Central Garden & Pet Company · NASDAQ:CENT
Central Garden & Pet — Q4 2024 Earnings Presentation
23 slides from Central Garden & Pet's earnings presentation, Nov 25, 2024
Slide 1: Q4 & FY 2024 Investor Presentation
Q4 & FY 2024 Investor Presentation 11.25.2024
Slide 2: Key Messages
Key Messages Niko Lahanas, CEO Q4 & FY24 Results, FY25 Outlook Brad Smith, CFO Q&A Session Niko Lahanas, Brad Smith, J.D. Walker, John Hanson Q4 and FY24 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 evolving consumer demand and unfavorable retailer dynamics, productivity initiatives and estimated capital spending, and earnings guidance for fiscal 2025, are for
Slide 4: Niko Lahanas, CEO
Niko Lahanas CEO Q4 and FY24 Investor Presentation 4
Slide 5: Three Key Themes
Three Key Themes Significant achievements Meaningful progress on Cost Guiding FY25 non-GAAP EPS despite challenges and Simplicity program to be $2.20 or better • Growth in non-GAAP EPS Q4 initiatives: • Staying disciplined on cost & cash • Continued gross margin expansion • Announced further consoli
Slide 6: Brad Smith, CFO
Brad Smith CFO Q4 and FY24 Investor Presentation 6
Slide 7: FY24 Financial Results (GAAP)
FY24 Financial Results (GAAP) Net Sales Gross Margin Operating Income EPS (in $ millions) (as a percentage of Net Sales) (in $ millions) (in $) (3)% +90bps (12)% $(0.26) Q4 and FY24 Investor Presentation 7
Slide 8: FY24 Financial Results (Non-GAAP)
FY24 Financial Results (Non-GAAP) Net Sales Non-GAAP Non-GAAP Non-GAAP EPS (in $ millions) Gross Margin Operating Income (in $) (as a percentage of Net Sales) (in $ millions) (3)% +110bps (2)% +$0.06 Q4 and FY24 Investor Presentation 8
Slide 9: Q4 FY24 Financial Results (GAAP)
Q4 FY24 Financial Results (GAAP) Net Sales Gross Margin Operating Income EPS (in $ millions) (as a percentage of Net Sales) (Loss) (in $) (in $ millions) (11)% (110)bps $(42) $(0.55) Q4 and FY24 Investor Presentation 9
Slide 10: Q4 FY24 Financial Results (Non-GAAP)
Q4 FY24 Financial Results (Non-GAAP) Net Sales Non-GAAP Non-GAAP GAAP EPS Non-GAAP EPS (in $ millions) Gross Margin Operating Income (in $) (in $) (as a percentage of Net Sales) (Loss) (in $ millions) (11)% (60)bps $(23) $(0.26) Q4 and FY24 Investor Presentation 10
Slide 11: Q4 Results - Pet Segment: $435M Net Sales
Q4 Results - Pet Segment: $435M Net Sales Tailwinds & Successes Headwinds & Challenges • POS outpaced shipments in the quarter • Extra week in the prior year • eCommerce and online share growth • Soft demand across Pet segment, particularly in • Brands outperformed private label durable products • M
Slide 12: Q4 Results - Garden Segment: $234M Net Sales
Q4 Results - Garden Segment: $234M Net Sales Tailwind & Successes Headwinds & Challenges • Positive POS trends returned • Foot traffic at home centers improved • Extra week in the prior year • Strong share gains in Grass Seed across all • Grass seed inventory impairment retailers and channels • eCom
Slide 13: Significantly improved Cash & Liquidity
Significantly improved Cash & Liquidity Adj. EBITDA Cash & Cash Long-Term Total Leverage(1) (in $ millions) Equivalents Debt (in $ millions) (in $ millions) (3)% +$265 Q4 and FY24 Investor Presentation (1) Calculated as Indebtedness / Adj. EBITDA as defined by the Company's ABL credit agreement 13
Slide 14: Expect FY25 non-GAAP EPS to be $2.20 or better
Expect FY25 non-GAAP EPS to be $2.20 or better Committed to Central to Home Strategy • Staying disciplined on cost and cash agenda • Making targeted investments in critical capabilities • Maintaining focused approach to strategic M&A • Advancing pipeline of new products across pet and garden portfol
Slide 15: Q&A Session
Q&A Session Please reach out to us with any comments or questions. IR@Central.com (925) 412-6726
Slide 16: Appendix
Appendix GARDEN & PET IF CENTRAL
Slide 17: Use of Non-GAAP Financial Measure
Use of Non-GAAP Financial Measure 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, non-
Slide 18: Use of Non-GAAP Financial Measure
Use of Non-GAAP Financial Measure 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 information to investors and management. The non-GAAP adjustments made reflect the following: Facility closures
Slide 19: GAAP to Non-GAAP Reconciliation for the Fiscal Year Ended
GAAP to Non-GAAP Reconciliation for the Fiscal Year Ended (in thousands, except for per share amounts) Net Income & Diluted Net Income Per Share Reconciliation September 28, 2024 September 30, 2023 GAAP net income attributable to Central Garden & Pet Company $ 107,983 $ 125,643 Facility closures 27,
Slide 20: GAAP to Non-GAAP Reconciliation for the Three Months Ended
GAAP to Non-GAAP Reconciliation for the Three Months Ended (in thousands) Pet Segment Operating Income Reconciliation Three Months Ended September 28, 2024 September 30, 2023 GAAP operating income $ 14,310 $ 43,225 Facility closures (1)(5) 7,549 1,751 Intangible impairments (6)(7) 12,790 2,785 Non-G
Slide 21: GAAP to Non-GAAP Reconciliation for the Fiscal Year Ended
GAAP to Non-GAAP Reconciliation for the Fiscal Year Ended (in thousands) Pet Segment Operating Income Reconciliation Fiscal Year Ended September 28, 2024 September 30, 2023 GAAP operating income $ 203,425 $ 198,004 Facility closures (1)(5) 7,549 15,672 Intangible impairments (6)(7) 12,790 2,785 Non-
Slide 22: GAAP to Non-GAAP Reconciliation for the Fiscal Year Ended
GAAP to Non-GAAP Reconciliation for the Fiscal Year Ended (in millions) Organic Pet Segment Net Sales Reconciliation Fiscal Year Ended September 28, 2024 Net sales Effect of acquisitions & Net sales (GAAP) divestitures on net sales organic Reported net sales FY 2024 $ 1,832.8 $ 66.4 $ 1,766.4 Report
Slide 23: GAAP to Non-GAAP Reconciliation for the Fiscal Year Ended
GAAP to Non-GAAP Reconciliation for the Fiscal Year Ended (in thousands) Adjusted EBITDA Reconciliation September 28, 2024 September 30, 2023 Net income attributable to Central Garden & Pet Company $ 107,983 $ 125,643 Interest expense, net 37,872 49,663 Other expense (income) 5,090 (1,462) Income ta
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