NASDAQ$CENTA

Central Garden & Pet Company · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Net sales increased due to recent acquisitions, and GAAP EPS grew, despite inflationary pressures and heightened investment spending.

Central Garden & Pet reported a solid first quarter, with net sales increasing by 12% to $661 million, driven by recent acquisitions. Diluted GAAP EPS grew to $0.16. The company maintains its outlook for fiscal 2022 diluted GAAP EPS of $3.10 or better.

  • Net sales increased 12% to $661 million, with acquisitions contributing $70 million.
  • Organic sales were in line with the prior year quarter.
  • Diluted GAAP EPS grew $0.06 to $0.16 compared to prior year quarter.
  • The Company continues to expect fiscal 2022 GAAP EPS to be $3.10 or better.

Headline financials

Total Revenue

$661M

Previous: $592M+11.7%
EPS (adj)

$0.13

Previous: $0.23-43.5%
Gross Margin

30.0%

Previous: 27.9%+7.5%
Operating Margin

4.0%

Previous: 4.6%-13.0%
Capital Expenditures

-$24.2M

Previous: -$14.7M-65.1%
Free Cash Flow

-$15.2M

Previous: -$9.05M-68.0%
Net Income

$9.01M

Previous: $5.61M+60.5%
Operating Income

$26.2M

Previous: $27M-3.1%
Gross Profit

$198M

Previous: $165M+19.8%
Cash & Equivalents

$296M

Previous: $608M-51.3%
Total Assets

$3.12B

Previous: $2.45B+27.5%
Stock-Based Comp

$5.19M

Previous: $4.67M+11.1%

Revenue & EPS history

Central Garden & Pet · Revenue · Quarterly

$661M

Q1 2022+11.7%vs Q1 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Central Garden & Pet · $661M total across 2 segments · Q1 2022

  • Pet Segment
    $436M-0.1%
  • Garden Segment
    $225M+44.4%

Forward guidance

The Company continues to expect fiscal 2022 GAAP EPS to be $3.10 or better.

Tailwinds

  • Anticipated pricing actions across the Company's portfolio
  • Investments in capacity expansion
  • Brand building
  • Consumer insights
  • Innovation and eCommerce to drive sustainable growth

Headwinds

  • Increasing costs for commodities
  • Increasing costs for freight
  • Increasing costs for labor
  • Headwinds associated with a return to more normalized consumer demand patterns following extraordinary demand spanning two fiscal years
  • Resuming more historical levels of promotional activity

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.4%

Avg return

Earnings day

+1.7%

Avg return

5 days after

+0.4%

Avg return

30 days after

53%

34 / 64 earnings

Positive

+18.5%

Q1 2016

Best reaction

-22.9%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+3.2%+2.2%+4.9%
Q1 2026+0.0%-1.4%-0.9%
Q4 2025+8.2%+8.2%+3.3%
Q2 2025+0.3%+6.3%+4.4%
Q1 2025-0.9%+0.8%+0.1%
Q4 2024-0.2%+2.9%-1.4%
Q3 2024+5.0%+0.5%+0.7%
Q2 2024+11.9%+11.8%+0.3%
Q1 2024+5.6%+14.6%+6.9%
Q4 2023-10.8%-10.2%+6.6%
Q3 2023+15.6%+12.8%+8.0%
Q2 2023+6.3%+4.0%+2.0%
Q1 2023+4.0%+7.4%+0.0%
Q4 2022-8.8%-9.0%-13.4%
Q3 2022+0.7%+3.2%-11.3%
Q2 2022+0.7%+3.7%+2.7%
Q1 2022+0.3%-6.3%-1.1%
Q4 2021-3.6%-5.4%-2.8%
Q3 2021-3.0%-1.9%-8.0%
Q2 2021+5.8%+5.5%-1.0%
Q1 2021+5.2%+6.3%+11.8%
Q4 2020+1.7%+0.2%-6.1%
Q3 2020+7.1%+6.3%-0.1%
Q2 2020+2.3%+8.4%+10.7%
Q1 2020-1.8%-3.8%-10.8%
Q4 2019-18.4%-16.5%+0.1%
Q3 2019-22.9%-24.1%-12.7%
Q2 2019+4.4%+5.4%+2.6%
Q1 2019-21.0%-22.2%-24.5%
Q4 2018+2.6%+10.0%+4.8%
Q3 2018-0.4%+0.7%-9.4%
Q2 2018+5.4%+9.8%+13.5%
Q1 2018+8.6%+5.4%+7.7%
Q4 2017+3.5%+5.3%+4.1%
Q3 2017+11.7%+11.0%+12.4%
Q2 2017+3.3%+0.2%-6.7%
Q1 2017-4.3%-7.1%+0.6%
Q4 2016+9.0%+12.3%+12.9%
Q3 2016+7.1%+7.7%+6.0%
Q2 2016-2.8%
Q1 2016+18.5%
Q4 2015+14.9%
Q3 2015+3.1%
Q2 2015-4.3%
Q1 2015+3.5%
Q4 2014+4.1%
Q3 2014-0.4%
Q2 2014-7.4%
Q1 2014+7.5%
Q4 2013-11.5%
Q3 2013-13.5%
Q2 2013-12.0%
Q1 2013-2.8%
Q4 2012-13.1%
Q3 2011-4.2%
Q4 2011-4.2%
Q3 2012-6.1%
Q2 2012-7.4%
Q1 2011+1.4%
Q1 2012+4.7%
Q2 2011-3.6%
Q4 2009-3.6%
Q3 2010-14.7%
Q4 2010-14.7%

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