Scotts losses widen in Q4
Scotts Miracle-Gro reported fourth quarter 2018 net sales increased 15% to $433.9 million compared to fourth quarter 2017 net sales of $376.7 million.
For the full year, sales rose just 1% to $2.66 billion from full-year 2017 sales of $2.64 billion.
But the Marysville, Ohio-based lawn and garden products manufacturer, reported a net loss of $146.9 million for the fourth quarter in comparison to a net loss of $33.4 million for the same period in 2017.
Scotts posted a net income of $63.7 million for the full year, down from a net income of $218.8 million in the prior fiscal year.
“There is little doubt that fiscal 2018 was one of our most challenging years in recent memory,” said Jim Hagedorn, chairman and CEO of Scotts Miracle-Gro. “Our U.S. Consumer business, however, had a strong second half following unfavorable early season weather. The Hawthorne team also made substantial progress in recent months, integrating the Sunlight acquisition to enable strong benefits for 2019.”
For the fourth quarter, Scotts’ subsidiary Hawthorne reported sales of $152.2 million, a 65% increase from the same period a year ago, driven by acquisitions. Excluding acquisitions, sales decreased 15% due to declines in the North American hydroponic business partially offset by growth in the European professional greenhouse market and AeroGrow. Hawthorne also reported a segment profit of just $0.5 million in the quarter compared with $9 million a year earlier.
For the full year, sales rose just 1% to $2.66 billion from full-year 2017 sales of $2.64 billion.
But the Marysville, Ohio-based lawn and garden products manufacturer, reported a net loss of $146.9 million for the fourth quarter in comparison to a net loss of $33.4 million for the same period in 2017.
Scotts posted a net income of $63.7 million for the full year, down from a net income of $218.8 million in the prior fiscal year.
“There is little doubt that fiscal 2018 was one of our most challenging years in recent memory,” said Jim Hagedorn, chairman and CEO of Scotts Miracle-Gro. “Our U.S. Consumer business, however, had a strong second half following unfavorable early season weather. The Hawthorne team also made substantial progress in recent months, integrating the Sunlight acquisition to enable strong benefits for 2019.”
For the fourth quarter, Scotts’ subsidiary Hawthorne reported sales of $152.2 million, a 65% increase from the same period a year ago, driven by acquisitions. Excluding acquisitions, sales decreased 15% due to declines in the North American hydroponic business partially offset by growth in the European professional greenhouse market and AeroGrow. Hawthorne also reported a segment profit of just $0.5 million in the quarter compared with $9 million a year earlier.