The Scotts Miracle-Gro Company reports developments in branded consumer lawn and garden products in North America, including the Scotts®, Miracle-Gro®, Ortho® and Tomcat® brands. Company news centers on sales trends, gross margin recovery, leverage, cash generation, dividends and capital allocation, along with guidance for its core U.S. Consumer lawn and garden business.
Updates also cover product and channel initiatives, such as patio and container gardening collaborations, community gardening grants through The Scotts Miracle-Gro Foundation, and completed portfolio actions. The completed sale of The Hawthorne Gardening Company shifted the company's public updates toward its North American consumer lawn and garden franchise after Hawthorne's indoor and hydroponic gardening supplies were treated as discontinued operations.
ScottsMiracle-Gro (NYSE: SMG) is hosting a 'Meet the Management' Investor Day, outlining its three-year plan to achieve 3% average annual growth and return to adjusted gross margin rates above 30%. The company reaffirms its fiscal year 2024 guidance, citing a 10% year-over-year POS unit growth through June.
Key strategic objectives include:
- U.S. Consumer business targeting $150 million in supply chain cost savings over three years
- Hawthorne subsidiary focusing on proprietary 'Signature' brands
- Expecting to average 3% net sales growth through innovation, pricing, and acquisitions
- Aiming for non-GAAP adjusted operating margin over 15% and adjusted EBITDA exceeding $600 million
- Projecting over $300 million annualized free cash flow after capital expenditures
ScottsMiracle-Gro (NYSE: SMG) has updated its fiscal 2024 guidance amid its peak lawn and garden season. The company now projects non-GAAP adjusted EBITDA between $530 and $540 million, reflecting a 20% year-over-year improvement, though this is a downgrade from previous guidance of $575 million. Sales in the U.S. Consumer segment are expected to grow by 5-7%, down from the previous high single-digit forecast. The company maintains its target of $1 billion in two-year free cash flow, with $560 million expected in fiscal 2024, and aims to reduce debt by $350 million. The Hawthorne segment is projected to break even or better by year-end. ScottsMiracle-Gro also anticipates a 250 basis points improvement in non-GAAP gross margin and $300 million in cost savings through the Project Springboard initiative.
ScottsMiracle-Gro (NYSE: SMG) has announced its support for the merger between RIV Capital and Cansortium, aiming to enhance its stake in the cannabis market in high-growth states like New York and Florida. This move aligns with ScottsMiracle-Gro's 2021 strategy, having invested $175 million in RIV Capital. The merger will see The Hawthorne Collective, a subsidiary of ScottsMiracle-Gro, exchange its RIV notes for non-voting exchangeable shares in Cansortium. This strategic combination is expected to bolster cannabis cultivation and retail operations, providing significant value-creation opportunities. RIV Capital has already made strides in New York's cannabis market, while Cansortium has established a strong presence in Florida, Texas, Pennsylvania, and Alabama.
The Scotts Miracle-Gro Company (NYSE: SMG) invites institutional investors, equity analysts, and financial media to its headquarters in Marysville, Ohio, for an in-person 'Meet the Management' Investor Day on July 16, 2024, from 8 a.m. to 1 p.m. ET. The event includes presentations by executive and senior leadership, showcasing near- and long-term strategic focuses and recent innovations. Attendees will participate in a Q&A session over lunch and have time for informal networking. Video recordings will be available online within the following week, archived for at least 90 days. Registration is required by June 14, 2024, via email to investor@scotts.com.
The Scotts Miracle-Gro Company (NYSE: SMG) will participate in the William Blair 44th Annual Growth Conference in Chicago on June 6, 2024.
Matt Garth, Chief Financial and Administrative Officer, will provide a business update at approximately 8:00 CT. A live webcast of the presentation will be available on the Company’s investor relations website, and an archive will be accessible for at least 90 days.
ScottsMiracle-Gro, with approximately $3.6 billion in sales, leads the market in consumer lawn and garden care products. Its notable brands include Scotts®, Miracle-Gro®, and Ortho®. The Company’s subsidiary, The Hawthorne Gardening Company, specializes in indoor and hydroponic growing products.
The Scotts Miracle-Gro Company (NYSE: SMG) reported strong second-quarter results with U.S. Consumer net sales hitting a record high of $1.38B, GAAP EPS of $2.74, and non-GAAP Adjusted EPS of $3.69. The company exceeded operating plan targets, improved gross margin, and generated strong free cash flow. Despite total sales being flat at $1.53B, the U.S. Consumer segment increased by 2%. Hawthorne segment sales declined by 28% due to strategic changes. The Company's financial position remains strong with net leverage of 6.95x, well below covenant maximum, and aims to achieve fiscal 2024 guidance.
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