Scotts Miracle-Gro cultivates big Q1

Scotts Miracle-Gro Company reported first quarter sales increased 105% to a company record $748.6 million compared to first quarter 2020 sales of $365.8 million.

The Marysville, Ohio-based lawn and garden products manufacturer said that sales for the quarter were driven by strong retailer support in the U.S. consumer segment as well as continued momentum in its Hawthorne hydroponics subsidiary.

First quarter sales for the Hawthorne segment increased 7% to $309.4 million fueled by strong demand in all categories of indoor growing equipment and supplies. U.S. Consumer segment sales increased 147% to $408.2 million.

Scotts Miracle-Gro also reported a net income of $25.2 million for the first quarter, marking a big swing from a net loss of $71.3 million in the previous first quarter. 

Given the seasonal nature of the lawn and garden category, Scotts Miracle-Gro has historically reported a loss during its first quarter. The net income results in 2021 mark the first time that the company has ever reported a first quarter profit.

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The Bottom Line: As sales surge at Scotts Miracle-Gro, so do profits with the company reporting a net income of $25.2 million; the first time the company has reported a first quarter profit.

What the CEO said: “While we anticipated a strong start to fiscal 2021, both the U.S. Consumer and Hawthorne segments surpassed our expectations and put us on a good trajectory for the balance of the year,” said Jim Hagedorn, chairman and CEO of Scotts Miracle-Gro. “In U.S. consumer, we are working closely with our retail partners as they prepare for the upcoming growing season. And Hawthorne continues to demonstrate its best-in-class performance within its industry, working with retailers and growers to help drive their success.

Company info: The full first quarter 2021 report from Scott’s Miracle-Gro is available here.