Central Garden & Pet stuck in a rut with high decline in durables

The consumer and pet products’ distributor Central Garden & Pet recorded a flat trend in its 2023 fiscal year (FY), posting global net sales of $3.3 billion (€3B).

The firm highlighted the strong consumer demand for consumables and the outperformance of private label brands as the successes of their pet portfolio in the year. There was a dip in pet ownership and a “high single digits” decline in durables.

Central’s pet portfolio performed slightly better in the last quarter of the FY, with a 10% increase in sales to $483 million (€442M). The portfolio’s operating income increased to $43 million (€39M), 7% more than in Q4 2022.

Evolving consumer behavior

Interim CEO Beth Springer says they are proud of their achievements. She described the current environment as “challenging” and highlighted “evolving consumer behavior, unfavorable retailer inventory dynamics, high inflation and extreme weather” as some of the downs of the quarter.

Just a few weeks ago, Central Garden & Pet announced the acquisition of premium treat company TDBBS. Springer told investors the takeover would “add scale and e-commerce capabilities” to their “fast-growing dog and cat platform.”