Thu, May 8, 5:22 PM (3 days ago)
**Central Garden & Pet Company (CENT) Q2 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Q2 2025 revenue decreased by $66.6 million (7.4%) to $833.5 million compared to Q2 2024, with both Pet and Garden segments experiencing declines. - **Profit Margins:** Gross margin improved by 180 basis points to 32.8% in Q2 2025, driven by productivity gains and moderating inflation. - **Cash Flow:** Net cash used by operating activities increased by $21.4 million to $115.7 million in the first half of 2025, primarily due to changes in working capital accounts. - **Earnings:** Net income for Q2 2025 was $63.6 million, or $0.98 per diluted share, compared to $62.0 million, or $0.93 per diluted share, in Q2 2024. **Segment Performance:** - **Pet Segment:** Net sales decreased by 5.5% due to timing of customer orders and promotional events. Operating income decreased by 3.3% to $60.6 million. - **Garden Segment:** Net sales decreased by 9.5% due to delayed garden season and loss of third-party product lines. Operating income increased by 3.0% to $58.7 million. **Trends & Uncertainties:** - **Inflation:** Inflation has moderated, benefiting margins, but tariffs and trade wars pose future risks. - **Weather & Seasonality:** Garden segment sales are highly seasonal and weather-dependent. - **Acquisitions:** The company continues to evaluate potential acquisitions, which may require additional capital. **Future Operations:** - **Stock Repurchases:** The company repurchased $38.7 million worth of shares in the quarter ended March 29, 2025. - **Capital Expenditures:** Anticipated capital expenditures for fiscal 2025 are approximately $60 million, with $17 million invested through March 29, 2025. - **Debt:** Total debt outstanding was $1,190.8 million as of March 29, 2025, with compliance with all financial covenants. **Liquidity & Capital Resources:** - **Credit Facility:** The company has a $750 million credit facility with net availability of approximately $706 million as of March 29, 2025. - **Liquidity:** The company expects adequate liquidity to meet working capital, capital spending, and other cash needs for at least the next 12 months.