Central Garden & Pet Company · NASDAQ:CENT
Central Garden & Pet — Q1 2023 Earnings Presentation
17 slides from Central Garden & Pet's earnings presentation, Jan 31, 2023
Slide 1: Q1 FY2023 Investor Presentation
Q1 FY2023 Investor Presentation 1.31.2023
Slide 2: Business & Industry Update, Financials, Outlook, Q&A
Business & Industry Update Tim Cofer, CEO Q1 FY23 Financials, FY23 Outlook Niko Lahanas, CFO Management Q&A Tim Cofer, Niko Lahanas, J.D. Walker, John Hanson Q1 FY23 Investor Presentation 2
Slide 3: Forward-looking Statements
Forward-looking Statements This presentation includes “forward-looking statements.” Forward-looking statements include statements concerning our plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, plans or intentions relating to acquisitions, ou
Slide 4: Central Garden & Pet
IFS CENTRAL GARD
Slide 5: Three Key Messages
Three Key Messages 1 2 3 Challenging Q1 in line Full-year EPS guidance Our longer-term outlook with guidance remains $2.60 to $2.80 continues to be favorable NET SALES $628MM Q1 is smallest quarter due to Pet & Garden are dynamic seasonality of Garden growth categories GROSS MARGIN 27.4% 85% of Gard
Slide 6: Pet: $416 million Q1 FY23 Net Sales
Pet: $416 million Q1 FY23 Net Sales Headwinds & Challenges Tailwinds & Successes • Retailer inventory de-stocking • POS grew 6% vs PY • Continuing SKU rationalization and • Robust sales growth in Dog & Cat and exit of low-margin pet beds negatively Outdoor cushions impacting sales growth • Market sh
Slide 7: Garden: $212 million Q1 FY23 Net Sales
Garden: $212 million Q1 FY23 Net Sales Headwinds & Challenges Tailwinds & Successes • Unfavorable overhang from last year's poor • POS increased LSD vs PY, lapping strong garden season 14% growth in POS in PY ◦ higher inventory levels • Market share grew in Grass Seed and Wild ◦ unfavorable fixed-co
Slide 8: 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 OUR STRATEGIC PILLARS CONSUMER CUSTOMER CENTRAL COST CULTURE Build and Win with winning Fortify Reduce Cost to Strengthen our grow brands Customers and the Central improv
Slide 9: Tim Cofer, CEO; Niko Lahanas, CFO
Tim Cofer Niko Lahanas CEO CFO Q1 FY23 Investor Presentation 9
Slide 10: FY23 Q1 Performance: In Line With Our Guidance
FY23 Q1 Performance: In Line With Our Guidance Net Sales Gross Margin Operating Income EPS (in $ millions) (as a percentage of Net Sales) (in $ millions) (in $) Q1 FY23 Investor Presentation 10
Slide 11: Central Garden & Pet
IFS CENTRAL GARD
Slide 12: Strong Financial Metrics
Strong Financial Metrics Adjusted EBITDA Long-Term Debt Total Leverage (1) (in $ millions) (in $ millions) Q1 FY23 Investor Presentation (1) Calculated as Indebtedness / Adj. EBITDA as defined by the Company's ABL credit agreement 12
Slide 13: FY23 Outlook
Ongoing macroeconomic uncertainty FY23 Outlook • Continued broad-based cost inflation, albeit moderating • Retail inventory de-stocking • Consumer behavior in potential recession Strong fundamentals of Central and our industries • Favorable trends support long-term growth in Pet and Garden • Central
Slide 14: Q&A
Q&A Please reach out to us with any comments or questions: IR@Central.com (925) 412-6726 Q1 FY23 Investor Presentation 14
Slide 15: Appendix
Appendix IF CENTRAL GARDEN & PET
Slide 16: Notes & Disclosures
Notes & Disclosures Use of Non-GAAP Financial Measures We report our financial results in accordance with accounting principles generally accepted in the United States (GAAP). However, to supplement the financial results prepared in accordance with GAAP, we use non-GAAP financial measures including
Slide 17: 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) December 24, 2022 December 25, 2021 Adjusted EBITDA Reconciliation Net income (loss) attributable to Central Garden & Pet Company $ (8,433) $ 9,009 Interest expense, net 13,776 14,408 Other inco
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