Scotts Miracle-Gro Company · Q3 2024 earnings

Briefing

Scotts Miracle-Gro successfully delivered POS growth and profitability, driven by strength in the U.S. consumer business and effective adaptation to external factors.

Scotts Miracle-Gro reported a 7% increase in total company sales to $1.2 billion for the third quarter ended June 29, 2024. The U.S. Consumer segment saw an 11% increase in net sales, while the Hawthorne segment experienced a 28% decrease. GAAP EPS was $2.28, and non-GAAP adjusted EPS nearly doubled to $2.31.

• U.S. Consumer third quarter net sales increased by 11 percent year-over-year.
• Consumer engagement showed strength with unit POS up 10 percent year-to-date.
• Third quarter GAAP gross margin rate improved by 1,110 bps over the prior year.
• Hawthorne proprietary Signature sales increased 6 percent in Q3, achieving its first profitable quarter since fiscal 2022.

Headline financials

Revenue & EPS history

The Company reaffirms the non-GAAP fiscal 2024 guidance issued in June with the exception of Hawthorne net sales, which are now expected to end the fiscal year 35 to 40 percent lower than prior year with progress exiting lower margin distributed brands and projected decline in its professional horticulture lighting business. The segment still expects break even or better non-GAAP adjusted EBITDA for the full year in line with previous guidance.