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Mar 31, 2022
Hydrofarm Q1 2022 Earnings Report
Hydrofarm's financial performance remained flat, but profitability declined due to industry-wide agricultural oversupply and increased expenses.
Key Takeaways
Hydrofarm Holdings Group reported flat net sales and a net loss for the first quarter of 2022, impacted by agricultural oversupply and increased expenses related to acquisitions and distribution center relocation. The company updated its full-year outlook with net sales expected between $480 million and $520 million and adjusted EBITDA between $46 million and $54 million.
Net sales remained flat at $111.4 million compared to the prior year period.
Net loss was ($23.3) million, or ($0.52) per diluted share, compared to net income of $4.9 million, or $0.13 per diluted share.
Adjusted EBITDA decreased to $3.1 million compared to $9.9 million.
The company recorded a $3.2 million inventory reserve during the quarter.
Forward Guidance
The Company is providing an update to its outlook for the full fiscal year 2022 with net sales of approximately $480 million to $520 million and Adjusted EBITDA of $46 million to $54 million.
Positive Outlook
- Sequential improvement from negative organic growth in Q1 to positive organic growth in Q4.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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