ScottsMiracle-Gro sees numbers jump by 27% in Q1

The Scotts Miracle-Gro Company reported a 27% sales increase in the first quarter, largely driven by recent acquisitions and strong consumer demand in the U.S.

“The strong consumer demand that we saw last summer continued into the fall and gave us an outstanding start to our new fiscal year,” said Jim Hagedorn, chairman and CEO. “As we prepare for the start of another lawn and garden season, we continue to see strong retailer support for our category and for our brands. The strength of the core U.S. business, combined with the continued momentum from the hydroponic businesses in the Hawthorne Gardening Company portfolio, give us great confidence as we enter the season and in the financial guidance that we have provided.”

Net sales of $246.8 million during the first quarter ended Dec. 31 were up 27% from $194.5 million a year earlier.

Sales in the Other segment, which includes The Hawthorne Gardening Company, Canada and Asia Pac businesses, increased 74% to $96.9 million owing largely to the recent acquisitions of Botanicare and Gavita.

U.S. Consumer segment sales increased 11% to $125.5 million, while sales for the Europe Consumer business declined 5% (but were up slightly when excluding the impact of foreign exchange rates).

However, the company reported a net loss during the quarter, which is normal given the seasonal nature of the lawn and garden category. There was some improvement from the previous year's loss of $81.3 million to this year's loss of $65.3 million.

“I am encouraged by the strong start in the U.S. consumer business, as well as our tight spending control for the quarter, and our favorable commodity positions for the year,” said Randy Coleman, chief financial officer. “These factors and others give me continued confidence that pro forma adjusted earnings for fiscal 2017 will range between $4.10 and $4.30 per share on sales growth of 6 to 7 percent.”