CENT - Central Garden & Pet Non-GAAP EPS of $1.75 beats by $0.30 revenue of $1.02B misses by $10M

2023-08-02 16:28:48 ET

• Central Garden & Pet press release ( NASDAQ: CENT ): Q3 Non-GAAP EPS of $1.75 beats by $0.30 .
• Revenue of $1.02B (flat Y/Y) misses by $10M .
• Gross margin expanded by 80 basis points to 31.1% from 30.3% a year ago, and by 160 basis points to 31.9% on a non-GAAP basis. The gross margin expansion was driven by improved pricing, cost management and favorable product mix.

• Operating income increased 8% to $123 million from $114 million a year ago, and 20% to $137 million on a non-GAAP basis. Operating margin expanded by 80 basis points to 12.0% from 11.2% in the prior year, and by 220 basis points to 13.4% on a non-GAAP basis. The operating margin expansion was driven by improved gross profit and reduced commercial spend to align with demand.

• Net interest expense was $13 million compared to $14 million in the prior year quarter.

• The Company's net income increased 10% to $83 million from $75 million a year ago, and 24% to $94 million on a non-GAAP basis. Earnings per share increased $0.17 to $1.56 from $1.39 in the prior year, and $0.36 to $1.75 on a non-GAAP basis. Adjusted EBITDA increased 17.3% to $166 million from $141 million in the prior year.

• The Company’s effective tax rate was 24.4% compared to 23.7% in the prior year quarter.

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