First Quarter ended December 27, 2025 Quarterly Earnings Report Supplemental Financial Presentation January 28, 2026 Please view this presentation in conjunction with our Q1 2026 earnings release, which is furnished on Form 8-K, our related pre-recorded remarks and additional information regarding our non-GAAP financial measures, including GAAP to non-GAAP reconciliations, available on our website at https://investor.scotts.com. 1 Safe Harbor Disclosure Statements contained in this presentation, which addre ...

Summary of Central Garden & Pet Company Conference Call Company Overview - **Company**: Central Garden & Pet Company (NasdaqGS:CENT) - **Date**: December 02, 2025 Key Points Industry Insights - **Pet Industry Trends**: The pet industry is experiencing a transition back to long-term growth rates of 2%-4% after a COVID-related surge in pet adoptions. The company is optimistic about regaining household penetration by late 2026 or 2027 [6][7][8] - **Durables and Live Animals**: The softness in durables includes live animals, with a noted decline in demand post-COVID. However, the live animal business showed growth in Q4, indicating potential recovery [6][7] - **Cat Products**: There is an opportunity for growth in the cat product segment, which has been historically underserved. The company aims to increase its exposure in this category [10] Product Innovation and Strategy - **Focus on Innovation**: The company is shifting from a cost and cash focus to a growth agenda, emphasizing innovation and M&A to drive top-line growth [11][12] - **SKU Rationalization**: Continuous SKU rationalization is a priority, with a focus on private label partnerships to enhance retail relationships [13][31] - **Equine Products**: The equine segment is performing well due to effective branding and marketing strategies, including collaborations with influencers [15][17] Market Dynamics - **Aquatics Category**: The aquatics segment has been soft, attributed to a lack of innovation. The company is working on improving consumer success in this area through better product engineering and technology integration [23][24] - **Lawn & Garden Performance**: The Lawn & Garden segment has gained shelf space and market share, driven by strong execution and partnerships with retailers [26][28] Financial Outlook - **Cash Position**: The company has a strong cash balance of nearly $900 million, with plans to allocate it towards M&A in core categories, particularly pet consumables [37][39] - **Pricing Strategy**: The company plans to implement a 1% price increase to offset rising commodity costs and tariffs, indicating a challenging pricing environment [57][58] Consumer Behavior - **Private Label vs. Branded Products**: There has not been a significant shift towards private label products yet, but the company anticipates that consumer value sensitivity may lead to increased private label performance in the future [60] Operational Challenges - **Seasonality in Lawn & Garden**: The Lawn & Garden category has been slower to transition online compared to other categories, with only 10% of sales coming from online channels. The company expects gradual growth in this area [34][35] Strategic Considerations - **Potential for Diversification**: The company is open to exploring acquisitions outside its core categories if they present strong synergies and market potential [47][49] Cost Management - **Continuous Improvement**: The company emphasizes ongoing cost-saving initiatives and operational efficiencies, with a focus on integrating acquired businesses [52][53] Conclusion Central Garden & Pet Company is navigating a transitional phase in the pet and lawn & garden industries, focusing on innovation, strategic partnerships, and effective cost management to drive growth. The company remains optimistic about future opportunities, particularly in the pet segment, while also addressing challenges in pricing and market dynamics.

Fiscal Year 2025 Performance - The company met or exceeded all previously provided financial guidance[21] - The company's share of the total Lawn & Garden category increased by 1%[21, 24] - Non-GAAP adjusted EBITDA grew by $71 million, a 14% increase, reaching $581 million[21] - Non-GAAP adjusted EPS grew by 63% to $3.74 per share[21] - Free cash flow was $274 million in excess of Non-GAAP adjusted earnings[21] - Debt paydown of $120 million drove interest expense down by $30 million, reducing the leverage ratio to 4.1x[21] - Full year net sales reached $3.41 billion, a 4% decrease compared to the previous year[62] Q4 2025 Performance - Net sales were $387.4 million, a 7% decrease compared to Q4 2024[59] - Adjusted gross margin rate improved by 1,030 bps to 7.2%[59] - Adjusted net loss was $(113.1) million, an improvement compared to $(131.5) million in Q4 2024[59] Fiscal Year 2026 Outlook - The company expects low single-digit sales growth in the U S Consumer segment[87] - The company anticipates a non-GAAP adjusted gross margin rate of at least 32%[86, 87] - The company projects adjusted EPS to be between $4.15 and $4.35 per share[87]

Financial Performance - Q3 2025 - Net sales reached $1.19 billion, a decrease of 1% compared to Q3 2024[56] - Adjusted gross margin rate improved to 32.1%, an increase of 290 bps from Q3 2024[56] - Adjusted net income was $151.5 million, compared to $133.8 million in Q3 2024[56] - Adjusted diluted EPS was $2.59, compared to $2.31 in Q3 2024[56] - Adjusted EBITDA was $256.1 million, compared to $236.8 million in Q3 2024[56] Segment Performance - U S Consumer net sales increased by 1% in Q3 2025[64] - Hawthorne net sales decreased by 54% in Q3 2025[64] - Other segment net sales increased by 8% in Q3 2025[64] Strategic Focus & Outlook - The company aims for sustainable net sales growth, averaging 3% annually, focused on the consumer lawn & garden business[19] - The company expects approximately $75 million in additional supply chain cost savings over fiscal years 2026 and 2027[45] - The company anticipates approximately $250 million in free cash flow for fiscal year 2025[60] - The company projects an adjusted gross margin rate of approximately 30% for fiscal year 2025, targeting mid-30% by fiscal year 2027[60] - E-commerce penetration of POS dollars is at approximately 10% year-to-date[41]

Financial Performance & Strategic Focus - ScottsMiracle-Gro's FY24 net sales reached $3.6 billion, with approximately 85% originating from the U.S[6] - The company's FY24 adjusted EBITDA was $510.1 million, and free cash flow was $583.5 million[6] - ScottsMiracle-Gro reaffirms FY25 adjusted EBITDA guidance of $570 million to $590 million, representing a ~12% to ~16% year-over-year increase[53] - The company expects FY25 adjusted EPS to be at least $3.50, an +89% increase[55] - ScottsMiracle-Gro is targeting a leverage ratio in the low 4's by the end of FY25 and below 3.5x by the end of FY27[59, 67] Industry Position & Capabilities - The Consumer DIY Lawn & Garden industry is estimated to be ~$11 billion in 2024[21] - ScottsMiracle-Gro's U.S Consumer net sales have grown at an average of ~5% CAGR since FY17[46, 47] - Approximately ~15% of ScottsMiracle-Gro's annual sales are generated from innovation launched in the trailing 3 years[32] - The company's supply chain team is expected to deliver $75 million of cost savings in FY25, with another $75 million targeted for FY26 & FY27[36]