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Dec 31, 2022
Scotts Q1 2023 Earnings Report
ScottsMiracle-Gro's first quarter results reflected a disciplined approach to reorienting the business and strengthening operational and financial performance.
Key Takeaways
ScottsMiracle-Gro reported a 7% decrease in total company sales to $527 million, driven by a 31% decline in Hawthorne segment sales, while U.S. Consumer sales increased by 8%. The company's GAAP loss was $1.17 per share, with a non-GAAP adjusted loss of $1.02 per share. Project Springboard is expected to deliver $185 million of annualized savings in fiscal 2023.
U.S. Consumer net sales increased 8 percent year-over-year, driven by strong retailer partnerships and record December shipments.
Hawthorne segment sales decreased 31 percent versus prior year due to continued pressure on the hydroponic industry.
Total Company sales declined 7 percent in the quarter to $527 million.
Project Springboard is expected to deliver $185 million of annualized savings in fiscal 2023 ahead of schedule.
Revenue by Segment
Forward Guidance
The Company updated its outlook for fiscal 2023 as compared to fiscal 2022.
Positive Outlook
- Low single-digit percentage growth in adjusted operating income
- Low single-digit percentage growth in adjusted EBITDA
- Free cash flow of $1 billion over the next two years
Challenges Ahead
- 20 to 30 percent decline in Hawthorne segment net sales
- Low single-digit decline in total Company net sales
- Low single-digit decline in gross margin rate
- Interest expense increase of approximately $60 million
- Effective tax rate of 26 to 27 percent
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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