Business
Central Garden & Pet Announces Fourth Quarter and Fiscal Year 2023 Financial Results
Fiscal 2023 net sales of $3.3 billion Fiscal 2023 GAAP EPS of $2.35, non-GAAP EPS of $2.59 Expects fiscal 2024 non-GAAP EPS of $2.50 or better WALNUT CREEK,
About this update from Central Garden & Pet Company
[{"type":"text","content":"\nFiscal 2023 net sales of $3.3 billion\n\n\nFiscal 2023 GAAP EPS of $2.35, non-GAAP EPS of $2.59\n\n\nExpects fiscal 2024 non-GAAP EPS of $2.50 or better\n\n\n WALNUT CREEK, Calif.--(BUSINESS WIRE)--\nCentral Garden & Pet Company (NASDAQ: CENT) (NASDAQ: CENTA) (\"Central\"), a market leader in the Pet and Garden industries, today announced results for its fourth quarter and fiscal year ended September 30, 2023.\n\n\n\"We are proud of what Team Central was able to achieve in a challenging environment characterized by evolving consumer behavior, unfavorable retailer inventory dynamics, high inflation and extreme weather. Despite these headwinds, we delivered non-GAAP EPS within our revised fiscal 2023 guidance, successfully turned inventories into cash, generated record cash flow and continued to make progress on our Cost and Simplicity program,\" said Beth Springer, Interim CEO of Central Garden & Pet. \"While the near-term external environment remains challenging, we are confident in the competitive strength of Central, our Team's execution and our Central to Home strategy.\"\n\n\nFiscal 2023 Results\n\n\nNet sales of $3.3 billion were in line with the prior year. Fiscal 2023 benefited from an additional week compared to the prior year.\n\n\nNet sales for the Pet segment of $1.9 billion were in line with the prior year. Net sales for the Garden segment were $1.4 billion compared to $1.5 billion a year ago.\n\n\nGross margin was 28.6% compared to 29.7% in the prior year. On a non-GAAP basis, gross margin was 28.9%. The decrease was due to inflation and lower volumes resulting in unfavorable overhead absorption, partially offset by improved pricing and productivity efforts.\n\n\nOperating income was $211 million compared to $260 million a year ago. On a non-GAAP basis, operating income was $227 million. Operating margin was 6.4% compared to 7.8% in the prior year. On a non-GAAP basis, operating margin was 6.9%. The decrease was due to lower sales and inflation, partially offset by improved pricing and cost reductions.\n\n\nOther income and expense was income of $1.5 million compared to expense of $3.6 million a year ago.\n\n\nNet interest expense was $50 million compared to $58 million in the prior year driven by higher cash balances and interest rates.\n\n\nNet income was $126 million compared to $152 million a year ago. On a no...