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 eMndaercdh 29, 2025 or ☐ TRANSITION REPORT PURSUANT OF SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Central Garden & Pet Company (State or other jurisdiction of incorporation or organization) Delaware 001-33268 68-0275553 (Commission File Number) (I.R.S. E ...

Central Garden (CENTA) came out with quarterly earnings of $1.04 per share, beating the Zacks Consensus Estimate of $0.94 per share. This compares to earnings of $0.99 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10.64%. A quarter ago, it was expected that this pet and lawn products maker would post a loss of $0.03 per share when it actually produced earnings of $0.21, delivering a surprise of 800%.Over the last four quarte ...

Exhibit 99.1 CENTRAL GARDEN & PET ANNOUNCES Q2 FISCAL 2025 FINANCIAL RESULTS Delivers fiscal 2025 Q2 GAAP EPS of $0.98 vs. $0.93 and non-GAAP EPS of $1.04 vs. $0.99 a year ago amid softer sales in the quarter Reaffirms 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 financial results for its fiscal 2025 second quarter ended March 29, 2025. ...

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - Central Garden (CENTA) is highlighted as a recommended growth stock based on the Zacks Growth Style Score, which evaluates a company's genuine growth potential beyond traditional metrics [2] - The company currently holds a favorable Growth Score and a top Zacks Rank, indicating strong investment potential [2] Group 2: Earnings Growth - Earnings growth is crucial for investors, with double-digit growth being particularly desirable as it signals strong future prospects [4] - Central Garden's projected EPS growth for the current year is 11.3%, significantly outperforming the industry average of 3.2% [5] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to fund new projects without relying on external financing [6] - Central Garden's year-over-year cash flow growth stands at 8.7%, exceeding the industry average of 4.5% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 11.4%, compared to the industry average of 9.3% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions are indicative of potential stock price movements [8] - The current-year earnings estimates for Central Garden have been revised upward, with the Zacks Consensus Estimate increasing by 0.1% over the past month [8] Group 5: Conclusion - Central Garden has achieved a Growth Score of B and a Zacks Rank of 2, reflecting positive earnings estimate revisions and strong growth metrics [9] - This combination positions Central Garden as a potential outperformer and a solid choice for growth investors [10]

Group 1 - Central Garden (CENTA) shares have increased by 1.5% over the past four weeks, closing at $32.26, with a mean price target of $41.83 indicating a potential upside of 29.7% [1] - The average price targets from analysts range from a low of $31 to a high of $50, with a standard deviation of $6.31, suggesting variability in estimates [2] - Analysts are optimistic about CENTA's earnings prospects, as indicated by a positive trend in earnings estimate revisions, which historically correlates with stock price movements [4][10] Group 2 - The Zacks Consensus Estimate for the current year has increased by 0.1% over the past month, with one estimate rising and no negative revisions [11] - CENTA holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating strong potential for upside [12] - While consensus price targets may not be reliable for predicting exact gains, they can provide a directional guide for price movement [12]

Group 1 - Central Garden (CENTA) shares have increased by 0.2% over the past four weeks, closing at $31.32, with a mean price target of $42.20 indicating a potential upside of 34.7% [1] - The average price targets from analysts range from a low of $34 to a high of $50, with a standard deviation of $5.93, suggesting a variability in estimates [2] - Analysts show strong agreement on CENTA's ability to report better earnings, with a positive trend in earnings estimate revisions correlating with potential stock price increases [4][9] Group 2 - Over the last 30 days, the Zacks Consensus Estimate for CENTA's current year earnings has increased by 6.8%, with three estimates moving higher and no negative revisions [10] - CENTA holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates [11] - While consensus price targets may not be reliable for predicting the extent of gains, they can provide a directional guide for price movement [12]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates involves navigating inherent risks and volatility [1] Group 1: Company Overview - Central Garden (CENTA) is currently highlighted as a recommended growth stock, benefiting from a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 5.1%, with projected EPS growth of 9.1% this year, surpassing the industry average of 8.6% [4] Group 2: Financial Metrics - Central Garden's year-over-year cash flow growth stands at 8.7%, significantly higher than the industry average of 1.8% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 11.4%, compared to the industry average of 3.6% [6] Group 3: Earnings Estimates - The current-year earnings estimates for Central Garden have increased by 7.1% over the past month, indicating a positive trend in earnings estimate revisions [8] - The combination of a Growth Score of B and a Zacks Rank 1 suggests that Central Garden is positioned as a potential outperformer for growth investors [10]

Group 1 - Central Garden & Pet Company (CENTA) is experiencing significant activity in the options market, particularly with the March 21, 2024 $20 Put showing high implied volatility, indicating potential for a major price movement [1] - Implied volatility reflects market expectations for future stock movement, suggesting that investors anticipate a significant event that could lead to a rally or sell-off [2] - Analysts have a mixed outlook on Central Garden & Pet Company, with no earnings estimates increased in the last 60 days and three analysts reducing their estimates, leading to a decrease in the Zacks Consensus Estimate from $1.01 to $0.95 per share [3] Group 2 - The high implied volatility may indicate a developing trading opportunity, as options traders often seek to sell premium on such options, hoping the stock does not move as much as expected by expiration [4]

Core Viewpoint - Central Garden (CENTA) shares have increased by 10.1% in the past four weeks, closing at $32.86, with a potential upside indicated by Wall Street analysts' price targets suggesting a mean estimate of $41.60, representing a 26.6% upside [1] Price Targets - The average price target consists of five short-term estimates ranging from a low of $31 to a high of $50, with a standard deviation of $7.02, indicating variability among analysts [2] - The lowest estimate suggests a decline of 5.7% from the current price, while the highest estimate indicates a potential upside of 52.2% [2] Analyst Sentiment - There is strong agreement among analysts regarding CENTA's ability to report better earnings than previously predicted, which supports the view of potential upside [4] - The Zacks Consensus Estimate for the current year has risen by 7.1% over the past month, with two estimates increasing and no negative revisions [10] Zacks Rank - CENTA holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, indicating a strong potential upside [11] Earnings Estimate Revisions - Increasing optimism among analysts about CENTA's earnings prospects is reflected in the upward revisions of EPS estimates, which have shown a strong correlation with near-term stock price movements [9]

Financial Performance - The 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] - 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] - 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] - The company reported a basic earnings per share (EPS) of $0.22 for the three months ended December 28, 2024, 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 3.1%[95] - 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 4.9%[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 Cash Equivalents - 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] - Total cash, cash equivalents, and restricted cash amounted to $632,669 thousand as of December 28, 2024, up from $355,619 thousand a year earlier, reflecting an increase of 77.7%[36] Acquisitions and Goodwill - The company acquired TDBBS, LLC for approximately $60 million, enhancing its portfolio in the pet segment and eCommerce capabilities[54] - The company reported goodwill of $4,925 thousand as part of the acquisition of TDBBS, reflecting the premium paid over the net tangible assets acquired[56] Debt and Liabilities - The Company has long-term debt totaling $1,190.4 million as of December 28, 2024, which is slightly up from $1,189.6 million as of December 30, 2023[66] - The Company incurred approximately $6 million in debt issuance costs related to the issuance of $400 million 5.125% Senior Notes due 2031[69] - The Company has $300 million in Senior Notes due February 2028, $500 million in Senior Notes due October 2030, and $400 million in Senior Notes due April 2031, all with a fixed interest rate of 5.125%[66] - The Company’s total liabilities include current liabilities of $9,094 thousand and long-term lease liabilities of $3,727 thousand related to the acquisition of TDBBS[56] Inventory and Assets - Total inventories, net, decreased to $815,782 thousand as of December 28, 2024, from $948,398 thousand on December 30, 2023, representing a decline of 14.0%[57] - The company had total assets of $3.54 billion as of December 28, 2024, an increase from $3.42 billion a year earlier[93] Intangible Assets - 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 4.7%[62] - The Company’s total marketing-related intangible assets, net, were $231.4 million as of December 28, 2024, down from $223.1 million as of December 30, 2023[62] - The Company’s customer-related intangible assets, net, were valued at $221.4 million as of December 28, 2024, compared to $251.8 million as of December 30, 2023, indicating a decrease of approximately 12%[62] - The Company amortizes its acquired intangible assets over a weighted average remaining life of 7 years for customer-related intangibles and 25 years for other acquired intangibles[64] - The estimated annual amortization expense related to acquired intangible assets is projected to be approximately $25 million per year from fiscal 2025 through fiscal 2027[65] Legal and Compliance - 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 is currently not involved in any legal proceedings that could materially affect its operations, except for ongoing litigation related to patent infringement[96] - The Company intends to pursue its defenses in ongoing litigation and believes it will prevail on the merits regarding the damages issue[97] - There have been no changes in internal control over financial reporting that materially affected, or are likely to materially affect, the Company's internal control during the first quarter of 2025[155] - The Company’s disclosure controls and procedures were deemed effective as of December 28, 2024[154] - There has been no material change in the Company's exposure to market risk from the previous disclosures[154] Credit Facility - The Credit Facility includes a $50 million sublimit for standby letters of credit and a $75 million sublimit for swing loan borrowings, with no borrowings outstanding as of December 28, 2024[81] - The company maintained compliance with all financial covenants under the Credit Facility as of December 28, 2024[83] - The applicable margin for SOFR-based borrowings was 1.00% as of December 28, 2024, with interest rates based on SOFR and the Base Rate[81]