Central Garden & Pet Company · Q1 2023 earnings

Briefing

Central Garden & Pet reported a net loss for Q1 2023, impacted by garden segment challenges and lower sales.

Central Garden & Pet's Q1 2023 net sales were $628 million, a 5% decrease compared to the previous year. The company reported a loss per share of $0.16, contrasting with the earnings per share of $0.16 in the prior year quarter. The results were influenced by challenges in the garden segment, higher retailer inventories, and increased input costs. The company maintains its outlook for fiscal 2023 EPS to be $2.60 to $2.80.

• Net sales decreased by 5% to $628 million compared to the prior year.
• Loss per share was $0.16, compared to earnings per share of $0.16 in the prior year quarter.
• Operating income was $0.4 million, a significant decrease from $26 million in the prior year.
• The decline was driven primarily by challenges in the Garden segment.

Headline financials

Revenue & EPS history

The Company continues to expect fiscal 2023 EPS to be $2.60 to $2.80. This outlook reflects the macroeconomic uncertainty, further cost inflation, evolving consumer behavior and unfavorable retailer inventory dynamics. The outlook includes anticipated pricing actions and productivity initiatives across the Company's portfolio to help mitigate inflation. The Company expects fiscal 2023 capital spending to be significantly below fiscal 2022 levels.