Central Garden & Pet Revises Outlook for Fiscal 2022 GAAP EPS
Central Garden & Pet Company (NASDAQ: CENT, CENTA) has revised its fiscal 2022 GAAP EPS guidance to be at or above last year’s $2.75, primarily due to challenges in the Garden segment. High inflation, geopolitical tensions, and poor weather have negatively impacted commodities and consumer demand, leading to a disappointing Garden season. Despite these setbacks, the company remains confident in its Central to Home strategy and plans for long-term growth in the Pet and Garden sectors, backed by investments in innovation and eCommerce.
- GAAP EPS expected to be at or above $2.75, indicating potential stability.
- Confidence in long-term profitable growth through Central to Home strategy.
- Investments planned in capacity expansion and brand building.
- Lower outlook primarily driven by the poor Garden season.
- High inflation and geopolitical developments affecting costs.
- Decline in consumer demand patterns post-pandemic leading to softness in sales.
Fiscal 2022 GAAP EPS now expected to be at or above prior year
Lower outlook driven primarily by poor Garden season
Confident in Central to Home Strategy and long-term profitable growth in Pet and Garden
“The operating environment continues to be extremely challenging, with high inflation and geopolitical developments unfavorably impacting commodities, labor and freight, significant pricing actions and growing economic uncertainty. As we indicated in early May, the garden season had a late start. Poor weather conditions continued and that, coupled with reduced foot traffic and changing inventory expectations from our customers, led to softness across most of our Garden portfolio, driving the vast majority of the revised guidance,” said
“While it’s disappointing to not deliver on our original outlook, we nonetheless expect to deliver GAAP EPS at or above prior year, despite the uncertain and inflationary economic environment and two years of extraordinary growth. Importantly, we are confident our Central to Home strategy and the investments we are making will drive profitable long-term growth and allow us to capture opportunities in both the Pet and Garden industries.”
The Company now expects fiscal 2022 GAAP EPS to be at or above prior year GAAP EPS of
The Company will provide further details during its fiscal 2022 Q3 earnings call scheduled for
About
Safe Harbor Statement
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release which are not historical facts, including earnings guidance for fiscal 2022, expectations for increased levels of investment to drive capacity expansion, brand building and eCommerce, increases in labor and freight cost as well as key commodities, the accretive expectations for recent acquisitions, a return to more normalized consumer demand patterns, in addition to resuming more normal levels of travel, and their impact on future growth, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. All forward-looking statements are based upon the Company’s current expectations and various assumptions. There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in this release including, but not limited to, the following factors:
- inflation and other adverse macro-economic conditions;
- fluctuations in market prices for seeds and grains and other raw materials;
- our ability to successfully manage the continuing impact of COVID-19 on our business, including but not limited to, the impact on our workforce, operations, fill rates, supply chain, demand for our products and services, and our financial results and condition;
- the potential for future reductions in demand for product categories that benefited from the COVID-19 pandemic, including the potential for reduced orders as retailers work through excess inventory;
- adverse weather conditions;
- our inability to pass through cost increases in a timely manner;
- the success of our Central to Home strategy;
- risks associated with our acquisition strategy, including our ability to successfully integrate acquisitions and the impact of purchase accounting on our financial results;
- fluctuations in energy prices, fuel and related petrochemical costs;
- supply chain delays and disruptions resulting in lost sales, reduced fill rates and service levels and delays in expanding capacity and automating processes;
- seasonality and fluctuations in our operating results and cash flow;
- supply shortages in pet birds, small animals and fish;
- dependence on a small number of customers for a significant portion of our business;
- impacts of tariffs or a trade war;
- consolidation trends in the retail industry;
- declines in consumer spending during economic downturns;
- risks associated with new product introductions, including the risk that our new products will not produce sufficient sales to recoup our investment;
- competition in our industries;
- continuing implementation of an enterprise resource planning information technology system;
- potential environmental liabilities;
- risk associated with international sourcing;
- access to and cost of additional capital;
- potential goodwill or intangible asset impairment;
- our dependence upon our key executives;
- our ability to recruit and retain new members of our management team to support our growing businesses and to hire and retain employees;
- our inability to protect our trademarks and other proprietary rights;
- litigation and product liability claims;
- regulatory issues;
- the impact of product recalls;
- potential costs and risks associated with actual or potential cyber attacks;
- potential dilution from issuance of authorized shares;
- the voting power associated with our Class B stock; and
- the impact of new accounting regulations and the possibility our effective tax rate will increase as a result of future changes in the corporate tax rate or other tax law changes.
These risks and others are described in the Company’s
View source version on businesswire.com: https://www.businesswire.com/news/home/20220622005430/en/
Investor Relations Contact
VP, Investor Relations
(925) 412-6726
fedelmann@central.com
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