NASDAQ$CENTA

Central Garden & Pet Company · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Net sales increased, but earnings decreased due to rising costs and strategic investments.

Central Garden & Pet reported a net sales increase of 9% to $739 million, driven by acquisitions. However, the company experienced a net loss of $3.0 million, or $0.06 per share, compared to a net income of $14 million, or $0.25 per share, in the prior year quarter due to rising costs and strategic investments.

  • Net sales increased 9% to $739 million, driven by acquisitions.
  • Organic sales declined 1% due to unprecedented growth in the prior year quarter.
  • The company reported a net loss of $3.0 million, or $0.06 per share.
  • Operating margin decreased due to rising costs for key commodities, freight, and labor, as well as heightened strategic investment spending.

Headline financials

Total Revenue

$739M

Previous: $676M+9.3%
EPS (adj)

-$0.05

Previous: $0.20-125.0%
Capital Expenditures

$23.3M

Previous: $16.3M+43.2%
Free Cash Flow

$48.9M

Previous: $159M-69.2%
Net Income

-$3.01M

Previous: $13.6M-122.1%
Operating Income

$9.61M

Previous: $25.2M-61.8%
Gross Profit

$213M

Previous: $196M+8.5%
Cash & Equivalents

$426M

Previous: $653M-34.7%
Total Assets

$3.12B

Previous: $2.34B+33.2%
Stock-Based Comp

$6.09M

Previous: $4.94M+23.2%

Revenue & EPS history

Central Garden & Pet · Revenue · Quarterly

$739M

Q4 2021+9.3%vs Q4 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Central Garden & Pet · $750M total across 2 segments · Q4 2023

  • Pet Segment
    $483M+9.8%
  • Garden Segment
    $267M-0.4%

Forward guidance

The Company currently projects fiscal 2022 GAAP EPS of $3.10 or better. The outlook includes the Company's anticipated investments in capacity expansion and automation at or slightly above fiscal 2021 levels, increased investments in brand building and eCommerce to drive sustainable growth, increasing costs for key commodities, freight and labor, muted consumer demand patterns following extraordinary demand spanning the last two fiscal years, as well as pricing actions across the Company's portfolio to help mitigate inflationary headwinds. The Company expects the impact of the headwinds to be more heavily front-half weighted.

Tailwinds

  • Anticipated investments in capacity expansion and automation at or slightly above fiscal 2021 levels
  • Increased investments in brand building
  • Increased investments in eCommerce to drive sustainable growth
  • Pricing actions across the Company's portfolio to help mitigate inflationary headwinds

Headwinds

  • Increasing costs for key commodities
  • Increasing costs for freight
  • Increasing costs for labor
  • Muted consumer demand patterns following extraordinary demand spanning the last two fiscal years
  • The impact of the headwinds to be more heavily front-half weighted

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 Q4 2021

Historical avgQ4 2021

-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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