Central Garden & Pet’s pet sales rise 5% in Q2

Net sales in Central Garden & Pet’s pet portfolio grew 5% year-over-year (YoY) to $477 million (€421.3M) for the second quarter of fiscal year (FY) 2026, ended 28 March.

According to the company, growth was driven mainly by the consumables segment, which reported mid-single-digit growth. The consumables sector, which includes rawhide, dog treats, flea & tick, pet bird and professional categories, also gained market share during the period.

Furthermore, the shift of outdoor cushion shipments from the first quarter to the second quarter improved the durables segment’s performance.

Operating figures

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 18.6% YoY to $89 million (€78.6M), while adjusted EBITDA margin improved to 18.6% from 16.6% in Q2 FY2025.

Operating income rose approximately 28% to $78 million (€68.9M), with operating margin reaching 16.3%, compared to 13.4% in the same period last year.

H1 performance

During the first half (H1) of FY2026, Central registered incremental expenses of $0.7 million (€0.6M) related to the closure of a sales and logistics facility in Pennsylvania.

Total facility closure costs for the period amounted to $732,000 (€646,000), significantly lower than the $5.3 million (€4.7M) recorded in the prior year.

Generally accepted accounting principles (GAAP) operating income rose to $127.6 million (€112.7M), up 14% YoY. Sales were up 1% versus last year, with durables accounting for 18% of category revenue.

Additionally, at the end of Q2, Central entered into a strategic partnership with Phillips Pet Food & Supplies to establish a new pet distribution business. Under the partnership, Central will retain a 20% ownership stake, while Phillips and its existing investors will hold the remaining 80%, with the business operating as an independent entity under the Phillips brand.

New products and scaled capabilities

Central is launching new branded and private-label products in its pet segment, including Nylabone dog chews made with real meat and Farnam’s Endure Gold Killer Fly & Mosquito Control Spray for horses.

John Edward Hanson, President of Central’s Pet Consumer Products, states that they are seeing a shift in channels. “The consumer is going into mass, club and e-commerce to some degree, even more so to get the value pricing, but the value seeking is there,” he says.

In addition, Central is consolidating TDBBS manufacturing into its dog-and-cat platform in New Jersey to scale its capabilities. TDBBS is a Virginia-based provider of premium natural dog chews and treats that the company acquired in November 2023.

Company-wide results

Overall, the company’s net sales reached $906 million (€800M), a 9% increase YoY. Net income grew 22% to $79 million (€69.8M), supported by growth in the pet and garden segments.

Gross margin expanded by 30 basis points to 33.1%. Brad Smith, the company’s CFO, notes that the improvement was supported by productivity gains across both segments and a favorable mix in pet, which helped offset higher manufacturing costs and a lower-margin sales mix in garden.

Full-year guidance

Central expects non-GAAP diluted EPS of $2.70 (€2.38) or better for FY2026, supported by continued margin discipline, ongoing investment in growth initiatives and portfolio optimization.

Capital expenditures are projected to be approximately $50 million (€44.2M) to $60 million (€53M), focused on maintenance, productivity initiatives and targeted growth investments across both segments.