For Scotts, Q1 loss widens
Marysville, Ohio-based Scotts Miracle-Gro Company reported a net loss of $79.7 million, compared to a net loss of $21.2 million in the same quarter last year.
CEO Jim Hagedorn said the loss comes as no surprise. “Our operating results are in line with what we expected and, more importantly, we are extremely encouraged with the level of engagement we are seeing from our largest retail partners as we prepare for the 2019 lawn and garden season,” he said.
The company said the seasonal nature of the lawn and garden category, it usually reports a loss each year during its first quarter.
Sales increased 35 percent company-wide in its fiscal first quarter, thanks to acquisitions in the Hawthorne segment as well as strong performance in the U.S. consumer business.
“The combination of strong retailer support, game-changing innovation with products like Miracle-Gro Performance Organics and Ortho GroundClear, and increased investment behind our brands, give us a high level of confidence in our outlook for the season,” Hagedorn said in a prepared statement.
“The recent performance at [Hawthorne Gardening Co.] is also encouraging as we began to see a return to growth in the U.S. hydroponics business in the second half of the first quarter, a trend that has continued in January. The integration of the Sunlight acquisition also remains on track, including the expected cost savings,” he continued. “These facts renew our confidence in our full-year outlook for Hawthorne and our bullish long-term outlook for our role as the leader in this evolving industry.”
Hawthorne is a family of brands revolving around sustainable gardening, organic gardening, and hydroponics – the latter often associated with what is expected to be a growing business in legal marijuana.
U.S. Consumer segment sales increased 9% to $136.9 million as some retail partners began taking shipments earlier than a year ago in anticipation of the upcoming lawn and garden season.
CEO Jim Hagedorn said the loss comes as no surprise. “Our operating results are in line with what we expected and, more importantly, we are extremely encouraged with the level of engagement we are seeing from our largest retail partners as we prepare for the 2019 lawn and garden season,” he said.
The company said the seasonal nature of the lawn and garden category, it usually reports a loss each year during its first quarter.
Sales increased 35 percent company-wide in its fiscal first quarter, thanks to acquisitions in the Hawthorne segment as well as strong performance in the U.S. consumer business.
“The combination of strong retailer support, game-changing innovation with products like Miracle-Gro Performance Organics and Ortho GroundClear, and increased investment behind our brands, give us a high level of confidence in our outlook for the season,” Hagedorn said in a prepared statement.
“The recent performance at [Hawthorne Gardening Co.] is also encouraging as we began to see a return to growth in the U.S. hydroponics business in the second half of the first quarter, a trend that has continued in January. The integration of the Sunlight acquisition also remains on track, including the expected cost savings,” he continued. “These facts renew our confidence in our full-year outlook for Hawthorne and our bullish long-term outlook for our role as the leader in this evolving industry.”
Hawthorne is a family of brands revolving around sustainable gardening, organic gardening, and hydroponics – the latter often associated with what is expected to be a growing business in legal marijuana.
U.S. Consumer segment sales increased 9% to $136.9 million as some retail partners began taking shipments earlier than a year ago in anticipation of the upcoming lawn and garden season.