Central Garden & Pet reports loss in Q4

Central Garden & Pet (Central), the lawn and garden and pet products supplier, reported fourth quarter 2022 sales decreased 4% to $707 million compared to $739 million in the fourth quarter of fiscal 2021.

Net sales for the Pet segment were $440 million, a decrease of 4% compared to the prior year, unfavorably impacted by SKU rationalization and the purposeful decision to exit low-profit private label product lines, the Walnut Creek, Calif.-based company said.

In the lawn and garden segment, net sales were $268 million, a decrease of 4% compared to the prior year quarter, due to softness across most of the Garden portfolio, partially offset by continued strength in wild bird, packet seeds and grass seed.

Central also posted a net loss of $2 million for the period compared to a net loss of $3 million in the fourth quarter of fiscal 2021.

For the full year, Central reported $3.3 billion, an increase of 1% compared to the prior year, driven by the company's recent acquisitions. Organic sales fell 3%, however.

Sales for the pet segment were $1.9 billion for the year, which is a decrease of 1% compared to a year ago. Sales for the garden segment increased 4% to $1.5 billion for the year compared to $1.4 billion in the prior year.

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The Bottom Line: Central Garden & Pet posts a $2 million loss in the fourth garden as sales sag 4% in both of the company’s primary categories.

What the CEO said:  "Central delivered solid fiscal 2022 results in a challenging environment characterized by poor weather during the peak garden season, high inflation, evolving consumer behavior and unfavorable retailer inventory dynamics,”said Tim Cofer, CEO of Central Garden & Pet. "While the near-term economic outlook remains volatile and likely unfavorable, we remain confident in the fundamental trends that support growth in the Garden and Pet industries, the competitive strength of Central and our Central to Home strategy."

Company info: Click here to read the full fourth quarter and year-end 2022 financial report from Central Garden & Pet.