| --- | --- | --- | |------------------------|-------|-------| | | | | | | | | | Q3 FY2024 | | | | Investor Presentation | | | | 8.7.2024 | | | | | | | Business & Industry Update Beth Springer, Interim CEO Q3 FY24 Financials, FY24 Outlook Niko Lahanas, CFO Management Q&A Beth Springer, Niko Lahanas, J.D. Walker, John Hanson Q3 FY24 Investor Presentation 2 | --- | --- | |-------------------------------|----------------------------------------------------------------------------------------------------------- ...

Financial Data and Key Metrics Changes - The company reported GAAP EPS of $1.19 and non-GAAP EPS of $1.32, with a decline from $1.25 and $1.40 respectively in the prior year [4][8] - Net sales were $996 million, a 3% decrease compared to the prior year, with organic net sales also declining by 3% [6][7] - Non-GAAP gross profit was $326 million, consistent with the prior year, while non-GAAP gross margin improved to 32.7% [7][8] - Non-GAAP operating income was $127 million, with a non-GAAP operating margin contracting by 60 basis points to 12.8% [7][8] - Non-GAAP net income was $88 million, down from $94 million a year ago [8] Business Line Data and Key Metrics Changes Pet Segment - Pet segment sales increased by 1% to $508 million, driven by the TDBBS acquisition, while organic net sales decreased by 2% [8][10] - Pet segment operating income improved by 39% to $83 million, with an operating margin expansion of 450 basis points to 16.4% [10] - E-commerce sales in the pet segment grew high single digits, representing approximately 28% of total pet sales [10][30] Garden Segment - Garden segment sales were $488 million, a 6% decline from the prior year, with organic net sales down 4% [11][12] - Non-GAAP Garden segment operating income was $74 million, down from $88 million a year ago, with operating margin declining to 15.1% [11][12] - E-commerce sales in the garden segment now represent 7% of total garden sales, with double-digit growth across categories [12] Market Data and Key Metrics Changes - The company faced unfavorable weather conditions impacting sales, particularly in live plants, which saw a significant decline [5][19] - The independent garden channel distribution business sold last fiscal year represented approximately 5% of garden sales [11] - The company noted that household penetration and buy rates in the garden category remained stable compared to prior years [12] Company Strategy and Development Direction - The company is focused on a cost and simplicity program to improve profitability and generate funds for investments in its Central to Home strategy [5][16] - The decision to exit the underperforming pottery business and close a live plants distribution facility is part of the strategy to streamline operations [5][14] - The company is looking for growth and margin-accretive acquisition targets in both pet and garden sectors, with a bias towards pet due to its less seasonal nature [17][46] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges such as volatile weather, retailer inventory uncertainty, and a value-seeking consumer environment [5][17] - The company maintains its fiscal year outlook for non-GAAP EPS of $2 or better, despite anticipated write-downs in grass seed inventory [16][17] - Long-term consumer trends in the pet and garden industries remain attractive, supporting growth potential [6][17] Other Important Information - The company reported cash and cash equivalents of $570 million, up from $333 million a year ago, indicating a strong balance sheet [13] - Total debt remained at $1.2 billion, with a gross leverage ratio of 3x, down from 3.1x a year ago [13] Q&A Session Summary Question: Insights on Garden Segment Trends - Management noted that unfavorable weather significantly impacted the live goods business, which is crucial for Q3 sales, but underlying metrics for other businesses remained healthy [19] Question: Margin Opportunities Moving Forward - The company plans to continue its cost and simplicity initiatives, with a focus on portfolio optimization and higher-margin businesses [20][21] Question: Clarification on Grass Seed Market Dynamics - Management explained that fluctuations in supply and demand have led to a significant drop in grass seed prices, necessitating a write-down of inventory [24][25] Question: Performance of Pet Durables - The durable pet products segment has been softer than expected, with consumables growing mid-single digits while durables continue to decline [27][28] Question: M&A Opportunities - The company is actively looking for both larger and tuck-in acquisition opportunities, particularly in the pet sector [45][51]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 29, 2024 or ☐ TRANSITION REPORT PURSUANT OF SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-33268 Central Garden & Pet Company Delaware 68-0275553 (State or other jurisdiction of incorporation or organization) (I.R.S. Em ...

Central Garden & Pet Company (CENT) came up with third-quarter fiscal 2024 results, with revenues falling short of the Zacks Consensus Estimate, although earnings surpassed the same. However, both the top and bottom lines declined year over year. Nonetheless, management has been actively strengthening its position in the pet and lawn and garden supplies space. The company focuses on brand building, containing costs, reducing complexity and improving margins. The company's Cost and Simplicity program contrib ...

Central Garden (CENT) came out with quarterly earnings of $1.32 per share, beating the Zacks Consensus Estimate of $1.25 per share. This compares to earnings of $1.40 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 5.60%. A quarter ago, it was expected that this maker of products for the pet supply and lawn and garden markets would post earnings of $0.83 per share when it actually produced earnings of $0.99, delivering a surp ...

About the Industry Brand Enhancement, Capital Discipline: Industry participants have been focusing on deepening engagements with consumers, creating innovative and compelling products and enhancing digital and data analytics capabilities. The launch of newer styles, customization options, unique packaging, point-of-sale displays, automation and high-end customer service enables them to woo consumers. Efforts to enhance the brand portfolio via marketing strategies, buyouts, innovations and alliances are like ...

☐ TRANSITION REPORT PURSUANT OF SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 1340 Treat Blvd., Suite 600, Walnut Creek, California 94597 (Address of principal executive offices) (925) 948-4000 (Registrant's telephone number, including area code) _______________________________________________________________________ (Former name, former address and former fiscal year, if changed since last report) Securities registered pursuant to Section 12(b) of the Exchange Act: Title of each class Trading ...

Central Garden & Pet Company (CENT) came up with second-quarter fiscal 2024 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. While net sales declined, earnings improved year over year owing to the Cost and Simplicity program.Management has been taking steps to strengthen its position in the pet supplies and lawn and garden supplies space. Central Garden & Pet Company is focusing on brand building, containing costs, lowering complexity and improving margins. The company has been e ...

Central Garden & Pet Company (NASDAQ:CENT) Q2 2024 Earnings Conference Call May 8, 2024 4:30 PM ET Company Participants Friederike Edelmann - Vice President of Investor Relations Mary Beth Springer - Interim Chief Executive Officer Nicholas Lahanas - Chief Financial Officer J.D. Walker - President of Garden Consumer Products John Hanson - President of Pet Consumer Products Conference Call Participants Bill Chappell - Truist Securities Bradley Thomas - KeyBanc Capital Markets Jim Chartier - Monness, Crespi & ...

Central Garden (CENT) came out with quarterly earnings of $0.99 per share, beating the Zacks Consensus Estimate of $0.83 per share. This compares to earnings of $0.72 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 19.28%. A quarter ago, it was expected that this maker of products for the pet supply and lawn and garden markets would post a loss of $0.14 per share when it actually produced earnings of $0.01, delivering a surpri ...