Central Garden & Pet Company · NASDAQ:CENT
Central Garden & Pet — Q3 2025 Earnings Presentation
25 slides from Central Garden & Pet's earnings presentation, Aug 6, 2025
Slide 1: Q3 FY2025 Investor Presentation
Q3 FY2025 Investor Presentation 8.6.2025
Slide 2: Key Themes & Outlook
Key Themes & Outlook Niko Lahanas, CEO Financials & Segments Brad Smith, CFO Management Q&A Niko Lahanas, Brad Smith, J.D. Walker, John Hanson Q3 FY25 Investor Presentation 2
Slide 3: Forward-looking Statements
Forward-looking Statements The statements contained in this presentation which are not historical facts, including statements concerning productivity initiatives and earnings guidance for fiscal 2025, are forward-looking statements that are subject to risks and uncertainties that could cause actual
Slide 4: Niko Lahanas
Niko Lahanas CEO Q3 FY25 Investor Presentation 4
Slide 5: Three Key Themes
Three Key Themes 1 2 3 Further Solid Reaffirming Progress in Third Quarter Fiscal Year Optimizing Performance Guidance Operations Q3 FY25 Investor Presentation 5
Slide 6: Solid FY25 Q3 Performance
Solid FY25 Q3 Performance Record Major Q3 and YTD Significant Margin Improvement in GAAP and Expansion Workplace Safety Non-GAAP EPS Performance Q3 FY25 Investor Presentation 6
Slide 7: Continued Progress on Cost and Simplicity Journey
Continued Progress on Cost and Simplicity Journey Logistics Footprint Operations • Consolidating two outdated DC's • Completed sale of U.K. operations' • Streamlined assortment, exited into a new, modern DTC-enabled aquatic brands, transitioned U.S. unprofitable markets and facility in Salt Lake Cit
Slide 8: Fiscal 2025 Outlook
Fiscal 2025 Outlook Risk & Market Considerations • Tariffs and escalated geopolitical tensions • Heightened macroeconomic uncertainty Reaffirming fiscal 2025 • Inflationary headwinds expected to intensify non-GAAP EPS guidance • Additional pressure on consumer confidence of approximately $2.60 • Inc
Slide 9: Central To Home Strategy
Central To Home Strategy OUR PURPOSE Nurture happy and healthy homes OUR MISSION Lead the future of the garden and pet industries… one blade of grass and one wagging tail at a time STRATEGIC PRIORITIES CONSUMER CUSTOMER CENTRAL COST CULTURE Build and grow Win with winning Fortify Reduce Cost to Stre
Slide 10: Priorities for 2025
Priorities for 2025 Execute Central to Home Strategy with Excellence ▪ Focus on Cost and Cash management ▪ Targeted investments in eCommerce, digital technology and innovation to drive organic growth ▪ M&A to advance growth priorities and advance capabilities Q3 FY25 Investor Presentation 10
Slide 11: Brad Smith
Brad Smith CFO Q3 FY25 Investor Presentation 11
Slide 12: Solid FY25 Q3 Performance - GAAP
Solid FY25 Q3 Performance - GAAP Net Sales Gross Margin Operating Income GAAP EPS (in $ millions) (as a percentage (in $ millions) (in $) of Net Sales) (4)% +280bps +17% +28% Q3 FY25 Investor Presentation 12
Slide 13: Solid FY25 Q3 Performance - Non-GAAP
Solid FY25 Q3 Performance - Non-GAAP Net Sales Non-GAAP Non-GAAP Non-GAAP (in $ millions) Gross Margin Operating Income EPS (as a percentage (in $ millions) (in $) of Net Sales) (4)% +190bps +9% +18% Q3 FY25 Investor Presentation 13
Slide 14: FY25 Q3 Pet Segment Performance
FY25 Q3 Pet Segment Performance Results Tailwinds & Successes Headwinds • Net sales: $493 million • Growth in Professional • Exit of lower margin • Non-GAAP operating and Distribution business durable products and margin: 15.8%, • Held share overall with customers down 60 bps due to gains in Dog Che
Slide 15: FY25 Q3 Garden Segment Performance
FY25 Q3 Garden Segment Performance Results Tailwinds & Successes Headwinds • Continued momentum in Wild Bird, Fertilizer • Net sales: $468 million • Loss of two product lines and Packet Seeds • Non-GAAP operating in third-party garden • Grew share overall with margin: 18.2%, distribution business ga
Slide 16: Improved Cash & Liquidity
Improved Cash & Liquidity Cash & Cash Operating CapEx Share Equivalents Cash Flow (in $ millions) Repurchases (in $ millions) (in $ millions) (in $ millions) +$143 $(21) +1% +$55 Q3 FY25 Investor Presentation 16
Slide 17: Strong Balance Sheet Positions for Strategic M&A
Strong Balance Sheet Positions for Strategic M&A Long-Term Gross Leverage Borrowings on $750MM Debt Ratio (1) ABL Credit Facility (in $ millions) Q3 FY25 Investor Presentation (1) Calculated as Indebtedness / Adj. EBITDA as defined by the Company's ABL credit agreement 17
Slide 18: Q&A Session
Q&A Session Niko Lahanas Brad Smith John Hanson JD Walker President, President, CEO CFO Pet Consumer Products Garden Consumer Products Q3 FY25 Investor Presentation 18
Slide 19: Appendix
Appendix IF CENTRAL GARDEN & PET
Slide 20: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures We report our financial results in accordance with GAAP. However, to supplement the financial results prepared in accordance with GAAP, we use non-GAAP financial measures including non-GAAP net income and diluted net income per share, non-GAAP operating income, and
Slide 21: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures The reconciliations of these non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are shown in the tables below. Non-GAAP financial measures reflect adjustments based on the following items: • Facilit
Slide 22: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures From time to time in the future, there may be other items that we may exclude if we believe that doing so is consistent with the goal of providing useful supplemental information to investors and management. 1. During the third quarter of fiscal 2025, we recognized
Slide 23: GAAP to Non-GAAP Reconciliation for the Fiscal Quarter Ended
GAAP to Non-GAAP Reconciliation for the Fiscal Quarter Ended (in thousands, except for per share amounts) Net Income & Diluted Net Income Per Share Reconciliation June 28, 2025 June 29, 2024 GAAP net income attributable to Central Garden & Pet Company $ 95,007 $ 79,724 Facility closures & business e
Slide 24: GAAP to Non-GAAP Reconciliation for the Fiscal Quarter Ended
GAAP to Non-GAAP Reconciliation for the Fiscal Quarter Ended (in thousands) Operating Income Reconciliation Pet Segment Operating Income Reconciliation June 28, 2025 June 28, 2025 June 29, 2024 GAAP Facility closures(1) Non-GAAP GAAP operating income $ 76,199 $ 83,068 Net sales $ 960,913 $ — $ 960,9
Slide 25: GAAP to Non-GAAP Reconciliation for the Fiscal Quarter Ended
GAAP to Non-GAAP Reconciliation for the Fiscal Quarter Ended (in thousands) Adjusted EBITDA Reconciliation June 28, 2025 June 29, 2024 Net income attributable to Central Garden & Pet Company $ 95,007 $ 79,724 Interest expense, net 8,843 10,216 Other income (1,069) (225) Income tax expense 31,941 25,
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