Scotts Miracle-Gro has record year
Scotts Miracle-Gro Company (SMG), based in Marysville, Ohio, reported record full year financial results driven by company-wide sales increases and continued growth in all major operating segments including its subsidiary in hydroponics, Hawthorne Gardening.
The company reported for the year ended Sept. 30, 2021, company-wide sales increased 19% to a record $4.93 billion, compared with $4.13 billion a year earlier. GAAP earnings, Scotts Miracle-Gro stated, from continuing operations were $9.03 per diluted share, compared with $6.78 per diluted share in the prior year.
U.S. Consumer segment sales increased 11% in fiscal 2021. Company-wide sales in the fourth quarter declined by 17% to $737.8 million. Full-year Hawthorne sales increased 39% to $1.4 billion, declined 2% in Q4 despite growth in the U.S.
Scotts Miracle-Gro reported a GAAP loss in Q4 of $0.87 per share, compared with earnings last year of $0.07 per diluted share. The adjusted loss in the quarter was $0.82 per share compared with earnings of $0.06 per diluted share a year ago, the firm added.
The Bottom Line: Scotts Miracle-Gro sales moved ahead 19% company-wide for fiscal year end, noting an 11% increase in U.S. Consumer segment sales, and company-wide Q4 sales declines of 17%. Hawthorne sales increased 39%.
“Our Hawthorne Gardening Company subsidiary is a North American distributor of indoor growing and hydroponic products, serving growers of all sizes,” Scotts Miracle-Gro indicated. “In the U.S., many of these growers cultivate cannabis in compliance with state law.”
What the CEO said: “The continued engagement by consumers throughout the lawn and garden season drove full-year U.S. Consumer sales 11% higher on a full-year basis on top of last year’s 25% growth,” said Jim Hagedorn, chairman and CEO. “Consumer purchases of our products at our largest retail partners – as measured in units – were up 6% for the full year, with growth in every major product category. When compared to 2019,” added Hagedorn, “consumer purchases are up 21% and suggest a level of consumer enthusiasm that we expect to carry into the 2022 lawn and garden season.”
“At Hawthorne, we continued to use our competitive advantages to drive 39% segment growth on a full-year basis despite a 2% decline in the fourth quarter,” noted Hagedorn. “While we saw expected pressure on Hawthorne’s Q4 results due to a widely publicized over-supply of cannabis in California, sales of hydroponic supply products in the U.S. increased more than 10%.”
Company info: Click here to read the full third quarter financial report from Scotts Miracle-Gro.