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Sep 26, 2020
Central Garden & Pet Q4 2020 Earnings Report
Central Garden & Pet had record operating results for Q4 and fiscal year 2020.
Key Takeaways
Central Garden & Pet announced record fourth quarter results, with net sales increasing by 25.0% to $676.0 million and earnings per share growing to $0.25. The company's success was attributed to the hard work of employees and a focus on customer needs.
Net sales increased 25.0% to $676.0 million compared to the fourth quarter a year ago.
Gross margin increased to 29.0%, an improvement of 150 basis points compared to the fourth quarter a year ago, primarily driven by favorable mix of product sales and pricing.
Operating income for the quarter increased to $25.2 million compared to $10.9 million in the prior year quarter.
The Company's net income was $13.6 million compared to $2.4 million in the prior year quarter, and earnings per fully-diluted share grew to $0.25 versus $0.04 in the fourth quarter of fiscal 2019.
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 currently projects fiscal 2021 GAAP EPS of $1.90 or better. This translates to fiscal 2021 adjusted EPS of $2.05 or better.
Positive Outlook
- Increased investments in capacity expansion
- Brand building
- eCommerce as the Company continues to invest in sustainable growth
- Resuming more normal levels of promotional activity
- Resuming more normal levels of travel
Challenges Ahead
- Increases in labor cost
- Increases in freight cost
- Increases in key commodities
- Second-half headwinds associated with lapping almost ideal weather for the gardening season
- COVID-19 tailwinds in 2020
Revenue & Expenses
Visualization of income flow from segment revenue to net income