Central Garden & Pet ( (CENT) ) has released its Q1 earnings. Here is a breakdown of the information Central Garden & Pet presented to its investors.
Central Garden & Pet Company, a leading player in the pet and garden industries, offers innovative products to enhance home and garden environments. The company, based in Walnut Creek, California, showcases a portfolio of over 65 brands and is committed to nurturing healthy homes and communities.
Central Garden & Pet recently reported strong financial results for Q1 of fiscal year 2025, with net sales increasing to $656 million, up from $635 million in the previous year. The company also saw a significant rise in earnings per share, reaching $0.21 compared to $0.01 a year ago. These results highlight Central’s successful start to the fiscal year, backed by increased shipments, productivity improvements, and easing inflation.
Key financial highlights include a 3% increase in net sales and a gross profit of $196 million, resulting in a gross margin improvement of 160 basis points to 29.8%. The company also reported a reduction in SG&A expenses as a percentage of sales, and operating income grew significantly to $28 million. Both the Pet and Garden segments showed growth, with the Pet segment’s operating income rising to $51 million and the Garden segment reversing a prior loss to report a positive operating income.
The company maintains a strong liquidity position with a cash balance of $618 million, reflecting careful financial management. Central Garden & Pet continues to advance its Cost and Simplicity program to streamline operations and improve efficiencies. The company repurchased $52 million worth of its stock during the quarter, with future repurchases planned.
Looking forward, Central Garden & Pet remains optimistic about fiscal 2025, maintaining its guidance for a non-GAAP EPS of $2.20 or better. The company is focused on executing its Central to Home strategy and navigating challenges in the retail landscape to deliver sustained growth and value to its stakeholders.