Central Garden & Pet Company (CENT) Q4 2024 earnings summary

Executive summary

• Achieved growth in non-GAAP EPS and gross margin expansion in fiscal 2024, with strong pet segment profits and record operating cash flow despite soft demand and a challenging environment.

• Advanced Cost and Simplicity program, consolidating operations, optimizing logistics, and embedding sustainability goals.

• Maintained disciplined cost and cash management, targeted investments in e-commerce and innovation, and a focused M&A approach.

• Entering fiscal 2025 with a focus on cost discipline, targeted investments, and a cautious outlook due to macroeconomic, competitive, and weather-related headwinds.

• Fiscal 2024 net sales declined 3% to $3.2 billion, impacted by soft demand in Pet and a challenging garden season.

Financial highlights

• Fiscal 2024 net sales were $3.2 billion, down 3% year-over-year; organic net sales declined 4%.

• Non-GAAP EPS increased to $2.13 from $2.07, above guidance; GAAP EPS was $1.62, down from $1.88.

• Non-GAAP gross profit was $960 million, with gross margin up 110 bps to 30%.

• Adjusted EBITDA for the year was $334 million, down from $343 million.

• Fourth quarter net sales were $669 million, down 11% year-over-year; non-GAAP operating loss was $11 million.

Outlook and guidance

• Fiscal 2025 non-GAAP EPS is guided to $2.20 or better, reflecting confidence in strategy but acknowledging headwinds.

• Q1 non-GAAP loss per share expected to be $0.05 or better, with Q1 being a seasonally small quarter.

• CapEx planned at $60–$70 million, focused on maintenance, productivity, and new product pipelines.

• Anticipates a challenging external environment with consumer pressure, increased competition, and weather volatility.