Central Garden & Pet Co (CENT) 2026 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the Central Garden and Pets Fiscal 2026 Second Quarter Earnings Call. My name is Kate, and I will be your conference operator for today.

各位女士、先生，感謝您耐心等候。歡迎參加 Central Garden and Pets 2026 會計年度第二季財報電話會議。我叫 Kate，今天將擔任本次會議的接線員。

(Operator Instructions)

(接線員指示)

I would now like to turn the call over to Frederique Edelman, Vice President, Investor Relations. Please go ahead.

現在我想把電話交給投資人關係副總裁 Frederique Edelman。請開始。

Good afternoon, everyone, and thank you for joining Central's second quarter fiscal 2026 earnings call.

各位下午好，感謝各位參加 Central 2026 會計年度第二季財報電話會議。

Joining me today are Niko Lahanas, Chief Executive Officer Brad Smith, Chief Financial Officer John Hanson, President, Pet Consumer Products. JD Walker, President, Garden Consumer Products and last but not least, Jason Barnes, Executive Vice President, Garden Consumer Products.

今天與我一同出席的有：執行長 Niko Lahanas、財務長 Brad Smith、寵物消費產品總裁 John Hanson。以及花園消費產品總裁 JD Walker，最後但同樣重要的是花園消費產品執行副總裁 Jason Barnes。

Niko will start by sharing today's key takeaways, followed by Brad, who will provide more details of our performance.

Niko 將先分享今天的重點摘要，接著由 Brad 提供我們表現的更多細節。

After their prepared remarks, John, JD and Jason will join us for the Q&A session.

在他們的準備發言之後，John、JD 與 Jason 將加入問答環節。

Before they begin, I would like to remind everyone that all forward-looking statements made during this call are subject to risks and uncertainties that could cause our actual results to differ materially from what those forward-looking statements express or imply today.

在開始之前，我想提醒各位，本次電話會議中所作的所有前瞻性陳述均受風險與不確定性影響，可能導致我們的實際結果與這些前瞻性陳述今日所表達或暗示者存在重大差異。

A detailed description of Central's risk factors can be found in our annual report filed with the SEC.

關於 Central 風險因素的詳細說明，請參閱我們向美國證券交易委員會（SEC）提交的年度報告。

Please note that Central undertakes no obligation to publicly update forward-looking statements to reflect new information, future events or other developments.

另請注意，Central 不承擔公開更新前瞻性陳述以反映新資訊、未來事件或其他發展的義務。

You can find our press release and related materials at ir.central.com.

您可在 ir.central.com 查閱我們的新聞稿及相關資料。

Last but not least, unless otherwise specified, all comparisons discussed during this call are made against the same period in the prior year.

最後但同樣重要的是，除非另有說明，本次電話會議中討論的所有比較均以去年同期為基準。

Should any questions come up after the call or throughout the quarter, don't hesitate to contact me directly at ir@central.com.

若在會後或本季期間有任何問題，歡迎直接透過 ir@central.com 與我聯繫。

And with that, let's begin.

那麼，我們開始。

Thank you.

謝謝。

Frederique, and good afternoon, everyone.

謝謝你，Frederique，各位下午好。

I'll start with highlights from the second quarter. And then walk through how we're thinking about the rest of the year.

我先從第二季的重點開始。接著說明我們如何看待今年剩餘期間。

We delivered a record second quarter and a record first half with clear improvement across the board, higher sales, expanded operating margins, and stronger earnings per share versus last year. That performance reflects resilience across our key categories, the strength of our operating model, and the actions we've taken to sharpen execution.

我們交出創紀錄的第二季與創紀錄的上半年，整體表現明顯改善：銷售更高、營業利潤率擴大、每股盈餘較去年更強。這樣的表現反映了我們核心品類的韌性、營運模式的優勢，以及我們為提升執行力所採取的行動。

At the same time. We're continuing to simplify the business in ways that also strengthen our teams and execution.

同時，我們也持續以簡化業務的方式，進一步強化團隊與執行力。

We've moved our Do My Own business into our Covington Fulfillment Center, which is improving speed, lowering costs and increasing flexibility across the network.

我們已將 Do My Own 業務移入 Covington 配送履約中心（Fulfillment Center），提升速度、降低成本，並提高整體網路的彈性。

We're also consolidating the TDDVS manufacturing into our dog and cat platform in New Jersey to better leverage scale and what we believe are best-in-category capabilities and subsequent to the quarter, we formed a joint venture with the leading U.S. Pet food distributor, Philips Pet Food and Supplies, where we'll retain a 20% ownership stake.

我們也正把 TDDVS 的製造整併至新澤西的犬貓平台，以更好地發揮規模效益，並運用我們認為同級最佳的能力；此外，在本季結束後，我們與美國領先的寵物食品經銷商 Philips Pet Food and Supplies 成立合資企業，我們將保留 20% 的持股。

This is a strategic step, which creates a stronger, more agile, nationwide distribution network, reduces complexity, and allows us to focus more directly on growing our central branded portfolio.

這是一步策略性舉措，可打造更強大、更敏捷的全美配送網路，降低複雜度，並讓我們能更專注於推動 Central 自有品牌組合的成長。

These moves. Build on the cost and simplicity work we've been driving for several years. That work has fundamentally strengthened the business.

這些舉措延續了我們多年來推動的成本與簡化工作。這些工作已從根本上強化了公司。

Today, we're more efficient, more resilient, and a better-run organization.

如今，我們更有效率、更具韌性，也是一個營運更到位的組織。

And that discipline is embedded in how we operate.

而這份紀律已內化在我們的營運方式之中。

With that foundation in place, our focus is squarely on growth and disciplined capital allocation.

在這個基礎到位後，我們的重點明確聚焦於成長與審慎的資本配置。

We're investing where we see the highest returns.

我們把投資放在我們看到最高報酬的領域。

And with our balance sheet and customer relationships, we're well positioned to execute.

憑藉我們的資產負債表與客戶關係，我們具備良好條件來落實執行。

We also advanced our innovation pipeline this quarter. We're bringing forward new products, both branded and private label, that deepen retailer partnerships and connect with consumers.

本季我們也推進了創新產品管線。我們推出新的產品（包含品牌與自有品牌／代工貼牌），以深化與零售商的合作夥伴關係並連結消費者。

In pet, that includes Nylabone dog chews made with Real Meat and Farnum's Indoor Gold Killer Fly Mosquito Control Spray for horses.

在寵物方面，包括以真肉製成的 Nylabone 狗咀嚼零食，以及 Farnum 的 Indoor Gold Killer Fly Mosquito Control Spray（室內金牌殺蠅滅蚊控制噴霧），用於馬匹。

In Garden, our recently launched the Rebel Sun and Shade Extension in Grass Seed, and new private label programs are performing well and delivering above expectations.

在花園方面，我們近期推出的 Rebel 草籽（Grass Seed）日照與遮蔭延伸系列（Sun and Shade Extension），以及新的自有品牌專案表現良好，成果超出預期。

Turning now to our outlook, we enter the back half of the year with momentum and a clear focus on execution.

接著談展望：我們帶著動能進入下半年，並清楚聚焦於執行。

Our diversified portfolio, operational flexibility, and disciplined approach to cost management and capital allocation position us well to deliver profitable growth as the macro backdrop continues to evolve.

我們多元化的產品組合、營運彈性，以及在成本管理與資本配置上的紀律，使我們在總體環境持續演變之際，仍能有利於實現獲利性成長。

The retail environment remains dynamic, with consumers looking for value and performance and continued shifts toward e-commerce and in some categories, private label.

零售環境仍然多變，消費者追求價值與效能，並持續轉向電商；在部分品類中，自有品牌也持續移轉。

We're responding with targeted investments behind our strongest brands. Innovation, and consumer insights, while continuing to strengthen our digital capabilities.

我們以更聚焦的投資來支持我們最強勢的品牌、創新與消費者洞察，同時持續強化我們的數位能力。

These are the right investments. They are gaining traction, positioning us to drive both growth and margin expansion.

這些都是正確的投資。它們正逐步取得成效，讓我們能同時推動成長與利潤率擴張。

While we are still early in our journey, innovation will become a more meaningful contributor as we continue to scale a more streamlined and efficient operating model. M&A remains a key lever. We're taking a disciplined, value-driven approach. Focus on high-quality margin-accretive opportunities that strengthen our portfolio. With our liquidity and flexibility, we're well positioned to act when the right opportunities arise.

雖然我們仍處於旅程的早期階段，但隨著我們持續擴大更精簡且更有效率的營運模式，創新將成為更具意義的貢獻來源。併購（M&A）仍是關鍵槓桿。我們採取審慎、以價值為導向的方法，聚焦於高品質、可提升利潤率的機會，以強化我們的產品組合。憑藉我們的流動性與彈性，一旦出現合適機會，我們具備良好條件採取行動。

On the joint venture, as expected, it will reduce reported revenue in the second-half by a low-teens percentage, but with minimal impact on earnings, given the lower margin profile of that business.

就合資企業而言，如預期，該交易將使下半年報導營收（reported revenue）降低約低十位數百分比，但由於該業務的利潤率較低，對盈餘的影響極小。

Based on our performance and outlook, we are maintaining our guidance for fiscal 2026 non-GAAP diluted EPS of $2.70 or better.

基於我們的表現與展望，我們維持 2026 會計年度非 GAAP 稀釋後每股盈餘（diluted EPS）指引為 2.70 美元或更高。

That reflects both what we've delivered and our confidence in the path ahead.

這反映了我們已交出的成果，以及我們對未來路徑的信心。

As always, this guidance excludes the impact of future acquisitions, divestitures, or restructuring actions.

一如既往，此指引不包含未來收購、處分或重整行動的影響。

Before I hand it over to Brad, I just want to recognize our teams across Central.

在我把電話交給 Brad 之前，我想先向 Central 各地的團隊致意。

Their execution continues to set the pace for the organization. We've built a strong foundation, and we're moving forward with focus, discipline, and a confidence in our ability to deliver long-term growth and value.

他們的執行力持續為整個組織定下步調。我們已建立堅實基礎，並將以專注、紀律，以及對自身交付長期成長與價值能力的信心，持續向前。

And with that, I'll turn it over to Brad. Brad.

那麼，我把電話交給 Brad。Brad。

Thank you, Nico.

謝謝你，Nico。

I'll take a few minutes to walk through how the second quarter came together and share what we're seeing as we move through the year.

我將用幾分鐘說明第二季的表現如何形成，並分享我們在今年推進過程中所觀察到的情況。

Net sales were $906 million, a 9% year-over-year increase driven by growth across both segments and reflecting solid underlying demand, the anticipated shift of shipments from the first quarter into the second, and the benefits of actions we've taken to strengthen the business. Gross profit increased to $300 million from $273 million, with gross margin improving by 30 basis points to 33.1%.

淨銷售額為 9.06 億美元，年增 9%，成長來自兩大事業部門，反映穩健的基本需求、原先預期由第一季遞延至第二季的出貨移轉，以及我們為強化業務所採取行動帶來的效益。毛利由 2.73 億美元增加至 3.00 億美元，毛利率提升 30 個基點至 33.1%。

The prior year included a one-time inventory charge related to the wind-down of our U.K. Operations. Excluding this charge, gross margin was essentially consistent year-over-year, supported by productivity gains across both segments and a favorable mix in PET. Which helped offset higher manufacturing cost and a lower margin sales mix in Garden. SG&A expense was $186 million, up 3% versus the prior year. As a percentage of sales, SG&A was 20.5%, down from 21.6%, reflecting the improved sales leverage, prudent cost management and ongoing simplification of the organization, while continuing to reinvest in key growth initiatives.

前一年包含一筆與我們英國業務逐步結束相關的一次性存貨費用。排除此項費用後，毛利率基本上與去年同期一致，主要受惠於兩個事業部的生產力提升以及 PET 產品組合更有利。這有助於抵銷較高的製造成本以及 Garden 較低毛利的銷售組合。SG&A 費用為 1.86 億美元，較前一年增加 3%。以銷售額百分比計，SG&A 為 20.5%，低於 21.6%，反映銷售槓桿改善、審慎的成本管理與持續精簡組織，同時持續再投資於關鍵成長計畫。

Operating income was $114 million compared with $93 million, and operating margin was 12.6% compared with 11.2%. It's important to step back and look at the first half as a whole, which helps smooth out the noise related to the timing shifts between Q1 and Q2. For the first half, our sales were up 2%, gross margin increased by 70 basis points. And operating income grew 8% versus last year.

營業利益為 1.14 億美元，較 9,300 萬美元增加，營業利益率為 12.6%，高於 11.2%。重要的是退一步從上半年整體來看，這有助於平滑第一季與第二季之間時點移轉所造成的雜訊。上半年，我們的銷售額成長 2%，毛利率提高 70 個基點。營業利益較去年成長 8%。

Both segments contributed to that performance in driving growth in both the top-line and bottom line, and together delivering record operating income for the company, a clear reflection of the strong execution we're seeing across the business.

兩個事業部都對該表現有所貢獻，推動營收與獲利同步成長，並共同為公司帶來創紀錄的營業利益，清楚反映我們在整體業務上所展現的強勁執行力。

Below operating income, the picture remains stable and consistent with solid underlying profitability. Second quarter net interest expense of $9 million was consistent with the prior year. Other expense was $351,000, compared with $744,000 of other income in the prior year.

在營業利益以下的項目方面，整體情況仍然穩定，並與穩健的基礎獲利能力一致。第二季淨利息費用為 900 萬美元，與前一年一致。其他費用為 35.1 萬美元，而前一年為 74.4 萬美元的其他收益。

Net income totaled $79 million, compared with $64 million a year ago.

淨利合計 7,900 萬美元，較一年前的 6,400 萬美元增加。

We delivered record Q2 diluted earnings per share of $1.28, exceeding both prior year and our expectations, reflecting strong execution and the underlying strength of the business.

我們第二季稀釋後每股盈餘創下 1.28 美元的紀錄，超越前一年及我們的預期，反映強勁的執行力與業務的內在韌性。

Adjusted EBITDA for the quarter was $139 million compared to $123 million. Adjusted EBITDA margin for the quarter was 15.4% compared to 14.8%. Our effective tax rate for the quarter was 23.5% in line with the prior year.

本季調整後 EBITDA 為 1.39 億美元，較 1.23 億美元增加。本季調整後 EBITDA 利潤率為 15.4%，高於 14.8%。本季有效稅率為 23.5%，與前一年一致。

With that context, let me turn to the segments, starting with PET. Net sales for the PET segment came in at $477 million, up 5% year-over-year, primarily driven by the continued strength in our core consumables portfolio. Along with the expected shift of outdoor cushion orders from the first quarter into the second.

在此背景下，讓我轉到各事業部，先從 PET 開始。PET 事業部淨銷售額為 4.77 億美元，年增 5%，主要由我們核心消耗品產品組合的持續強勁表現所帶動。以及如預期，戶外坐墊訂單由第一季移轉至第二季。

On a first half basis, sales for pet were up 1% versus last year. In the quarter, we continued to see healthy demand across our consumables categories, particularly in our higher-margin dog and cat, equine and professional product lines, where innovation and execution are driving top-line growth.

以上半年為基礎，寵物業務銷售額較去年成長 1%。本季，我們在各消耗品品類持續看到健康需求，特別是在毛利較高的犬貓、馬術及專業產品線，創新與執行正推動營收成長。

Across the pet segment, we held share overall. With gains in key categories, including rawhide, dog treats, flea and tick, pet bird, and professional, areas aligned with our growth and margin priorities. We were also encouraged by the distribution gains we achieved during the quarter across a range of categories.

在寵物事業部整體而言，我們維持了整體市占。並在多個關鍵品類取得成長，包括生皮、狗零食、除蚤除蜱、寵物鳥以及專業產品，這些領域與我們的成長與毛利優先事項一致。我們也對本季在多個品類所取得的通路鋪貨成長感到鼓舞。

Operating income for this segment was $78 million in the quarter, compared with $61 million. Operating margin improved to 16.3% from 13.4%, reflecting sales leverage, mix improvement, portfolio optimization and solid execution across the segment.

本事業部本季營業利益為 7,800 萬美元，較 6,100 萬美元增加。營業利益率由 13.4% 提升至 16.3%，反映銷售槓桿、組合改善、產品組合優化以及事業部整體的穩健執行。

Adjusted EBITDA for the segment was $89 million, compared with $75 million, and adjusted EBITDA margin for the segment was 18.6%, compared with 16.6%.

本事業部調整後 EBITDA 為 8,900 萬美元，較 7,500 萬美元增加；調整後 EBITDA 利潤率為 18.6%，高於 16.6%。

Now turning to garden.

接著談 Garden。

Net sales for the garden segment were $425 million, up 13%. As expected, Q2 benefited from the timing of initial retailer shipments for the 2026 season and relatively low retailer on-hand inventories entering the quarter. In addition, the quarter benefited from meaningful distribution gains, particularly in grass seed and fertilizer. That said, for the first half, sales were up 4% over last year.

Garden 事業部淨銷售額為 4.25 億美元，年增 13%。如預期，第二季受惠於 2026 年度季節的零售商首批出貨時點，以及本季初零售商手上庫存相對偏低。此外，本季也受惠於顯著的通路鋪貨成長，特別是在草籽與肥料。儘管如此，上半年銷售額較去年成長 4%。

Overall, we gained market share in garden in the second quarter with strength across several key categories, including grass seed, fertilizer and wild bird.

整體而言，我們在第二季 Garden 取得市占提升，並在多個關鍵品類展現強勁表現，包括草籽、肥料與野鳥產品。

As we enter the garden season, our businesses are well-positioned to deliver a solid year, supported by strong preparation and close alignment with our retail partners. We remain encouraged by the continued support of our customers across our garden categories and brands.

隨著進入園藝季，我們的業務已做好充分準備並與零售夥伴緊密協作，具備交出穩健年度表現的良好條件。我們仍對客戶在各園藝品類與品牌上的持續支持感到鼓舞。

Operating income for the garden segment in the second quarter increased to $66 million, up from $59 million in the prior year. Operating margin was 15.4%, remaining relatively consistent with last year's performance as strong sales volume growth. And productivity improvements helped offset the impact of a lower margin sales mix and higher manufacturing costs.

Garden 事業部第二季營業利益增至 6,600 萬美元，高於前一年的 5,900 萬美元。營業利益率為 15.4%，與去年表現大致一致，因強勁的銷量成長。以及生產力改善有助於抵銷較低毛利的銷售組合與較高的製造成本所帶來的影響。

Adjusted EBITDA totaled $76 million compared with $69 million and adjusted EBITDA margin for this segment was 17.7% compared with 18.2%. Let me close with cash in the balance sheet, which remain a key source of strength and provide flexibility to invest in growth.

調整後 EBITDA 合計 7,600 萬美元，較 6,900 萬美元增加；本事業部調整後 EBITDA 利潤率為 17.7%，低於 18.2%。最後我以資產負債表上的現金作結，這仍是我們的重要優勢來源，並提供投資成長的彈性。

Cash used by operations was $50 million for the quarter, compared with $47 million a year ago.

本季營運活動使用現金為 5,000 萬美元，較一年前的 4,700 萬美元增加。

CapEx for the quarter was $10 million, and depreciation and amortization totaled $21 million, both consistent with the prior year.

本季資本支出（CapEx）為 1,000 萬美元，折舊與攤銷合計 2,100 萬美元，兩者皆與前一年一致。

We continue to expect to invest approximately $50 million to $60 million in CapEx this fiscal year, with a focus on maintenance and targeted productivity and growth initiatives across both segments.

我們仍預期本會計年度將投入約 5,000 萬至 6,000 萬美元的資本支出，重點在維護性投資，以及兩個事業部的特定生產力與成長計畫。

During the quarter, we repurchased approximately 110,000 shares for $3.4 million, with $128 million remaining under our share repurchase authorizations as of quarter end.

本季我們以 340 萬美元回購約 11 萬股；截至季末，在股票回購授權下尚餘 1.28 億美元額度。

At quarter end, cash and cash equivalents and short-term investments totaled $653 million, an increase of $137 million, despite the acquisition of Champion USA in the first quarter.

截至季末，現金及約當現金與短期投資合計 6.53 億美元，增加 1.37 億美元，儘管我們在第一季完成對 Champion USA 的收購。

Reflecting strong liquidity and cash generation. Total debt was $1.2 billion, unchanged from the prior year. Gross leverage ended the quarter at 2.8 times, compared with 2.9 times in the prior year and below our target range of 3 to 3.5 times. Net leverage was approximately 1.3 times, supported by our strong cash position, and we had no borrowings outstanding under our credit facility.

反映強勁的流動性與現金創造能力。總負債為 12 億美元，與前一年持平。本季末總槓桿為 2.8 倍，低於前一年的 2.9 倍，且低於我們 3 至 3.5 倍的目標區間。在強勁現金部位支撐下，淨槓桿約為 1.3 倍，且我們在信用額度下沒有任何未償借款。

Our fortress balance sheet gives us flexibility to continue investing in organic growth, pursuing value-creating M&A and returning capital to shareholders while maintaining a strong financial position.

我們堅實如堡壘的資產負債表，讓我們能在維持強健財務狀況的同時，持續投資內生成長、推動創造價值的併購（M&A），並回饋股東資本。

Before opening for questions, I want to echo Nico and thank our employees. Their work is driving our performance and positioning the business for continued success.

在開放提問之前，我想呼應 Nico 並感謝我們的員工。他們的努力正推動我們的表現，並讓業務具備持續成功的有利位置。

And with that, operator, please open the line for questions.

那麼，接線員，請開放提問線路。

Thank you. We will now be conducting a question-and-answer session.

謝謝。我們現在將進行問答環節。

(Operator Instructions)

（接線員指示）

Brad Thomas, KeyBanc Capital Markets, Inc. Please go ahead.

KeyBanc Capital Markets, Inc. 的 Brad Thomas，請開始。

Good afternoon. Thanks for taking the questions and nice quarter here.

下午好。感謝讓我提問，本季表現很不錯。

I wanted to start off with a question for Niko and JD, I think, to some extent.

我想先從一個問題開始，主要是問 Niko 和 JD，我想在某種程度上是這樣。

And the question is really about in this all-important spring selling season. Clearly, you had a great quarter in terms of sell-in. Just curious if you can give us any thoughts on how sell-through is shaping up and how you're thinking about that for 3Q?

這個問題其實是關於這個至關重要的春季銷售旺季。很明顯，你們在出貨（sell-in）方面交出了一個很強勁的季度。我只是好奇，你們能否分享一下終端銷售（sell-through）的走勢如何，以及你們對第三季（3Q）是怎麼思考的？

Hey, Brad, it's JD. Thanks for the question. I'll start, and then I'll ask Jason to comment on that as well from a consumption standpoint.

嗨，Brad，我是 JD。謝謝你的問題。我先回答，然後也請 Jason 從消費端的角度補充評論。

I'd say, going back to Q2, what we saw in March of Q2, as the weather started to improve, we saw favorable weather, particularly in southern markets, consumption was great. And that pattern has carried into April, and we certainly saw strong consumption throughout the month of April.

我想回到第二季（Q2），我們在第二季的三月看到，隨著天氣開始轉好，特別是在南部市場，天氣條件有利，消費表現非常強。而這個趨勢延續到四月，我們確實看到整個四月的消費都很強勁。

I think from my perspective, when the weather is favorable, the consumers are very engaged in our categories, our retailers are very engaged and excited about the categories. So we have every right to believe that if weather.

以我的觀點來看，當天氣條件有利時，消費者對我們的品類參與度很高，零售商也非常投入並對這些品類感到興奮。所以我們完全有理由相信，只要天氣……

Cooperates and is favorable. We'll continue to see that strength throughout the season. But I'd say we're cautiously optimistic. And Jason, I don't know if you have anything.

配合且維持有利。我們就會在整個季節持續看到這樣的強勁表現。但我會說我們是審慎樂觀。Jason，我不知道你是否還有什麼……

To add to that. I think the only thing that I'd add is that we see strength across the portfolio. So we've got a pretty broad assortment of categories we participate in. And it's not one or two categories that we saw strength in in March. It was basically across the entire portfolio. And that has continued into April when the weather has been there for us. So I agree.

要補充的。我想我唯一要補充的是，我們看到整個產品組合都很強。我們參與的品類相當多元。三月看到的強勁並不是只集中在一兩個品類。基本上是整個產品組合全面走強。而在天氣對我們有利的情況下，這個趨勢也延續到四月。所以我同意。

But also, it's a great work you guys have done. With customers, we have more points of sale, right, compared to the prior year. That's played a role too.

另外，這也反映你們和客戶合作做得很棒。相較去年，我們有更多銷售據點（points of sale），對吧？這也扮演了一定角色。

It has. And Brad referenced the ship-in. Some of that was timing. Some of that was low retailer inventory. Some of that was a lot of new points of distribution year-over-year. So we did a nice job of shipping in. And then the consumption piece of it is still going to be tied to weather to a large degree. But where we see the weather, we've seen robust consumption.

確實如此。而 Brad 提到的出貨（ship-in）。其中一部分是時點因素。一部分是零售商庫存偏低。還有一部分是年對年新增了很多新的鋪貨點（points of distribution）。所以我們在出貨方面做得不錯。至於消費端，仍然在很大程度上取決於天氣。但只要天氣條件到位，我們就看到強勁的消費。

Great. And if I could ask a follow-up just about the guidance at a high level, pretty normal for you all to be reiterating guidance. If we just do some back-of-the-envelope math, you've had a strong first half of the year. If you were just to hit that $2.70 number, that would imply that the second-half could be lower by about $0.25 from what you did in the second-half last year.

很好。如果我可以追問一下，關於你們在高層次上的財測指引（guidance），你們重申指引算是很正常。如果我們做個粗略估算，你們上半年表現很強。如果只是達到 2.70 美元這個數字，意味著下半年可能會比去年下半年低大約 0.25 美元。

I know you tend to give kind of a wide range here, but just wondering if in broad strokes, you could maybe talk about how you're thinking about the ability to drive profit or earnings growth in the second-half?

我知道你們通常會給一個相對寬的區間，但想請你們用比較概括的方式談談，你們如何看待下半年推動獲利或盈餘成長的能力？

Sure. I'll give it a crack, Brad. Yeah, I mean, your point is well taken. We have started pretty strong.

當然。我來試著回答一下，Brad。是的，你的觀點很有道理。我們確實開局很強。

And as JD alluded to, April so far ships look pretty good.

而且如同 JD 提到的，到目前為止，四月的出貨看起來也相當不錯。

In terms of guiding, we still need to see the season play out. As everybody knows, we're very weather dependent. And that really means May. May is that critical month, I would say, April and May. May is very important to the live goods business. So before we can kind of give the all-clear signal and take guide up, we really need to see that play out. And I think if you look at our history.

在提供指引方面，我們仍需要看到整個旺季的實際發展。大家都知道，我們非常依賴天氣。而這主要意味著五月。我會說四月和五月都很關鍵。五月對活體商品（live goods）業務非常重要。所以在我們能夠發出「一切明朗」的訊號並上調指引之前，我們確實需要看到五月的表現。而且我想如果你看我們過去的歷史……

We usually do that in early to mid-June once we're comfortable with May. But what I would say is we feel really good about the business. As everyone knows, it started very slow in Q1, and it sort of played out exactly the way we thought. A lot of these sales slipped into Q2, and then we had some really nice weather, and that momentum has continued into April. So we are very cautiously optimistic.

通常我們會在六月上旬到中旬、在對五月的表現感到放心後才會這麼做。但我想說的是，我們對業務感覺非常好。如大家所知，第一季一開始非常慢，而整體走勢基本上正如我們所預期。很多銷售延後到第二季，接著我們遇到一些非常好的天氣，這股動能也延續到四月。所以我們是非常審慎樂觀。

That the momentum will continue, but we just don't know for sure to the point where we're willing to move on guidance just yet.

我們認為這股動能會持續，但我們還沒有確定到願意立刻調整指引的程度。

And Niko, I think what I would add to those comments is, yes, May is critically important and what I failed to mention in the last question that Brad asked is. We still have a number of markets that haven't come on board yet. So a lot of the northern markets are just now -- I was in Boston last week, and it was still winter.

Niko，我想我對這些評論再補充一下：是的，五月非常關鍵；而且我在 Brad 上一題時漏提的是……我們仍有一些市場尚未真正啟動。所以很多北部市場現在才剛開始——我上週在波士頓，那裡仍然像冬天一樣。

So as those markets come on, we'll feel a lot more confident in making a call going forward. But as Niko said, we really need to see how May plays out.

因此，隨著這些市場逐步啟動，我們在做出後續判斷時會更有信心。但如同 Niko 所說，我們確實需要看看五月會如何發展。

Yes, and as we give ourselves a very wide aperture by saying 270 or better.

是的，而且我們用「2.70 或更高」這樣的說法，等於給自己留了非常大的彈性空間。

And again, we really like the momentum that we're seeing and the teams are executing. So we do feel really good. But again, we need to see it play out for a few more weeks.

再說一次，我們很喜歡目前看到的動能，而且團隊執行得很好。所以我們確實感覺非常好。但同樣地，我們還需要再觀察幾週，看看實際走勢。

That's really helpful.

這非常有幫助。

Brian McNamara, Canaccord Genuity. Please go ahead.

Brian McNamara，Canaccord Genuity。請開始提問。

Hey, good afternoon, everyone. Thanks for taking the questions.

嗨，各位下午好。謝謝讓我提問。

And congrats on the strong results here.

也恭喜你們交出強勁的成果。

So three months ago, I guess from your comment, it sounded like PET was at or near a bottom. And obviously, Q1, I think this is your first quarter of growth in this segment out of the last five and second out of the last seven. So like how should we think about the back half? I know you guys don't guide your revenue, but is growth continuing a reasonable expectation and what kind of what drives that?

所以三個月前，從你們的評論來看，PET 似乎已經在底部或接近底部。而且很明顯地，第一季（Q1）我認為這是你們在過去五季中該部門首次出現成長，也是過去七季中的第二次。那麼我們該如何看待下半年？我知道你們不提供營收指引，但持續成長是否是合理的預期？又是由哪些因素驅動？

Yeah, I can take it. This is John.

好的，我可以回答。我是 John。

We feel really good about where we're at.

我們對目前的狀況感覺非常好。

We showed 5% top-line growth, and I think we said in the last call that from everything we can see from household penetration and buy rate and even our live animal sales, we believe the category stabilized.

我們的營收年增 5%，而且我想我們在上次電話會議中提到，從我們所能看到的家庭滲透率、購買率，甚至我們的活體動物銷售來看，我們相信這個品類已經趨於穩定。

We still feel that way.

我們仍然是這麼覺得。

We did have the help in the 5% this time of some timing on our. Cushions business that slid from Q1 to Q2. But even if you back that out, we feel pretty good about the organic piece of the growth in the business.

這次在5%裡面，我們確實受惠於一些時點因素，來自我們墊子（Cushions）業務從第一季滑到第二季。但即使把這部分扣除，我們對於業務成長中有機成長的那一塊仍然相當有信心。

It's a little difficult to have a crystal ball and say what the balance of the year is going to look like, but I would say we're cautiously optimistic.

要有水晶球去說今年剩餘時間會長什麼樣子有點困難，但我會說我們是審慎樂觀。

And we're talking excluding distribution.

而且我們談的是排除經銷（distribution）。

Excluding distribution, just to be super clear on that.

排除經銷，為了非常清楚地說明這點。

Yeah, I think the same can be said for the pet side of the business, which we're seeing some really nice execution there and some market share gains in some key categories. And so we expect that to continue. And then the other part, too, will be.

是的，我認為同樣也適用於寵物端的業務；我們看到那邊執行得非常好，並且在一些關鍵品類取得市占率提升。因此我們預期這會持續。另外一部分也會是。

Pet is a little bit weather dependent going into the summer with flea and tick, and so we still want to see that play out.

寵物業務在進入夏季時，跳蚤與壁蝨（flea and tick）會有點受天氣影響，所以我們仍想看看後續發展。

And apologies if I missed this, but what was the durables consumables mix for the quarter and how did durables do? Cushions probably helped there, obviously.

不好意思如果我漏聽了，本季耐用品（durables）與消耗品（consumables）的組合比重是多少？耐用品表現如何？墊子（Cushions）顯然可能在那裡有所幫助。

Yeah, I would look at it, given the timing noise, I would look at it on a first half basis, and I would say durables was 18% of sales for the first half in pet.

是的，考量到時點雜訊，我會建議用上半年來看；我會說在寵物業務中，耐用品占上半年銷售的18%。

I know John and I continue to believe that that is going to go down in time given the rate of performance on our consumables business, but it did it was relatively resilient.

我知道John和我仍然相信，隨著我們消耗品業務的表現速度，這個比重會隨時間下降，但它確實相對有韌性。

We felt good about our consumable performance in Q2. It was up mid-single-digits.

我們對第二季消耗品的表現感到滿意。成長為中個位數百分比。

Certainly, that was a higher margin piece of our business and a good mix play in our focus area.

當然，那是我們業務中毛利較高的一塊，也是我們聚焦領域中一個不錯的組合（mix）帶動。

But durables were.

但耐用品則是。

Up quite a bit in Q2, largely because of the cushion shift. That's why Q2 suggested.

第二季成長相當多，主要是因為墊子移轉的影響。這就是為什麼第二季看起來。

Yeah, that's right. It takes the noise up. Yeah.

對，沒錯。它把雜訊放大了。是的。

Understood. And then just a last one on the distribution and the JV there.

了解。最後再問一個關於經銷以及那個合資（JV）的問題。

One, what kind of drove the decision?

第一，是什麼驅動了這個決策？

And two, like, clearly you've had that business for, other things other than.

第二，顯然你們擁有那個業務已經有一段時間了，還有其他因素不只是。

It's a lower marketing business and all that, like, where you get insight into consumer trends. It strengthens your customer relationships and category management. You get access to emerging brands for M&A, among other things.

它是較低行銷投入的業務等等；例如你們能洞察消費者趨勢，強化客戶關係與品類管理，也能接觸到新興品牌以利併購（M&A）等。

Do you kind of -- do you still get two bites of the apple there with this setup? And secondly, on the same point, why wouldn't earnings benefit from it rather than just kind of being a net neutral for the back half?

在這種架構下，你們是否仍然能「一魚兩吃」？另外同一點，為什麼獲利不會因此受益，而只是讓下半年大致呈現淨中性？

Well, I mean, what I would say is we still own 20%, and the way we viewed it was access versus ownership. We still have access to the channel. We just don't own the whole business.

嗯，我的意思是，我會說我們仍然持有20%，而我們的看法是「取得通路的接觸權」相對於「擁有權」。我們仍然能接觸這個通路。只是我們不再擁有整個業務。

There were a lot of factors that drove this. It was everything from listening to investors and analysts question our margins, and we always had this overhang of the distribution business. That everyone knew was lower margin, but we would have to explain it over and over.

促成這件事的因素很多。從聽到投資人與分析師質疑我們的毛利開始，而且我們一直背負著經銷業務的包袱。大家都知道那是低毛利，但我們得一再解釋。

I would say also that it really is in line with our cost and simplicity program. So that business had 26,000 SKUs, and it had a lot of ship points and trucks and employees. And so we're looking to really streamline the business so we can focus our energy around.

我也會說，這其實非常符合我們的成本與簡化計畫。那個業務有26,000個SKU，還有很多出貨點、卡車與員工。因此我們希望真正精簡業務，讓我們能把精力聚焦在。

Products and businesses that are higher margin that really move the needle rather than managing this crazy level of complexity. And so that really drove it.

毛利更高、真正能帶動成長的產品與業務上，而不是去管理這種瘋狂程度的複雜性。所以這點確實是主要驅動因素。

And then you look at the independent channel, which is really what the distribution business serves, and that's been a challenge. And we knew that in order to give us the best chance of success, that it made sense to do a JV with another player. And that player is actually very strong in food, whereas we were more on the supply side. So we think the combination really made a lot of sense.

再來看獨立通路（independent channel），也就是經銷業務主要服務的通路，那一直是個挑戰。我們知道為了讓我們有最佳成功機會，與另一個業者成立合資是合理的。而那個業者在食品（food）方面其實非常強，而我們則更偏用品（supply）端。因此我們認為這樣的組合非常合理。

And then from a financial perspective, to answer your other question, I mean, it was making money when we sold it, not a lot, but a little bit, so we lose that in the back half.

從財務角度來回答你另一個問題：我們出售時它是有賺錢的，不多，但有一點，所以我們在下半年會失去那部分。

When you look at the equity that we score. For our 20% of the joint venture in the back half. We're currently projecting that there will be some initial losses. They will not yet be in a position to start to unlock the synergies. And then there's going to be a fair amount of purchase accounting attached to it, which will have a non-cash impact as well that will flow through earnings. So our estimate on the back half in terms of the financial impact to Central is. Conservatively $0.03 to $0.05 the share dilutive. And then as we get into next year and the following year, as we start to unlock synergies, we should start to see some positive results at some point.

當你看我們認列的權益法損益。針對下半年我們持有合資公司20%的部分。我們目前預估初期會有一些虧損。他們尚未處於能開始釋放協同效益的階段。此外還會有相當程度的購買會計（purchase accounting）調整，這也會對損益產生非現金影響並反映在盈餘中。因此我們對下半年就對Central的財務影響估計是。保守來看，每股稀釋0.03到0.05美元。而當我們進入明年及後年，隨著開始釋放協同效益，我們應該會在某個時間點開始看到一些正面成果。

Very helpful.

非常有幫助。

Thank you, guys.

謝謝各位。

Bob Labick, CJS Securities. Please go ahead.

Bob Labick，CJS Securities。請繼續。

Hi, this is William for Bob. Congrats on the strong quarter.

嗨，我是William，代替Bob發問。恭喜本季表現強勁。

Thank you.

謝謝。

So from raw materials and plastic sourcing just with the war, have raw material prices impacted the garden segment at all so far?

就原物料與塑膠採購而言，隨著戰爭影響，到目前為止原物料價格是否對園藝（garden）部門造成任何影響？

We've seen some inflation, particularly as it relates to urea now.

我們確實看到一些通膨，特別是與尿素（urea）相關的部分。

One of the benefits we have is we do a we pre-build a lot of our materials for the year. So we're going to see some impact late in this year, but it will be a manageable number, a smaller number.

我們的一個優勢是，我們會為全年預先備料（pre-build）很多原料。所以我們會在今年稍晚看到一些影響，但會是可控的數字、較小的數字。

Certainly for next year, as we start our pre-build for 2027, it will have an impact on our fertilizer costs.

當然，對明年而言，當我們開始為2027做預先備料時，這將會影響我們的肥料成本。

But that is something that is widely known and it's already been discussed with our customers. It's fluid right now, and we'll have to see where this goes. So we haven't taken pricing, but most likely next year, we will be forced to take pricing as a result of it. For this year, 2026, no pricing plan and a manageable or smaller number.

但這是眾所周知的事情，而且我們已經和客戶討論過。目前變動很大，我們得看看後續發展。所以我們今年尚未調價，但很可能明年我們會被迫因為這個因素而調價。就今年2026而言，沒有調價計畫，影響是可控或較小的數字。

Due to the impact, due to the inflation.

因為影響，因為通膨。

And I think I would just add on your Rhea that it is a very small piece of the garden business. I mean, from a COGS perspective, it's 1%. So it's not like some of our other competition and yet they're exposed to.

我想我只想補充你提到的尿素：它在園藝業務中占比非常小。以銷貨成本（COGS）角度來看，它是1%。所以不像我們其他一些競爭對手那樣暴露在。

I think that's fair. And then from a fuel standpoint, we're seeing it's similar. We're managing through that as we speak. A lot of our customers pick up their product at our facilities right now, so that, too, is fluid. We'll have to see what the duration of this looks like, how long it goes, and how deep it is, and if there's pricing needed to cover costs in that area. But to date, we've been able to manage through it. Our cost and simplicity initiatives help us offset some of these impacts that we're seeing.

我認為這很公平。接著從燃料的角度來看，我們看到情況也類似。我們正在即時因應並管理。目前我們有很多客戶會到我們的設施自取產品，所以這部分也仍在變動中。我們必須看看這件事會持續多久、會延續多長時間、影響有多深，以及是否需要透過調價來涵蓋該領域的成本。但截至目前，我們都能夠妥善應對。我們的成本與簡化計畫有助於抵銷我們所看到的部分影響。

That is super helpful.

這非常有幫助。

Thank you. And how is pricing in the garden industry in general? Are retailers raising prices?

謝謝。那整體園藝產業的定價情況如何？零售商有在調漲價格嗎？

Retailers coming into this year, there haven't been wholesale price increases.

零售商在今年一開始，批發價格並沒有上調。

I think for next year, depending on input costs, if the manufacturers have to take pricing, then the retailer will have to take pricing. But for this year, no, I think it's been fairly stable. We're seeing it fairly promotional in the marketplace right now, but that was something that we anticipated and planned for.

我認為明年要看投入成本而定；如果製造商必須調價，那零售商也必須調價。但就今年而言，沒有，我認為相當穩定。我們看到目前市場促銷力度相當大，但這也是我們事先預期並規劃過的。

Thank you.

謝謝。

Thank you.

謝謝。

Andrea Taxiria, JPMorgan. Please go ahead.

JPMorgan 的 Andrea Taxiria。請開始提問。

Hi, this is Shavana Chaudhary on for Andrea. Thanks for taking our question.

嗨，我是代替 Andrea 的 Shavana Chaudhary。謝謝讓我們提問。

You commented that consumption stays robust throughout April. And we were just wondering, can you add more color on the health of the consumer? Like, are they more value-seeking? And if you're seeing more -- any trade down to private label, also, what is the level of promotions that you were seeing?

你提到 4 月的消費仍然強勁。我們想請你再多談一些消費者的健康狀況。例如，他們是否更追求性價比？另外，如果你們看到更多——是否有任何轉向自有品牌的情況？以及你們看到的促銷力度大概到什麼程度？

I mean, I can kick it off and then I'll have JD and John give a little more color.

我的意思是，我可以先開個頭，然後請 JD 和 John 再補充一些細節。

Yes, we're seeing, on the garden side, really nice consumption when the weather is good.

是的，在園藝這一端，只要天氣好，我們就看到非常不錯的消費表現。

We absolutely, across the board, are seeing consumers that are value-seeking.

我們確實看到，全面而言，消費者都在追求性價比。

They want performance. They want it at a reasonable price. Our grass seed brand, the Rebels, has done really well because it strikes that balance of. Of being affordable and a great product. So we're seeing those areas really take off. But I'll defer to John and JD to give a little more color on what they're seeing.

他們要的是效能。也希望以合理的價格取得。我們的草籽品牌 Rebels 表現非常好，因為它在兩者之間取得了平衡。也就是價格親民且產品很棒。因此我們看到這些領域確實快速成長。不過我先把話題交給 John 和 JD，請他們補充他們所看到的情況。

Yeah, I think just to add to it on the Pet side, I think we're seeing a bit of a channel shift.

是的，我想在寵物這一端補充一下，我認為我們看到一些通路轉移。

I think the consumer is going into mass and club and e-comm to some degree even more so to get the value pricing, but the value seeking is there.

我認為消費者為了取得更有價值的定價，更多地轉向大眾量販、倉儲會員店，以及某種程度上更偏向電商，但追求性價比的趨勢確實存在。

But I think we're seeing branded do pretty well yet, pretty solid, but it is much more of a channel shift.

不過我認為品牌商品目前仍表現不錯、相當穩健，但更明顯的是通路的轉移。

On the garden side, I'd say it's very similar.

在園藝這一端，我會說非常類似。

First of all, the retailers count on lawn and garden to drive footsteps into the store at this time of the year.

首先，零售商在一年中的這個時期仰賴草坪與園藝品類來帶動進店人流。

So they've been very promotional and very engaged in the category. From a consumer standpoint.

因此他們在這個品類上促銷力度很大，也非常積極投入。從消費者的角度來看。

We're certainly seeing, as I mentioned earlier, when the weather is good, we're seeing robust consumption, and they are seeking value. And this was a good year for us to pick up some meaningful private label business, which we did this year, fortunately, across many retailers, and that business is performing extremely well.

我們確實看到，如我先前提到的，只要天氣好，消費就很強勁，而且他們在追求性價比。而今年對我們來說也是承接一些具規模的自有品牌業務的好時機；我們今年確實在許多零售商那裡拿到這些業務，所幸這些業務表現非常好。

As John mentioned, it's not just the private label, it's our branded products as well. We're seeing consumption across all categories, which is encouraging.

如 John 所提到的，不只是自有品牌，我們的品牌產品也是如此。我們看到各品類的消費都在成長，這令人鼓舞。

Yes, I'd say the health of the I'm not so concerned about the health of the consumer right now. I think it's there when the weather is favorable, and I think the retailers are ready. And Chase Allen, if you'd add anything to that.

是的，我會說我目前並不太擔心消費者的健康狀況。只要天氣有利，需求就會在，而且我認為零售商也已經準備好了。Chase Allen，如果你要補充的話。

The only thing I might add is to John's point about channel shifts, I mean, we continue to see e-commerce grow as a percentage of our business. And I'd say that we're well-positioned there and believe we're stealing share online as well.

我唯一想補充的是呼應 John 關於通路轉移的觀點：我們持續看到電商占我們業務的比重在提升。我會說我們在那裡的布局很到位，也相信我們在線上同樣正在搶占市占。

So I think that's the only thing to add to where we're seeing value.

所以我想這是唯一要補充的、我們看到價值所在的地方。

Maybe one last comment, and that is, we've commented in previous calls about footsteps at retail, particularly in home centers and things like that, tailing off over the last few years. We've seen that stabilize and start to increase again, which is encouraging for us.

也許最後再補充一點：我們在先前的電話會議中談到，零售端的進店人流，特別是家居賣場等，過去幾年一直在下滑。我們看到這已經趨於穩定並開始再次增加，這對我們而言是令人鼓舞的。

Thank you for all the color. I'll pass it on.

謝謝你們提供這麼多細節。我把時間交回去。

Brian McNamara, Canaccord Genuity. Please go ahead.

Canaccord Genuity 的 Brian McNamara。請開始提問。

Environment.

環境。

At Global Pet, it sounded like everybody was going after CAT. That's a hole in your portfolio, for lack of a better term. Like how would you characterize the current M&A environment relative to three months ago and maybe a year ago? It sounds like things have been heating up a little bit in terms of activity.

在 Global Pet，聽起來大家都在追逐 CAT。坦白說，這是你們產品組合中的一個缺口。你會如何描述目前的併購環境，相較於三個月前、以及可能一年前的狀況？聽起來在活動度方面似乎有點升溫。

Very much, yeah. We're seeing things really pick up.

非常明顯，是的。我們看到事情確實在加速。

Just in terms of conversations and deal flow. And a lot of the bankers were telling us a year ago that '25 was going to be a year, and that ended up being a lot more talk. I think this year, you really feel that the conversations are a lot more sincere.

就對話與案源（deal flow）而言。而且很多投行一年前就跟我們說 2025 年會是個大年，但最後更多只是說說而已。我認為今年你真的能感受到這些對話更有誠意得多。

We're seeing processes kick off with some really nice assets. And we ourselves have several conversations going on right now, so we're very encouraged by the environment, the M&A environment that's really picking up right now.

我們看到一些很不錯的資產開始啟動流程。而我們自己目前也同時在進行幾個對話，所以我們對目前正在回溫的併購環境感到非常鼓舞。

Great. That's all I got. Thanks, guys.

很好。我就這些。謝謝各位。

Thank you.

謝謝。

Well, this was our last question. Thanks, everyone, for joining us today. Please reach out to us with any additional questions you may have. Thanks.

好的，這是我們最後一個問題。謝謝大家今天加入我們。若你們還有任何其他問題，請隨時與我們聯繫。謝謝。

Thank you.

謝謝。

Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines and have a wonderful day.

各位女士、先生，感謝各位的參與。今天的電話會議到此結束。您可以掛斷電話線，祝您有美好的一天。