Central Garden & Pet(US:CENT)2025-11-24 21:24Financial Performance - Fiscal 2025 net sales were $3.1 billion, a decrease of 2% from $3.2 billion in fiscal 2024[1][5] - Fiscal 2025 GAAP EPS increased to $2.55 from $1.62, while non-GAAP EPS rose to $2.73 from $2.13[1][8] - Operating income for fiscal 2025 was $250 million, up from $185 million, with an operating margin increase to 8.0% from 5.8%[6][8] - The company reported a net loss attributable to Central Garden & Pet Company of $9,806,000 for the three months ended September 27, 2025, compared to a net loss of $34,158,000 in the same period of 2024, showing an improvement of approximately 71.2%[33] - The company reported a GAAP net loss of $9.8 million for the three months ended September 27, 2025, compared to a loss of $34.2 million for the same period in 2024[46] - Non-GAAP net income attributable to the company for fiscal year 2025 was $174.2 million, up from $142.4 million in fiscal year 2024, reflecting a significant increase[46] Margins and Profitability - Gross margin expanded by 240 basis points to 31.9% from 29.5%, driven by productivity initiatives[5][8] - Gross profit for the fiscal year ended September 27, 2025, was $997,336,000, compared to $943,735,000 in 2024, indicating an increase of about 5.66%[33] - The company reported a gross margin of 31.9% for fiscal year 2025, compared to 30.0% for fiscal year 2024[48] - Adjusted EBITDA for fiscal year 2025 was $371.0 million, compared to $334.2 million for fiscal year 2024, indicating growth[52] Segment Performance - The Pet segment reported net sales of $428 million, a slight decrease from $435 million, primarily due to the closure of U.K. operations[12][13] - The Garden segment saw net sales increase to $250 million from $234 million, driven by improved consumer demand[14] - The Pet segment's non-GAAP operating income for the three months ended September 27, 2025, was $30.6 million, compared to $34.6 million for the same period in 2024[50] - The Garden segment's GAAP operating income for fiscal year 2025 was $142.4 million, a significant increase from $81.9 million in fiscal year 2024[51] Cash and Debt Management - Cash and cash equivalents at the end of fiscal 2025 were $882 million, compared to $754 million in the prior year[16][17] - Total debt remained unchanged at $1.2 billion, with gross leverage at 2.8x, below the target range of 3.0 to 3.5x[17] - Cash and cash equivalents at the end of the fiscal year were $898,433,000, up from $768,403,000 at the end of the previous fiscal year, marking an increase of approximately 16.9%[35] - The company’s total liabilities increased to $2,040,138,000 as of September 27, 2025, compared to $1,878,980,000 as of September 28, 2024, representing a rise of about 8.6%[31] Future Outlook - The company expects fiscal 2026 non-GAAP EPS to be $2.70 or better, reflecting continued margin discipline and cost efficiencies[21] - Capital spending for fiscal 2026 is projected at approximately $50 million to $60 million, focusing on maintenance and targeted growth initiatives[22] Operational Efficiency - Cash flows from operating activities for the fiscal year ended September 27, 2025, were $332,506,000, a decrease from $394,892,000 in the previous year, reflecting a decline of about 15.8%[35] - Operating loss for the three months ended September 27, 2025, was $6,400,000, an improvement from an operating loss of $32,408,000 in the same period of 2024[33] - Non-GAAP adjustments for the three months ended September 27, 2025, amounted to $5,751,000, while for the same period in 2024, it was $21,047,000[53] Other Financial Metrics - Total current assets increased to $1,976,130,000 as of September 27, 2025, from $1,886,806,000 as of September 28, 2024, reflecting a growth of about 4.75%[31] - The company’s total equity increased to $1,584,933,000 as of September 27, 2025, from $1,557,545,000 as of September 28, 2024, indicating a growth of approximately 1.76%[31] - Depreciation & amortization for the three months ended September 27, 2025, totaled $20,831,000, compared to $22,738,000 in the same period in 2024[53] - Interest expense, net for the three months ended September 27, 2025, was $6,881,000, compared to $6,476,000 in the same period in 2024[53] - Other expense for the three months ended September 27, 2025, was $576,000, a decrease from $6,137,000 in the same period in 2024[53] - Income tax benefit for the three months ended September 27, 2025, was $(3,421,000), compared to $(10,621,000) in the same period in 2024[53] - Noncash stock-based compensation for the three months ended September 27, 2025, was $5,488,000, slightly higher than $5,445,000 in the same period in 2024[53] - Net loss attributable to noncontrolling interest for the three months ended September 27, 2025, was $(630,000), compared to $(242,000) in the same period in 2024[53]