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Dec 30, 2023
Central Garden & Pet Q1 2024 Earnings Report
Central Garden & Pet's Q1 2024 financial results were announced, demonstrating a solid start to the fiscal year amidst a challenging environment.
Key Takeaways
Central Garden & Pet reported a 1% increase in net sales, reaching $635 million, and earnings per share of $0.01 for Q1 2024. The company benefited from improved gross margins and early season shipments, with its fiscal year outlook remaining unchanged.
Net sales increased by 1% to $635 million compared to the previous year.
Earnings per share reached $0.01, a significant improvement from the prior year's loss per share of $0.16.
Gross margin improved by 80 basis points to 28.2%, driven by cost management and moderating inflation.
The company maintains its outlook for fiscal year 2024 non-GAAP EPS of $2.50 or better.
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
Central continues to expect fiscal 2024 non-GAAP EPS to be $2.50 or better before the impact of the stock dividend taking place on February 8, 2024.
Positive Outlook
- Outlook includes modest pricing actions to help mitigate inflationary headwinds.
- Company expects fiscal 2024 capital spending to be approximately $70 million.
- The fiscal year is off to a solid start as the firm successfully navigated the challenging external environment.
- Company delivered earnings per share of $0.01 as a result of improved gross margin and early season shipments.
- The outlook reflects modest pricing actions to help mitigate inflationary headwinds.
Challenges Ahead
- Outlook reflects an environment of macroeconomic and geopolitical uncertainty.
- There is deflationary pressure in some of Central's commodity businesses.
- There is uncertain consumer demand and retailer dynamics.
- Outlook excludes the impact of any acquisitions, divestitures or restructuring activities that may occur during fiscal 2024, including any projects under the Cost and Simplicity program.
- The outlook excludes the impact from the recent TDBBS acquisition.
Revenue & Expenses
Visualization of income flow from segment revenue to net income