WALNUT CREEK, Calif.--(BUSINESS WIRE)---- $CENT #CentralToHome--Central Garden & Pet Company (NASDAQ: CENT), (NASDAQ: CENTA), a leading consumer goods company in the pet and garden industries, today announced that it will participate in the following upcoming investor conferences: J.P. Morgan High Yield & Leveraged Finance Conference (March 3) Miami, Florida – Brad Smith, Chief Financial Officer, will participate in a fireside chat at 2:15 p.m. ET. Senior management will also host one-on-one meetings with i ...

Core Viewpoint - Central Garden & Pet Company has announced an increase in its stock repurchase program, allowing for the purchase of an additional $100 million of its common stock and Class A common stock [1] Group 1: Stock Repurchase Program - The Board of Directors has authorized the increase in the stock repurchase program [1] - The company is now authorized to purchase up to an additional $100 million of its common stock and Class A common stock [1] - The acquisition of the company's common stock is part of its strategy to enhance shareholder value [1]

Group 1 - Central Garden & Pet Company appointed Kay M. Schwichtenberg to its Board of Directors, effective March 1, 2026, bringing over 40 years of experience in the animal health industry, including 29 years with Central [1] - Schwichtenberg previously served as Executive Vice President of Animal & Public Health at Central until her retirement in February 2023, and held various senior leadership roles within the company [1] - The Chairman of the Board, Bill Brown, expressed confidence that Schwichtenberg's leadership experience and understanding of the business will contribute to the company's focus on growth, innovation, and long-term value creation [1] Group 2 - Central Garden & Pet Company reported fiscal 2025 net sales of $3.1 billion, indicating strong manufacturing and logistics capabilities [1] - The company is headquartered in Walnut Creek, California, and employs over 6,000 people primarily across North America [1] - Central Garden & Pet is recognized as a leading consumer goods company in the pet and garden industries, with a diversified portfolio of market-leading brands [1]

Group 1 - Central Garden (CENTA) shares have increased by 11.9% over the past four weeks, closing at $33.49, with a mean price target of $46 indicating a potential upside of 37.4% [1] - The average price targets range from a low of $33.00 to a high of $51.00, with a standard deviation of $8.68, suggesting variability in analyst estimates [2] - Analysts show strong agreement in revising earnings estimates higher, with two estimates moving up in the last 30 days and the Zacks Consensus Estimate increasing by 2.5% [12][11] Group 2 - The Zacks Rank for CENTA is 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] - While the consensus price target may not be a reliable indicator of the stock's potential gain, it does provide a directional guide for price movement [14]

Financial Performance - In fiscal 2025, consolidated net sales were $3.1 billion, with the Pet segment contributing approximately $1.8 billion and the Garden segment approximately $1.3 billion[106]. - For the first quarter of fiscal 2026, net sales decreased by $39.0 million, or 6.0%, to $617 million, with Pet net sales down 2.7% and Garden net sales down 12.0%[108]. - Gross profit for the first quarter of fiscal 2026 decreased by $5.1 million, or 2.6%, to $190.6 million, while gross margin increased by 110 basis points to 30.9%[115]. - Operating income for the first quarter of fiscal 2026 declined by $11.5 million, or 40.9%, to $16.5 million, with an operating margin decrease from 4.3% to 2.7%[121]. - Net income for the first quarter of fiscal 2026 was $6.8 million, or $0.11 per diluted share, compared to $14.0 million, or $0.21 per diluted share, in the prior year[128]. - GAAP net income attributable to Central Garden & Pet Company for the three months ended December 27, 2025, was $6.841 million, down from $14.009 million for the same period in 2024[132]. - Non-GAAP net income attributable to Central Garden & Pet Company for the three months ended December 27, 2025, was $12.779 million, unchanged from the same period in 2024[132]. - Net sales for the three months ended December 27, 2025, were $617.373 million, with a gross profit of $190.608 million, resulting in a gross margin of 30.9%[135]. - The Pet segment's GAAP operating income was $49.800 million, while the Garden segment reported a GAAP operating loss of $9.679 million for the three months ended December 27, 2025[136][137]. - Adjusted EBITDA for the three months ended December 27, 2025, was $49.763 million, compared to $55.436 million for the same period in 2024[139][140]. Expenses and Income - Selling, general and administrative expenses increased by $6.4 million, or 3.8%, to $174.1 million, representing 28.2% of net sales for the first quarter of fiscal 2026[117]. - Pet operating income decreased by $1.5 million, or 2.8%, to $49.8 million, while Garden operating income turned to a loss of $9.7 million, down from a profit of $2.4 million[122][123]. - Net interest expense for the first quarter of fiscal 2026 was $7.8 million, consistent with $7.7 million in the prior year[125]. - The effective income tax rate for the quarter ended December 27, 2025, was 23.3%, relatively consistent with 23.5% for the prior year[127]. Cash Flow and Investments - Net cash used by operating activities increased by $1.4 million, from $68.8 million for the three months ended December 28, 2024, to $70.2 million for the three months ended December 27, 2025[147]. - Net cash used in investing activities increased by $58.4 million, from $9.4 million for the three months ended December 28, 2024, to $67.8 million for the three months ended December 27, 2025, primarily due to increased acquisition activity[148]. - Capital expenditures are anticipated to be approximately $50 million in fiscal 2026, with $11 million already invested through December 27, 2025[151]. Debt and Financing - Total debt outstanding as of December 27, 2025, was $1,192.2 million, compared to $1,190.4 million at December 28, 2024[153]. - The Credit Facility provides for a $600 million principal amount senior secured asset-based revolving credit facility, with an additional $400 million available[171]. - As of December 27, 2025, net availability under the Credit Facility was approximately $545 million, with no borrowings outstanding[172]. - The applicable margin for SOFR-based borrowings was 1.00% as of December 27, 2025[173]. - The company incurred approximately $4.8 million of debt issuance costs related to the 2028 Notes, amortized over the term of the notes[167]. - The 2030 Notes can be redeemed at 102.063% on or after October 15, 2025, with accrued and unpaid interest[163]. - The 2028 Notes require semiannual interest payments and can be redeemed at 100.0% on or after January 1, 2026[168]. Acquisitions - The company acquired the U.S. assets of Champion USA LLC for approximately $57 million in December 2025, enhancing its position in the livestock industry[110]. - The company expects to continue evaluating potential acquisition candidates, which may require additional external capital[152]. Parent/Issuer Guarantors - As of December 27, 2025, net sales for the Parent/Issuer Guarantors were $162.8 million for the three months ended and $456.65 million for the fiscal year ended[182]. - Gross profit for the Parent/Issuer Guarantors was $38.145 million for the three months ended and $152.319 million for the fiscal year ended[182]. - The net income (loss) for the Parent/Issuer Guarantors was $(15.363) million for the three months ended and $(45.373) million for the fiscal year ended[182]. - The total assets for the Parent/Issuer as of December 27, 2025, were $5.219 billion, while total liabilities were $3.615 billion[182].

分组1 - Central Garden (CENTA) reported quarterly earnings of $0.21 per share, exceeding the Zacks Consensus Estimate of $0.11 per share, with an earnings surprise of +85.35% [1] - The company posted revenues of $617.37 million for the quarter ended December 2025, missing the Zacks Consensus Estimate by 4.18%, compared to year-ago revenues of $656.44 million [2] - Central Garden shares have increased about 7% since the beginning of the year, outperforming the S&P 500's gain of 1.1% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $1.05 on revenues of $845.55 million, and for the current fiscal year, it is $2.75 on revenues of $3.14 billion [7] - The Zacks Industry Rank for Consumer Products - Discretionary is currently in the top 40% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - Central Garden has a Zacks Rank 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6]

Financial Performance - Fiscal 2026 Q1 net sales were $617 million, down from $656 million in Q1 FY 2025, reflecting a decrease of approximately 6%[3] - Operating income decreased to $17 million from $28 million, resulting in an operating margin decline to 2.7% from 4.3%[3] - Net income attributable to Central Garden & Pet Company was $6.8 million, a decrease of 51.1% from $14.0 million in the prior year[26] - Non-GAAP net income attributable to Central Garden & Pet Company was $12.8 million, compared to $14.0 million in the same period last year[33] - Adjusted EBITDA for the three months ended December 27, 2025, was $49.8 million, down from $55.4 million in the prior year[39] Sales Performance - Pet segment net sales were $416 million, a decrease from $427 million, primarily due to portfolio optimization and shipment timing[5] - Garden segment net sales fell to $202 million from $229 million, also impacted by shipment timing and portfolio optimization efforts[7] - Net sales for the three months ended December 27, 2025, were $617.4 million, a decrease of 5.9% compared to $656.4 million for the same period in 2024[26] Margins and Profitability - Gross margin improved by 110 basis points to 30.9% compared to 29.8% in the prior year, driven by enhanced productivity[3] - Gross profit for the same period was $190.6 million, down from $195.7 million, resulting in a gross margin of 30.9%[26] Cash and Debt Management - Cash and cash equivalents increased to $721 million from $618 million year-over-year[9] - Total debt remained stable at $1.2 billion, with a gross leverage ratio of 2.9x, consistent with the prior year[10] - Cash, cash equivalents, and restricted cash at the end of the period totaled $737.2 million, down from $898.4 million at the beginning of the period[28] - Cash flows from operating activities resulted in a net cash used of $70.2 million, compared to $68.8 million in the previous year[28] Guidance and Future Investments - The company reaffirmed its fiscal 2026 non-GAAP diluted EPS guidance of $2.70 or better, emphasizing margin discipline and cost efficiency initiatives[14] - Capital expenditures for fiscal 2026 are projected to be between $50 million and $60 million, focusing on maintenance and targeted growth investments[15] Acquisitions and Expenses - The company incurred $57.0 million in payments to acquire companies during the quarter, significantly higher than $3.3 million in the same period last year[28] - The company recognized an incremental expense of $7.7 million related to facility closures during the quarter[32]

Core Viewpoint - Central Garden & Pet Company has appointed Apur Patel as Chief Legal Officer, effective January 26, 2026, succeeding George Yuhas who is retiring [1][2][3] Group 1: Appointment Details - Apur Patel will oversee all legal matters including corporate governance, mergers and acquisitions, securities and compliance, litigation, intellectual property, and enterprise risk management [2] - Patel has over 30 years of global experience in legal roles across consumer packaged goods, technology, and healthcare, previously serving at The Clorox Company as Vice President & Deputy General Counsel [3][4] Group 2: Leadership Transition - Niko Lahanas, CEO of Central Garden & Pet, expressed gratitude towards George Yuhas for his interim role and welcomed Apur Patel, highlighting his experience in aligning legal strategy with business priorities [3] - Patel is recognized for his executive presence and ability to build high-performing legal teams [4] Group 3: Company Overview - Central Garden & Pet Company is a leading consumer goods company in the pet and garden industries, with fiscal 2025 net sales of $3.1 billion [6][7] - The company has a diversified portfolio of market-leading brands and employs over 6,000 people, primarily in North America [7]

Core Viewpoint - Central Garden (CENTA) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system highlights the strong correlation between changes in earnings estimates and near-term stock price movements, making it a valuable tool for investors [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to significant price movements based on their trading activities [3]. Company Performance and Outlook - The upgrade reflects an improvement in Central Garden's underlying business, suggesting that investors may respond positively by driving the stock price higher [4]. - Central Garden is projected to earn $2.76 per share for the fiscal year ending September 2026, with a 2% increase in the Zacks Consensus Estimate over the past three months [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [6]. - Central Garden's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [9].

Core Insights - Central Garden & Pet has acquired the U.S. assets of Champion USA, enhancing its position in the sustainable livestock fly control market [1][3] - Champion USA has over 15 years of experience in providing EPA-approved fly-control solutions, benefiting more than 300,000 cattle producers and treating over 50 million head of cattle [2][5] - The acquisition is expected to strengthen Central's portfolio and distribution capabilities in the animal health segment [3][4] Company Overview - Central Garden & Pet reported fiscal 2025 net sales of $3.1 billion and has been a leader in the pet and garden industries for over 45 years [6][7] - The company offers a diverse portfolio of over 60 brands, focusing on innovative products that promote healthier homes and communities [6][7] - Central is headquartered in Walnut Creek, California, and employs over 6,000 individuals primarily in North America [7]