Scotts Miracle-Gro Q1 Sales Reach $416.8M

By Bobby Samwell • Wednesday, January 29 15:32 • Permanent Link

The Scotts Miracle-Gro Company reported its first-quarter results for the period ended December 28, 2024. The company's total sales for the quarter were $416.8 million, a slight increase from the prior year's sales of $410.4 million. U.S. consumer net sales saw a significant 11% increase, reaching $340.9 million from $306.7 million in the same period last year.

The company's GAAP gross margin rate improved by 750 basis points to 22.7%, while the non-GAAP adjusted gross margin rate improved by 1,030 basis points to 24.0%. This significant improvement was primarily attributed to lower material costs, favorable fixed-cost leverage, lower distribution costs, and an improved product mix related to Hawthorne's transition from selling third-party products.

Non-GAAP adjusted EBITDA for the quarter reflected a $30 million improvement, amounting to $4 million. The company's GAAP loss per share was reported at $1.21, while the non-GAAP adjusted loss per share improved by $0.56 to reach $0.89 per share.

The U.S. consumer segment's performance was driven by a strong fall season across all categories and early retailer load-in for the spring season, resulting in a 12% increase in dollars and a 13% increase in units for consumer POS (point of sale).

However, the Hawthorne segment experienced a 35% decrease in sales, amounting to $52.1 million compared to $80.1 million in the prior year, as a result of the strategic exit from third-party distribution.

The company's SG&A increased by 9% to $124.8 million, primarily driven by increased investments in people, marketing, and innovation. Interest expense declined by 21% to $33.7 million, mainly due to a lower debt balance compared to the prior year.

The company reaffirmed its full-year sales, adjusted gross margin, and adjusted EBITDA guidance, while also lowering its interest expense guidance for the year. The non-GAAP fiscal 2025 guidance includes a low single-digit growth in U.S. consumer net sales, a mid-single-digit decrease in Hawthorne net sales, a non-GAAP adjusted gross margin of approximately 30%, and a non-GAAP adjusted EBITDA of $570 million to $590 million.

Today the company's shares have moved -4.3% to a price of $72.44. If you want to know more, read the company's complete 8-K report here.

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