CENTA

• Nicholas mentioned the company ended the quarter with improved gross margins and solid earnings per share, with a focus on simplifying the business, improving efficiency, and maintaining profitability. The multiyear supply chain network design program improved customer alignment, service levels, and cost efficiency, with actions like integrating distribution facilities and consolidating manufacturing. • Bradley discussed first quarter performance: net sales $617 million, a 6% year-over-year decline due to shipment timing and portfolio optimization. Non-GAAP gross margin expanded 100 basis points to 30.8%. Also highlighted segment performances, balance sheet and cash flows, including share repurchases, cash position, and debt levels.

• Reaffirming expectation for fiscal 2026 non-GAAP diluted EPS of $2.70 or better. • Expecting CapEx of approximately $50 million to $60 million. • Estimating incremental year-over-year gross tariff exposure of roughly $20 million for the fiscal year, concentrated in the Pet segment.

Pet segment: Net sales were $416 million, a 3% year-over-year decline. Non-GAAP operating income was $50 million, with a non-GAAP operating margin of 12.1%. Garden segment: Net sales were $202 million, a 12% decline. Non-GAAP operating loss was $2 million, with a non-GAAP operating margin of negative 1.2%.

• Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. • Detailed risk factors can be found in the annual report filed with the SEC.

Q: With freezing temperatures across the country, speak about placements in the garden season and share gain prospects.

A: John D. Walker said Q1 results don't dictate the garden season, distribution points of products manufactured are up 14% year over year, expect to gain share in fertilizers, packet seeds, wild bird feed, and grass seed.

Q: Balancing act of improving profitability vs investing in business to grow.

A: Nicholas Lahanas said cost and simplicity efforts are embedded in culture, now pivoting to growth mindset with M&A, innovation, private label, and digital investment.

Q: Quantify impact of headwinds to sales, timing of garden shipments, etc.

A: Bradley G. Smith said timing impact was more than half of net sales decline, portfolio optimization efforts were another significant factor, gains in rawhide, animal health, and wild bird offset some impacts.

Q: Update on pet adoption trends.

A: John Edward Hanson said pet category is stabilizing, live animal business posted positive growth in Q4 and Q1, tilted towards coming back up.

Q: What drove EPS upside relative to expectation.

A: Bradley G. Smith said higher margin businesses provided offsets, with orders in higher profit business contributing.

Q: Thoughts on retailers' commitments to Garden category.

A: John D. Walker said positioned well, secured retailer support, retailers are optimistic about upcoming season.

Q: Thoughts on M&A environment.

A: Nicholas Lahanas said encouraged, seeing more activity, especially in pet, and involved in several discussions.

Q: Read on consumer on pet and Garden.

A: John Edward Hanson said pet side saw bottom, Garden side optimistic with shift to do it yourself and categories doing well in difficult environment.

Q: Return of top-line growth and M&A vs share repurchases.

A: Nicholas Lahanas said optimistic towards end of second half, can do both M&A and share repurchases, carrying cash for M&A and being opportunistic with share repurchases.