CENT Reports Modest Increase in Net Sales for Fiscal 2024 First Quarter
Segments of revenue
In the fiscal 2024 first quarter, CENT reported net sales of $634.5 million, representing a modest increase of $6.8 million or 1.1% compared to the prior year quarter. The Pet segment experienced a decline in sales of $6.6 million, while the Garden segment saw an increase in sales of $13.4 million.
CENT demonstrated strength in its financial performance for the quarter. Gross profit increased by $7.1 million to reach $178.8 million, reflecting a 4.2% growth. The company's gross margin also improved by 80 basis points to 28.2%. This improvement was primarily driven by the Pet segment, although both segments benefited from cost management and moderating inflation. Additionally, CENT successfully reduced its selling, general, and administrative expenses by $0.9 million, resulting in a decrease to 26.9% of net sales.
Despite the overall increase in net sales, the Pet segment experienced a decline of $6.6 million. This decline may pose a challenge for CENT, as it indicates a potential weakness in this particular segment. Further analysis is required to understand the factors contributing to this decline and to develop strategies for improvement.
CENT repurchased approximately 0.1 million shares of its voting common stock and approximately 0.2 million shares of its non-voting Class A common stock during the quarter. This demonstrates the company's commitment to returning value to its shareholders and maintaining a strong capital structure.
CENT reported a modest increase in net sales for the fiscal 2024 first quarter, driven by a $13.4 million increase in the Garden segment, partially offset by a $6.6 million decline in the Pet segment. The company demonstrated strength in its financial performance, with an increase in gross profit and improvement in gross margin. However, the decline in the Pet segment sales poses a challenge for CENT. Overall, CENT's performance in the quarter reflects a balanced revenue growth strategy and effective cost management.