Central Garden Pet Company Reports Fiscal 2024 Q3 Financial Results

authorIntellectia.AI2024-08-08
6
CENTA.O
Illustration by Intellectia.AI

Central Garden & Pet Company Reports Fiscal 2024 Q3 Financial Results

Central Garden & Pet Company (NASDAQ:CENT, NASDAQ:CENTA), a market leader in the Pet and Garden industries, has announced its financial results for the third quarter of fiscal year 2024, ending June 29, 2024.

Key Financial Metrics

Financial Metric Fiscal Q3 2024 Year-Over-Year (YoY) Consensus Estimates
Total Revenue $996 million -2.6% $1.0 billion
GAAP Earnings Per Share (EPS) $1.19 -$0.06 $1.20
Non-GAAP EPS $1.32 -$0.08 Not Provided
Gross Profit $317 million -0.3% Not Provided
Operating Income $116 million -5.7% Not Provided
Net Income $80 million -3.6% Not Provided
Adjusted EBITDA $156 million -6.0% Not Provided

The company's financial performance shows a minor decline in revenue and earnings compared to the same quarter last year. Both GAAP and Non-GAAP EPS slightly fell short of year-ago figures but remained close to Wall Street's expectations. A focus on margin improvement through the Cost and Simplicity program saw gross margin expand by 70 basis points to 31.8% on a GAAP basis and by 80 basis points to 32.7% on a non-GAAP basis.

Revenue Performance by Segments

Segment Q3 2024 Revenue Q3 2023 Revenue Year-Over-Year Change
Pet Segment $508 million $503 million +1%
Garden Segment $488 million $520 million -6%

The Pet segment saw a modest 1% increase in net sales, driven by the recent TDBBS acquisition and growth in consumable pet products. Conversely, the Garden segment experienced a 6% decline in net sales, influenced by lower sales in live plants and the previous sale of the independent garden channel distribution business.

Comments from Company's Officers

Beth Springer, Interim CEO, stated, "We delivered a solid third-quarter earnings performance, recognizing that we had a record third quarter in 2023. Our Cost and Simplicity program continues to prove effective as evidenced in our improved gross margins. Looking ahead, we remain committed to our long-term Central to Home strategy."

Forward Guidance

Central maintains its outlook for fiscal 2024 non-GAAP EPS to be $2.00 or better ($2.50 or better before the February 2024 stock dividend). The guidance acknowledges uncertain consumer demand, retailer dynamics, and potential macroeconomic and geopolitical volatility. Additionally, Central expects capital spending of approximately $60 million for fiscal 2024.

Stock Price Movement

After the earnings release, Central Garden & Pet Company's stock saw a minor decline of approximately 1.18%.

Central continues to advance its long-term strategies and aims for sustainable growth despite the existing economic challenges.

For more information, visit Central Garden & Pet Company .

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