Scotts Miracle-Gro sales are lush in Q4

Sales at Scotts Miracle-Gro Company jumped 79% to $890.3 million in the fourth quarter from sales of $497.7 million in the fourth quarter 2019.

U.S. consumer sales jumped 90% in the quarter to $497 million from $262.6 million in the fourth quarter a year ago as Hawthorne sales soared 68% to 351.9 million for the period. The increase in both segments was across all product categories, geographies, and retail channels, the company reported.

Sales for the full year increased 31% to a record $4.13 billion, compared with $3.16 billion in the prior year. 

Scotts posted a net income of $4.2 million for the fourth quarter, marking a big swing from a net loss of $55.5 million for the same period a year ago. Profits for the full year fell 15.6% to $388.6 from a net income of $460.2 million in 2019.

Scott’s has also announced that it has signed a non-binding letter-of-intent to acquire a 50% equity stake in the Bonnie Plants business. The proposed transaction would be structured as a 50/50 joint venture with Alabama Farmers Cooperative, Inc., the current owner of Bonnie Plants. The proposed deal remains subject to antitrust clearance, due diligence and negotiation of definitive agreements and is expected to close around the end of the calendar year. Financial terms are not disclosed. 

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The Bottom Line: While sales climb 79% in the fourth quarter, the company swings to a profit of $4.2 million for the period. 

What the CEO said: “The momentum we enjoyed throughout fiscal 2020 accelerated further in the fourth quarter and is carrying into the first quarter of fiscal 2021 as well,” said Jim Hagedorn, chairman and CEO. “The 90% fourth quarter increase in our U.S. Consumer segment was driven by continued strong consumer demand and support from our retailers who were replenishing inventory levels in anticipation of continued strength.”

Company info: The full fourth quarter and fiscal 2020 report from Scotts Miracle-Gro is available here.