CENT
Central Garden & Pet Company33.71
-0.05-0.15%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q1 '26
Reaffirms growth shift, garden optimism
Q&A largely reaffirmed the prepared shift from cost simplicity to a growth mindset, with management embedding innovation like Feeding Frenzy while pursuing M&A. Garden leaders highlighted 14% YoY distribution point gains and strong retailer support, expecting share expansion in wild bird, fertilizers, seeds, and grass seed despite weather delays. Pet execs confirmed category stabilization, with live animals up low single digits in Q4/Q1 after hitting bottom. M&A pipeline active, especially pet; balance sheet supports deals plus buybacks. Durables dipped over 20%, mostly timing/exits. Q&A adds color, not contradictions. Investors watch garden season kickoff. Garden poised for surge.
Key Stats
Market Cap
2.10BP/E (TTM)
13.22Basic EPS (TTM)
2.55Dividend Yield
0%Recent Filings
8-K
Board adds insider, hikes buybacks
Central Garden & Pet appointed Kay M. Schwichtenberg, ex-EVP Animal & Public Health, to its board effective March 1, 2026; she'll join the Audit Committee. Board approved FY2025 bonuses totaling over $2.4M for named execs, including CEO Lahanas's $1.134M, alongside base salary hikes and equity grants. Key move: $100M boost to share repurchases, lifting authorization to $127M as shares look undervalued. Program flexible, no expiration.
10-Q
Q1 FY2026 results
Central Garden & Pet posted Q1 FY2026 net sales of $617M, down 6.0% y/y from $656M, yet gross margin lifted to 30.9% (up 1.1 points) on productivity gains and favorable mix. Operating income slid to $16.5M from $28.0M as SG&A jumped on $7.7M facility closure costs, while diluted EPS fell to $0.11 from $0.21 amid share repurchases and anti-dilution from 0.4M out-of-money options. Pet held steady at $416M sales with $50M operating income; Garden swung to a $9.7M loss from $2.4M profit. Cash dipped to $721M after $57M cash acquisition of Champion USA assets on Dec 12; $1.2B debt steady, $545M revolver availability. Closed Champion for $57M cash. Litigation lingers.
8-K
Q1 sales dip, margins up
Central Garden & Pet reported Q1 FY2026 net sales of $617M, down from $656M, with GAAP EPS at $0.11 versus $0.21 last year; gross margin expanded 110bps to 30.9% via productivity gains. Pet held steady at $416M sales and 12.0% margin, while Garden dropped to $202M sales and -4.8% margin from shipment shifts and closures. Reaffirms FY2026 non-GAAP EPS of $2.70+. Cash swelled to $721M.
10-K
FY2025 results
Central Garden & Pet rang up FY2025 net sales of $3.1B, down 2.2% y/y, yet operating income vaulted 34.9% to $250M on 240bps gross margin expansion to 31.9% from Cost and Simplicity gains outpacing tariffs and commodity relief. Pet sales dipped 1.7% to $1.8B on softer durables, but margins hit 12.0%; Garden fell 3.0% to $1.3B amid weather hits and exits, rebounding to 10.7% margins post grass seed writedown. Q4 closed strong with $148M stock buybacks and $1.2B debt steady at 4.5% rates. Cash from ops funded $333M outflow. Seasonality crimps Garden cash flows.
8-K
Record profits despite sales dip
Central Garden & Pet reported fiscal 2025 net sales of $3.1B, down 2% from $3.2B, yet delivered record GAAP EPS of $2.55 and non-GAAP EPS of $2.73 amid Cost and Simplicity gains. Gross margins expanded 240bps to 31.9%; cash hit $882M. Fiscal 2026 non-GAAP EPS outlook: $2.70 or better. Margins drive profits.
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