Business
Central Garden & Pet Announces Q1 Fiscal 2023 Financial Results
Fiscal 2023 Q1 net sales of $628 million Fiscal 2023 Q1 loss per share of $0.16 Maintains outlook for fiscal 2023 EPS of $2.60 to $2.80 WALNUT CREEK,
About this update from Central Garden & Pet Company
[{"type":"text","content":"\nFiscal 2023 Q1 net sales of $628 million\n\nFiscal 2023 Q1 loss per share of $0.16\n\nMaintains outlook for fiscal 2023 EPS of $2.60 to $2.80\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 financial results for its fiscal 2023 first quarter ended December 24, 2022.\n\n“We delivered first quarter results in line with our guidance which anticipated near-term challenges including the residual impact from last year's poor garden season, higher retailer inventories, softer foot traffic at garden retailers, and broadly higher input costs,” said Tim Cofer, CEO of Central Garden & Pet. “Looking to the rest of the year, we assume a more normal garden season and that inventory dynamics will stabilize, and expect pricing actions and cost control to largely offset inflation. We remain confident in the competitive strength of Central, our team's ability to perform in this difficult environment and the long-term trends supporting growth in the Pet and Garden industries.”\n\nFiscal 2023 First Quarter Financial Results\n\nNet sales were $628 million compared to $661 million a year ago, a decline of 5%.\n\nGross margin was 27.4% compared to 30.0% a year ago. The decline was driven primarily by the Garden segment largely due to cost inflation and unfavorable overhead absorption due to lower sales, partially offset by pricing actions.\n\n\nOperating income was $0.4 million compared to $26 million a year ago, and operating margin was 0.1% compared to 4.0% in the prior year. The operating margin decline was primarily driven by the Garden segment largely due to cost inflation and overhead absorption pressures from lower sales, partially offset by lower commercial spend.\n\nNet interest expense of $14 million was in line with the prior year quarter.\n\nThe Company's net loss was $8 million compared to net income of $9 million a year ago. Loss per share was $0.16 compared to earnings per share of $0.16 in the prior year quarter. Adjusted EBITDA was $29 million compared to $52 million a year ago.\n\nThe Company’s effective tax rate was 24.2% compared to 20.7% in the prior year quarter.\n\nPet Segment Fiscal 2023 First Quarter Results\n\nNet sales for the Pet segment were $416 million compared to $436 million in the p...