Financial Performance - Total net sales for the three months ended December 28, 2024, were $656.4 million, an increase from $634.5 million for the same period in 2023, representing a growth of approximately 3.4%[93] - Operating income for the total company was $28.0 million for the three months ended December 28, 2024, compared to $8.4 million in the prior year, indicating a significant improvement[93] - Net income attributable to Central Garden & Pet Company was $14.0 million for the three months ended December 28, 2024, compared to $430,000 for the same period in 2023, reflecting a substantial increase[93] - Basic earnings per share (EPS) for the three months ended December 28, 2024, was $0.22, compared to $0.01 for the same period in 2023[89] - Total revenue for the three months ended December 28, 2024, was $656.4 million, an increase from $634.5 million for the same period in 2023, representing a growth of approximately 3.0%[95] Segment Performance - The Pet segment generated net sales of $427.5 million, up from $409.2 million, while the Garden segment saw sales increase from $225.3 million to $229.0 million[93] - The Pet Segment generated $427.5 million in revenue for the three months ended December 28, 2024, compared to $409.2 million in the same period of 2023, reflecting a growth of about 4.0%[95] - The Garden Segment reported revenues of $228.9 million for the three months ended December 28, 2024, up from $225.3 million in the same period of 2023, indicating a growth of approximately 1.6%[95] Cash and Liquidity - The company reported cash and cash equivalents of $618,020 thousand as of December 28, 2024, compared to $341,419 thousand on December 30, 2023, indicating a significant increase of 81.0%[36] - The company’s total cash, cash equivalents, and restricted cash reached $632,669 thousand as of December 28, 2024, compared to $355,619 thousand on December 30, 2023, an increase of 77.7%[36] - Restricted cash amounted to $14,649 thousand as of December 28, 2024, slightly up from $14,200 thousand on December 30, 2023[36] - As of December 28, 2024, the company had no borrowings outstanding under the Credit Facility, with a total net availability of approximately $50 million[81] - The company maintained compliance with all financial covenants under the Credit Facility as of December 28, 2024[83] Debt and Financing - The Company has long-term debt with a net carrying value of $1,190.1 million as of December 28, 2024, slightly increasing from $1,188.2 million as of December 30, 2023[66] - The Company issued $400 million of 5.125% senior notes due April 2031, with proceeds used to repay outstanding borrowings and for general corporate purposes[68] - The Company incurred approximately $6 million in debt issuance costs related to the 2031 Notes, which are being amortized over the term of the notes[69] - The company incurred approximately $2.4 million in debt issuance costs related to the Credit Facility, which are being amortized over the term of the facility[82] Assets and Inventory - Total assets as of December 28, 2024, were $3.54 billion, an increase from $3.42 billion in the prior year[93] - Total inventories, net, decreased to $815,782 thousand as of December 28, 2024, from $948,398 thousand on December 30, 2023, reflecting a decline of 14.0%[57] - The company reported finished goods inventory of $403,268 thousand as of December 28, 2024, down from $468,547 thousand on December 30, 2023, a decrease of 13.9%[58] - The Company recorded total other intangible assets, net of $465.9 million as of December 28, 2024, compared to $489.1 million as of December 30, 2023, reflecting a decrease of approximately 4.9%[62] Acquisitions and Goodwill - The company acquired TDBBS, LLC for approximately $60 million, enhancing its portfolio in the pet product segment and increasing eCommerce capabilities[54] - The company’s goodwill from the TDBBS acquisition was recorded at $4,925 thousand, contributing to the overall net assets acquired[56] - The Company evaluated goodwill for impairment and determined that no impairment testing was necessary for the three months ended December 28, 2024[63] - The Company has recorded a goodwill impairment charge for the three months ended December 28, 2024, and December 30, 2023, but specific amounts were not disclosed[5] Risk Management and Compliance - The company has not experienced any losses from cash accounts exceeding federally insured limits, indicating effective credit risk management[36] - The Company has not experienced any product recalls that would materially affect its financial position or operations[98] - Management believes that ongoing legal proceedings will not have a material impact on the Company's consolidated financial statements[97] - The Company continues to pursue defenses in ongoing litigation and believes it will prevail on the merits regarding the head start damages issue[97] - The Company has not identified any material changes in exposure to market risk since the last annual report[154] - The Company is actively monitoring product liability issues but has not faced any significant challenges that would impact financial results[98] Internal Controls - There have been no changes in internal control over financial reporting that materially affected the Company during the first quarter of 2025[155] - The Company’s disclosure controls and procedures were deemed effective as of December 28, 2024[154]

Core Insights - Central Garden & Pet Company (CENT) reported strong first-quarter fiscal 2025 results, with both revenue and earnings exceeding expectations and showing year-over-year growth [1][2] Financial Performance - The company achieved earnings of 21 cents per share, surpassing the Zacks Consensus Estimate of a loss of 3 cents, and increased from 1 cent per share in the prior-year period [3] - Consolidated net sales reached $656.4 million, exceeding the Zacks Consensus Estimate of $630 million, and reflecting a 3% increase from $634.5 million in the previous year [4] - Gross profit was $196 million, up from $178.8 million year-over-year, with a gross margin expansion of 160 basis points to 29.8% due to productivity improvements and moderating inflation [5] - SG&A expenses decreased to $167.7 million from $170.4 million in the prior year, with a percentage of net sales dropping 140 basis points to 25.5% [6] - Operating income rose to $28 million from $8.4 million in the previous year, with an operating margin expansion of 300 basis points to 4.3% [6] - Adjusted EBITDA was reported at $55.4 million compared to $37 million in the prior-year period [7] Segment Performance - The Pet segment generated net sales of $427 million, a 4% increase, driven by order shifts and promotional activities [8] - Operating income for the Pet segment was $51 million, up from $43 million, with an adjusted operating margin of 12%, an increase of 140 basis points [9] - The Garden segment reported net sales of $229 million, a 2% increase, benefiting from favorable weather and order shifts [9] - The Garden segment's operating income improved to $2 million from an operating loss of $9 million, with an operating margin increase of 500 basis points to 1.1% [10] Financial Health - At the end of the quarter, the company had cash and cash equivalents of $618 million, long-term debt of $1,190.3 million, and shareholders' equity of $1,519.1 million [11] - The company repurchased approximately 1.68 million shares, totaling $52 million, and expects capital expenditures for fiscal 2025 to be between $60 million and $70 million [12] Outlook - Central Garden & Pet estimates adjusted earnings for fiscal 2025 to be $2.20 per share or more, considering various economic factors and challenges in the retail market [13] - The company anticipates a softer second quarter of fiscal 2025 compared to the previous year [14]

Q1 FY2025 Investor Presentation 2.5.2025 Key Themes Niko Lahanas, CEO Financials, Segments & Outlook Brad Smith, CFO Management Q&A Niko Lahanas, Brad Smith, J.D. Walker, John Hanson Q1 FY25 Investor Presentation 2 Niko Lahanas CEO Forward-looking Statements Q1 FY25 Investor Presentation The statements contained in this presentation which are not historical facts, including statements concerning productivity initiatives and earnings guidance for fiscal 2025, are forward-looking statements that are subject t ...

Core Viewpoint - Central Garden (CENT) reported quarterly earnings of $0.21 per share, significantly exceeding the Zacks Consensus Estimate of a loss of $0.03 per share, marking an 800% earnings surprise [1][2]. Financial Performance - The company achieved revenues of $656.44 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.15% and showing an increase from $634.53 million year-over-year [3]. - Over the last four quarters, Central Garden has consistently surpassed consensus EPS estimates four times and revenue estimates two times [2][3]. Stock Performance and Outlook - Central Garden shares have declined approximately 5.2% since the beginning of the year, contrasting with the S&P 500's gain of 2.7% [4]. - The current consensus EPS estimate for the upcoming quarter is $1.01 on revenues of $904.71 million, and for the current fiscal year, it is $2.22 on revenues of $3.23 billion [8]. Industry Context - The Consumer Products - Discretionary industry, to which Central Garden belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, indicating potential challenges ahead [9]. - The performance of Central Garden's stock may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [9].

Operator Ladies and gentlemen, thank you for standing by. Welcome to Garden & Pets Fiscal 2025 First Quarter Earnings Call. My name is Julian, and I will be your operator, conference operator for today. At this time all participants are in a listen-only mode. Following prepared remarks, we will hold a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder, this conference call is being recorded. I will now turn the call over to Friederike Edelmann, Vic ...

Exhibit 99.1 CENTRAL GARDEN & PET ANNOUNCES Q1 FISCAL 2025 FINANCIAL RESULTS Fiscal 2025 Q1 net sales of $656 million vs. $635 million in the prior year Fiscal 2025 Q1 EPS of $0.21 vs. $0.01 a year ago Maintains outlook for fiscal 2025 non-GAAP EPS of $2.20 or better WALNUT CREEK, Calif. – Central Garden & Pet Company (NASDAQ: CENT) (NASDAQ: CENTA) ("Central"), a market leader in the pet and garden industries, today announced results for its fiscal 2025 first quarter ended December 28, 2024. "The fiscal yea ...

Central Garden & Pet Company (CENT) is likely to register a decrease in both top and bottom lines when it reports first-quarter fiscal 2025 on Feb. 5. The Zacks Consensus Estimate for revenues is pegged at $630.3 million, which indicates a decline of 0.7% from the prior-year reported figure. The consensus mark for the bottom line has remained unchanged in the past 30 days and is pegged at a loss of 3 cents, which indicates a sharp decline from earnings of 1 cent reported in the year-ago period. Central Gard ...

Central Garden & Pet Company (CENT) has seen its stock price plummet 14% in a month against the industry’s 0.5% growth. This decline can be traced to tough broader market dynamics and specific challenges faced by the company. Investors are currently divided on whether the stock is set for a further decline or is on the verge of a recovery.CENT Stock One Month Performance Image Source: Zacks Investment Research After a 2.5% decline during Friday’s session, the stock is now trading at $35.15, inching closer t ...

Central Garden & Pet Company (CENT) is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 18.43X, which positions it at a premium compared with the industry’s average of 13.05X. The stock is also trading above its median P/E level of 16.62X, observed in the past year. The valuation indicates that Central Garden & Pet is overvalued. Image Source: Zacks Investment Research The stock’s rapid ascent might have contributed to its elevated P/E multiple. Shares of Central Garden & Pet, whi ...

Central Garden & Pet Company (CENT) has revealed that its board of directors bumped up its share buyback authorization, underscoring its commitment to boosting shareholder value. The company can now buy back up to an incremental $100 million of its issued and outstanding Common Stock and Class A Common Stock.As of Dec. 11, 2024, this expansion raises the total repurchase authorization to approximately $130 million.An increased buyback program often indicates that a company has a strong cash flow and liquidi ...