Despite a soft Q4, Central Garden & Pet gains market share in select pet categories

In the fourth quarter (Q4) of 2024, ending 28 September, Central Garden & Pet reported $435 million (€413.4M) in net sales for its pet segment, reflecting a 10% decline from $483 million (€459M) during the same period last year.

The decrease was attributed to an “extra week” in Q4 of financial year (FY) 2023.

Organic net sales for the segment fell by 14% if the impact of the acquisition of premium natural dog treat provider TDBBS is excluded. Operating income dropped to $14.3 million (€13.3M) from $43.2 million (€40.8M) last year.

Quarterly highlights

The Californian retailer cited soft demand across its pet segment. Challenges such as “SKU rationalization and the exit of durable private label products” further constrained growth.

However, branded pet products outperformed private label offerings, point-of-sale (POS) transactions outpaced shipments and growth was observed in e-commerce and online channels.

Additionally, the firm gained market share in categories such as rawhide chews, dog treats and bird supplies.

Full-year performance

For the full FY2024, net sales for the pet segment totaled $1.83 billion (€1.73B), representing a 2% year-on-year (YoY) decline from $1.88 billion (€1.78B) in FY2023. Organic sales dropped by 6%.

Across its business divisions, Central Garden & Pet reported a 3% decrease in global revenue, down to $3.2 billion (€3B) from $3.3 billion (€3.1B) last year.

Operating income also fell to $185 million (€175.8M), with operating margins narrowing from 6.4% to 5.8%.

Strategic outlook for 2025

Despite challenges in 2024, Central Garden & Pet plans targeted investments in “critical capabilities” across both the garden and pet segments.

The company is also exploring strategic mergers and acquisitions while introducing new products to its pet portfolio.

CEO Niko Lahanas expressed confidence in the company’s future-focused strategy, stating, “While we expect the external environment to remain challenging, I am confident we have the right strategy and people in place to deliver profitable growth in fiscal 2025 and for the long-term.”