

Gross profit increased $25.9 million, or 10.3 percent, to $276.4 million and gross margin was 46.3 percent, up 210 BPS compared with 44.2 percent in the first half of 2016.

Net income was up by $12.8 million, or 17.3 percent, to $86.8 million as compared to $74 million in the first half of 2016.

Blue Buffalo CEO Billy Bishop said that the Wilton firm is expanding distribution of its Blue Life Protection Formula line to major mass and grocery retailers Target, Kroger, Meijer and Publix.

“Going forward, you will see us take a deliberate and channel-specific approach with each of our retail partners as we match their needs with the breadth and strength of the Blue Buffalo platform,” he said. “As part of this, our Wilderness, Basics, Freedom, and Earth’s Essentials lines will continue to be distributed exclusively through our specialty retail partners.”