Central Garden & Pet Co
NASDAQ:CENT

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Central Garden & Pet Co Logo
Central Garden & Pet Co
NASDAQ:CENT
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Price: 37.02 USD -0.83% Market Closed
Market Cap: $2.3B

Central Garden & Pet Co
Investor Relations

Central Garden & Pet Co. has cultivated a noteworthy presence in the market by expertly navigating the confluence of horticulture and pet care. Founded as a modest garden supply distributor, the company has blossomed into a multifaceted enterprise. They cater to the diverse demands of plant enthusiasts and pet owners alike, offering a rich array of products ranging from gardening tools, seeds, and fertilizers to premium pet food and bedding. Central Garden & Pet coalesces its varied product lineup under a portfolio of trusted brands, including Pennington, Amdro, Kaytee, and Nylabone, which resonate with consumers through a focus on quality and innovation. By aligning with trends in organic gardening and the humanization of pets, Central Garden & Pet remains at the forefront of consumer preferences.

At the heart of Central Garden & Pet’s business model lies the synergistic relationship between its garden and pet divisions, which are supplemented by a robust distribution network. The company optimizes its operations by strategically manufacturing certain products, while also partnering with key retailers, including big-box stores, home improvement centers, and independent outlets, to extend its market reach. This dual-channel strategy not only widens consumer access to its offerings but also fortifies its revenue streams. Through continual research and development, Central Garden & Pet sustains its edge in the market, adjusting to the evolving demands of environmentally conscious and tech-savvy customers. In essence, the company thrives by nurturing both nature and companionship, reflecting an astute understanding of its dual-market dynamics.

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Last Earnings Call
Fiscal Period
Q1 2026
Call Date
Feb 4, 2026
AI Summary
Q1 2026

Revenue Decline: Net sales were $617 million, down 6% year-over-year, mainly due to shipment timing and portfolio optimization.

Margin Expansion: Gross margin increased by 100 basis points to 30.8%, reflecting productivity gains and improved mix.

EPS Above Expectations: Diluted EPS was $0.11 GAAP and $0.21 non-GAAP, consistent with last year and above internal expectations.

Guidance Reaffirmed: Management reaffirmed fiscal 2026 non-GAAP diluted EPS guidance of $2.70 or better.

Continued Cost Discipline: Foundational cost and simplicity initiatives are largely complete, with ongoing portfolio optimization and facility consolidation.

Shift Toward Growth: Company is pivoting to focus more on growth through innovation, digital, private label, and M&A.

M&A Activity Picking Up: Acquisition of Champion USA completed post-quarter and more M&A discussions underway, especially in Pet.

Strong Balance Sheet: Cash and equivalents of $721 million and net leverage at 1.2x provide flexibility for both M&A and share repurchases.

Key Financials
Revenue
$617 million
Gross Profit
$190 million
Gross Margin
30.8%
SG&A Expense
$166 million
SG&A as % of Sales
26.8%
Operating Income
$24 million
Operating Margin
3.9%
Net Income
$13 million
Diluted EPS
$0.11
Non-GAAP Diluted EPS
$0.21
Adjusted EBITDA
$50 million
Cash Used by Operations
$70 million
Inventories
$20 million increase versus prior year
CapEx
$11 million
Depreciation and Amortization
$21 million
Share Repurchases
660,000 shares for $18.5 million
Cash and Equivalents and Short-Term Investments
$721 million
Total Debt
$1.2 billion
Gross Leverage
2.9x
Net Leverage
1.2x
Pet Segment Net Sales
$416 million
Pet Segment Operating Income
$50 million
Pet Segment Operating Margin
12.1%
Pet Segment Adjusted EBITDA
$60 million
Garden Segment Net Sales
$202 million
Garden Segment Operating Income
-$2 million
Garden Segment Operating Margin
-1.2%
Garden Segment Adjusted EBITDA
$8 million
Effective Tax Rate
23.3%
Earnings Call Recording
Other Earnings Calls

Management

Mr. William E. Brown
Founder & Chairman
No Bio Available
Mr. Nicholas Lahanas
CEO & Director
No Bio Available
Ms. Joyce McCarthy
General Counsel & Secretary
No Bio Available
Mr. John D. Walker III
President of Garden Consumer Products
No Bio Available
Mr. John Edward Hanson
President of Pet Consumer Products
No Bio Available
Mr. Brad Smith
Chief Financial Officer
No Bio Available
Mr. Howard A. Machek CPA
Senior VP & Chief Accounting Officer
No Bio Available
Mr. Chris Walter
Senior VP & Chief Information Officer
No Bio Available
Ms. Friederike Edelmann
Vice President of Investor Relations
No Bio Available
Ms. Marilyn Leahy
Interim Senior Vice President of Human Resources
No Bio Available

Contacts

Address
CALIFORNIA
Walnut Creek
1340 Treat Blvd Ste 600
Contacts
+19259484000.0
www.central.com
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