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Dec 24, 2022
Central Garden & Pet Q1 2023 Earnings Report
Central Garden & Pet reported a net loss for Q1 2023, impacted by garden segment challenges and lower sales.
Key Takeaways
Central Garden & Pet's Q1 2023 net sales were $628 million, a 5% decrease compared to the previous year. The company reported a loss per share of $0.16, contrasting with the earnings per share of $0.16 in the prior year quarter. The results were influenced by challenges in the garden segment, higher retailer inventories, and increased input costs. The company maintains its outlook for fiscal 2023 EPS to be $2.60 to $2.80.
Net sales decreased by 5% to $628 million compared to the prior year.
Loss per share was $0.16, compared to earnings per share of $0.16 in the prior year quarter.
Operating income was $0.4 million, a significant decrease from $26 million in the prior year.
The decline was driven primarily by challenges in the Garden segment.
Central Garden & Pet
Central Garden & Pet
Central Garden & Pet Revenue by Segment
Revenue by Segment
Garden Segment Revenue
CapyFin.comPet Segment Revenue
CapyFin.com Forward Guidance
The Company continues to expect fiscal 2023 EPS to be $2.60 to $2.80. This outlook reflects the macroeconomic uncertainty, further cost inflation, evolving consumer behavior and unfavorable retailer inventory dynamics. The outlook includes anticipated pricing actions and productivity initiatives across the Company's portfolio to help mitigate inflation. The Company expects fiscal 2023 capital spending to be significantly below fiscal 2022 levels.
Positive Outlook
- Anticipated pricing actions
- Productivity initiatives
- Mitigation of inflation
- Capital spending significantly below fiscal 2022 levels
- Fiscal 2023 will have 53 weeks compared to 52 weeks in fiscal 2022
Challenges Ahead
- Macroeconomic uncertainty
- Further cost inflation
- Evolving consumer behavior
- Unfavorable retailer inventory dynamics
- Outlook does not include the impact of any acquisitions or restructuring activities that may occur during fiscal 2023
Revenue & Expenses
Visualization of income flow from segment revenue to net income