Central Garden & Pet Company (CENT) Q1 2025 earnings summary

Executive summary

• Fiscal 2025 began with strong performance, including net sales growth of 3–3.5% to $656–$656.4 million and EPS of $0.21, driven by favorable shipment timing, promotional activities, and robust e-commerce growth in both Pet and Garden segments.

• Operating income surged to $28 million from $8–$8.4 million, reflecting higher sales, improved margins, and lower SG&A expenses.

• Continued progress on cost and productivity initiatives, including the Cost & Simplicity program and footprint rationalization.

• E-commerce now accounts for 28% of Pet segment sales, offsetting brick-and-mortar declines.

• Confidence in the fiscal 2025 outlook and guidance reaffirmed despite external uncertainties.

Financial highlights

• Net sales increased 3–3.5% year-over-year to $656–$656.4 million, with gross profit rising to $195.7–$196 million and gross margin up 160 basis points to 29.8%.

• Operating income was $28 million, up from $8–$8.4 million, and operating margin improved by 300 basis points to 4.3%.

• Net income was $14 million, compared to $0.4–$0.43 million in the prior year; EPS was $0.21 versus $0.01.

• Adjusted EBITDA reached $55–$61.3 million, up from $37–$54.2 million year-over-year.

• SG&A expense decreased 2% year-over-year; as a percentage of sales, down 140 basis points to 25.5%.

Outlook and guidance

• Fiscal 2025 non-GAAP EPS guidance reaffirmed at $2.20 or higher.

• Q2 expected to be softer due to shipment timing and strong prior-year comparison.

• CapEx planned at $60–$70 million for the year, focused on productivity, maintenance, and IT upgrades.

• Guidance assumes proposed tariffs and excludes impacts from potential acquisitions, divestitures, or restructuring.

• Liquidity expected to be adequate for working capital, capital spending, and other needs for the next 12 months and beyond.