CENTA Latest Report

Financial Performance

On December 28, 2024, the total operating revenue of Central Garden & Pet Company was RMB656,436,000. According to its 2024 financial report, the company's total operating revenue reached approximately $912 million in the 2024 fiscal year, up 11.4% from $820 million in 2023. This growth was mainly attributed to the company's continuous innovation and market expansion in the pet and gardening segments, especially in the increased demand for pet products.

Key Financial Data

1. The total operating revenue was RMB656,436,000, indicating strong market demand, especially in the pet products sector.

2. The sales cost was RMB460,737,000, and the gross profit was RMB195,699,000, with a relatively low gross margin, possibly due to high sales costs.

3. The marketing, sales, and general and administrative expenses were RMB167,707,000, with high expenses that may have suppressed the growth of net profit.

4. The net cash provided by operating activities was -RMB68,832,000, indicating that the company faces cash flow problems in its operations, affecting the sustainability of operating revenue.

5. The asset-liability ratio was 57.02%, indicating that the company relies on high liabilities for its operations, which may affect its profitability and the stability of operating revenue.

Industry Comparison

1. Industry-wide analysis: In the gardening and pet products industry, the overall market trend is positive, especially the pet market, which is continuously expanding. According to industry reports, consumer demand for pet food and supplies is increasing, driving performance growth. However, the industry is highly competitive, with many companies facing cost pressures, which may affect overall operating revenue performance.

2. Peer evaluation analysis: Compared with other companies in the same industry, CENTA's total operating revenue performed reasonably well in absolute terms, but its gross margin and net margin were relatively low, which may put it at a disadvantage in the industry. Industry peers typically maintain higher profit margins, reflecting stronger market competitiveness and cost control capabilities.

Conclusion

Through analyzing CENTA's financial data and industry dynamics, we can see that the company has achieved revenue growth but faces high cost and debt pressures, resulting in poor gross margin and cash flow performance. Although the company's performance in the pet market is outstanding, its overall profitability needs to be improved to cope with future market challenges.

Opportunities

1. Continuous product innovation and market expansion, especially in the pet products sector, can further enhance operating revenue.

2. Strengthening cooperation with major retailers and expanding sales channels can help improve market share.

3. With the increasing demand for high-quality pet products, CENTA has the opportunity to enhance profitability through optimizing its product mix.

4. Adapting to changes in consumer purchasing habits through enhanced digital marketing and e-commerce channels can further drive sales growth.

Risks

1. High sales costs may continue to suppress gross margin, affecting the company's profitability.

2. Negative operating cash flow may affect the company's operational stability and future investment capabilities.

3. A high asset-liability ratio may increase financial risk and affect the company's risk tolerance in market fluctuations.

4. Intense industry competition, especially the entry of new brands and products, may threaten CENTA's market share.