Central Garden & Pet ( (CENT) ) has released its Q2 earnings. Here is a breakdown of the information Central Garden & Pet presented to its investors.
Central Garden & Pet Company, a leader in the pet and garden industries, offers a wide range of products aimed at enhancing home environments, from pet care to garden supplies. In its latest earnings report, Central Garden & Pet announced a solid performance for the second quarter of fiscal 2025, with an increase in both GAAP and non-GAAP earnings per share compared to the previous year, despite a decline in net sales. The company reaffirmed its outlook for the fiscal year, maintaining a positive stance amidst challenging market conditions.
The company’s financial results for the quarter showed net sales of $834 million, a 7% decrease from the previous year, while gross profit decreased by 2% to $273 million. However, the gross margin improved by 180 basis points, reaching 32.8%, due to the successful implementation of the Cost and Simplicity program. Operating income remained steady at $93 million, with an operating margin expansion of 80 basis points. The Pet segment saw a 6% decrease in net sales, while the Garden segment experienced a 10% decline, attributed to shifts in customer orders and unfavorable weather conditions.
Central Garden & Pet’s liquidity position improved significantly, with cash and cash equivalents increasing to $517 million, driven by earnings and inventory reduction efforts. The company also repurchased 1.2 million shares during the quarter, reflecting confidence in its long-term strategy. The Cost and Simplicity program continues to drive operational efficiencies, and the company has begun transitioning to a direct-export model for its UK operations.
Looking ahead, Central Garden & Pet remains committed to its fiscal 2025 guidance, expecting non-GAAP EPS of $2.20 or better. The company anticipates challenges due to macroeconomic uncertainties and weather variability but remains focused on executing its Central to Home strategy and optimizing its operations through ongoing initiatives.