Scotts is high on Hawthorne
Scotts Miracle-Gro Company, the self-described “world’s leading marketer of branded consumer lawn and garden” products, reported strength in its U.S. consumer business, as well as its Hawthorne division, which is spreading its roots in the cannabis industry.
For the Marysville, Ohio-based company’s third quarter ended June 29, sales increased 18% to $1.17 billion, up from $994.6 million a year earlier, as CEO Jim Hagedorn reported “outstanding results as nearly every aspect of our business is exceeding our expectations.”
The company raised its sales guidance to growth of 16% to 17%. Wall street responded positively: shares of SMG finished the day up 8.6% on Wednesday.
The company’s Hawthorne business saw sales increase 138% to $176.3 million. This gain was largely the result of the June 2018 acquisition of Sunlight Supply. Not counting Sunlight, Hawthorne saw sales gains of 49% in the third quarter. The company is bullish on the business, especially in emerging markets where changes to state laws regarding cannabis cultivation are beginning to drive higher sales – Florida, Ohio, Michigan and Massachusetts.
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The bottom line: Net income increased to $201.6 million, up from $82.8 million in the same quarter last year.
Here’s what the CEO said: “In the U.S. Consumer segment, retailer and consumer engagement remains extremely positive, leading to sales growth of 10 percent in the quarter and 9 percent on a year-to-date basis,” said Jim Hagedorn, chairman and CEO. “The recovery at Hawthorne has been even more impressive, with sales up 49 percent on an apples-to-apples basis in the quarter and 19 percent year-to-date through June.”
More company information: Read the full earnings release here.
For the Marysville, Ohio-based company’s third quarter ended June 29, sales increased 18% to $1.17 billion, up from $994.6 million a year earlier, as CEO Jim Hagedorn reported “outstanding results as nearly every aspect of our business is exceeding our expectations.”
The company raised its sales guidance to growth of 16% to 17%. Wall street responded positively: shares of SMG finished the day up 8.6% on Wednesday.
The company’s Hawthorne business saw sales increase 138% to $176.3 million. This gain was largely the result of the June 2018 acquisition of Sunlight Supply. Not counting Sunlight, Hawthorne saw sales gains of 49% in the third quarter. The company is bullish on the business, especially in emerging markets where changes to state laws regarding cannabis cultivation are beginning to drive higher sales – Florida, Ohio, Michigan and Massachusetts.
# # #
The bottom line: Net income increased to $201.6 million, up from $82.8 million in the same quarter last year.
Here’s what the CEO said: “In the U.S. Consumer segment, retailer and consumer engagement remains extremely positive, leading to sales growth of 10 percent in the quarter and 9 percent on a year-to-date basis,” said Jim Hagedorn, chairman and CEO. “The recovery at Hawthorne has been even more impressive, with sales up 49 percent on an apples-to-apples basis in the quarter and 19 percent year-to-date through June.”
More company information: Read the full earnings release here.