Central Garden & Pet Reports 2024 Financial Results

Central Garden & Pet ( (CENT) ) has released its Q4 earnings. Here is a breakdown of the information Central Garden & Pet presented to its investors.

Central Garden & Pet, a leading player in the pet and garden industries, offers innovative products aimed at enhancing homes and communities. With over 65 brands under its umbrella, the company boasts strong manufacturing and distribution capabilities across North America.

Central Garden & Pet recently released its financial results for the fiscal year 2024, highlighting a slight decline in net sales to $3.2 billion from $3.3 billion the previous year. Despite the decrease, the company managed to increase its non-GAAP earnings per share (EPS) to $2.13, up from $2.07 a year ago. The company emphasized its achievements in profit generation and cash flow, particularly in its Pet segment, despite facing challenges such as soft demand and an unfavorable garden season.

The financial report reveals a 3% decline in annual net sales, attributed partly to the absence of an extra week in the fiscal year compared to the prior year. The Pet segment saw a 2% decrease in sales, while the Garden segment experienced a 5% decline. However, the company reported an expansion in gross margins due to productivity improvements and reduced inflationary pressures. Central Garden & Pet also noted a reduction in operating income and net income compared to the previous year but highlighted a cash flow increase, driven by effective inventory management.

Looking ahead, Central Garden & Pet remains cautiously optimistic about fiscal 2025, projecting non-GAAP EPS of $2.20 or higher. The company is prepared to navigate potential challenges such as deflationary pressures, evolving consumer behaviors, and uncertainties in the macroeconomic and geopolitical landscape while focusing on sustainable growth and strategic initiatives.