Central Garden & Pet Company · Q1 2020 earnings

Briefing

Central Garden & Pet's first quarter performance was in line with expectations, with sales increasing due to acquisitions but offset by headwinds such as customer purchase timing and business exits, resulting in a net loss.

Central Garden & Pet Company reported a 4.5% increase in net sales to $482.8 million for the fiscal first quarter of 2020, driven by recent acquisitions. However, the company experienced a net loss of $4.4 million, or $0.08 per share, compared to a net income of $1.8 million, or $0.03 per share, in the same quarter last year. The results were impacted by factors such as unfavorable product mix, lower volumes, and increased expenses.

• Net sales increased by 4.5% to $482.8 million, primarily driven by acquisitions.
• The company's net loss was $4.4 million, resulting in a loss per share of $0.08.
• Gross margin declined by 100 basis points to 27.2% due to unfavorable product mix and lower volumes.
• The company continues to expect fiscal 2020 earnings per diluted share to be at, or modestly above, the $1.61 earned in the prior year.

Headline financials

Revenue & EPS history

The Company continues to expect fiscal 2020 earnings per diluted share to be at, or modestly above, the $1.61 earned in the prior year. The guidance is inclusive of significant incremental investment intended to support sustainable organic growth in the years ahead.