ScottsMiracle-Gro Provides Update to its Fiscal 2021 Outlook for the U.S. Consumer Segment

Rhea-AI Summary

The Scotts Miracle-Gro Company (NYSE: SMG) announced that it now anticipates positive sales growth in its U.S. Consumer segment, up from previous guidance of flat to -5%. Senior VP Cory Miller noted a significant 25% year-to-date increase in consumer purchases as retailers gear up for peak season. As a result, the company expects to exceed its earnings guidance of $8.00 to $8.40 per share. Specific updated ranges for sales and earnings will be provided later in spring.

Positive

• Anticipated positive growth in the U.S. Consumer segment.
• Consumer purchases up 25% year-to-date.
• Anticipated earnings above prior guidance of $8.00 to $8.40 per share.

Negative

• Ongoing COVID-19 pandemic may negatively impact business.
• Compliance with environmental regulations could increase costs.
• Dependence on a small number of retail customers poses risk.
• Potential loss of earnings from consumer Roundup product agreement.

MARYSVILLE, Ohio, March 01, 2021 (GLOBE NEWSWIRE) -- The Scotts Miracle-Gro Company (NYSE: SMG), one of the world’s leading marketers of branded consumer lawn and garden as well as hydroponic and indoor growing products, announced this morning it now expects to report positive growth in its U.S. Consumer segment, an increase from its previous sales guidance of flat to minus 5 percent on the fiscal year.

“Having just finished fiscal February this past Saturday, we now have enough visibility to say that we expect positive sales growth in the U.S. Consumer business on a year-over-year basis,” Senior Vice President and interim CFO Cory Miller said during the 42nd Annual Raymond James Institutional Investors Conference. “Shipments remain well ahead of last year’s base as retailers prepare for the peak of the lawn and garden season. And consumer purchases of our products at our largest retailers are up 25 percent year-to-date entering March.”

The expected growth in the U.S. Consumer segment also means the Company anticipates it will exceed its current earnings guidance of $8.00 to $8.40 per share on an adjusted basis. The Company said it expects to provide specific updated ranges for both sales and earnings per share later in the spring.

About ScottsMiracle-Gro
With approximately $4.1 billion in sales, the Company is one of the world’s largest marketers of branded consumer products for lawn and garden care. The Company’s brands are among the most recognized in the industry. The Company’s Scotts®, Miracle-Gro® and Ortho® brands are market leading in their categories. The Company’s wholly-owned subsidiary, The Hawthorne Gardening Company, is a leading provider of nutrients, lighting and other materials used in the indoor and hydroponic growing segment. For additional information, visit us at www.scottsmiraclegro.com. 

Cautionary Note Regarding Forward-Looking Statements 
Statements contained in this press release, other than statements of historical fact, which address activities, events and developments that the Company expects or anticipates will or may occur in the future, including, but not limited to, information regarding the future economic performance and financial condition of the Company, the plans and objectives of the Company’s management, and the Company’s assumptions regarding such performance and plans are “forward-looking statements” within the meaning of the U.S. federal securities laws that are subject to risks and uncertainties. These forward-looking statements generally can be identified as statements that include phrases such as “guidance,” “outlook,” “projected,” “believe,” “target,” “predict,” “estimate,” “forecast,” “strategy,” “may,” “goal,” “expect,” “anticipate,” “intend,” “plan,” “foresee,” “likely,” “will,” “should” or other similar words or phrases. Actual results could differ materially from the forward-looking information in this release due to a variety of factors, including, but not limited to:

• The effects of the ongoing COVID-19 pandemic could have a material adverse effect on the Company’s business, results of operation, financial condition and/or cash flows;
• Compliance with environmental and other public health regulations or changes in such regulations or regulatory enforcement priorities could increase the Company’s costs of doing business or limit the Company’s ability to market all of its products;
• Damage to the Company’s reputation or the reputation of its products or products it markets on behalf of third parties could have an adverse effect on its business;
• If the Company underestimates or overestimates demand for its products and does not maintain appropriate inventory levels, its net sales and/or working capital could be negatively impacted;
• If the Company is unable to effectively execute its e-commerce business, its reputation and operating results may be harmed;
• Because of the concentration of the Company’s sales to a small number of retail customers, the loss of one or more of, or significant reduction in orders from, its top customers could adversely affect the Company’s financial results;
• Climate change and unfavorable weather conditions could adversely impact financial results;
• Certain of the Company’s products may be purchased for use in new or emerging industries or segments and/or be subject to varying, inconsistent, and rapidly changing laws, regulations, administrative practices, enforcement approaches, judicial interpretations and consumer perceptions;
• The Company’s operations may be impaired if its information technology systems fail to perform adequately or if it is the subject of a data breach or cyber-attack;
• The Company may not be able to adequately protect its intellectual property and other proprietary rights that are material to the Company’s business;
• In the event the Third Restated Marketing Agreement for consumer Roundup products terminates, or Monsanto’s consumer Roundup business materially declines the Company would lose a substantial source of future earnings and overhead expense absorption;
• Hagedorn Partnership, L.P. beneficially owns approximately 25% of the Company’s common shares and can significantly influence decisions that require the approval of shareholders;
• Acquisitions, other strategic alliances and investments could result in operating difficulties, dilution and other harmful consequences that may adversely impact the Company’s business and results of operations.
  

Additional detailed information concerning a number of the important factors that could cause actual results to differ materially from the forward-looking information contained in this release is readily available in the Company’s publicly filed quarterly, annual and other reports. The Company disclaims any obligation to update developments of these risk factors or to announce publicly any revision to any of the forward-looking statements contained in this release, or to make corrections to reflect future events or developments.

Contact:
Jim King
Executive Vice President
Investor Relations & Corporate Affairs
(937) 578-5622

FAQ

What is the latest sales forecast for Scotts Miracle-Gro (SMG)?

Scotts Miracle-Gro now expects positive sales growth in its U.S. Consumer segment, improving from the previous guidance of flat to -5%.

What are the earnings expectations for SMG for the current fiscal year?

The company anticipates earnings per share exceeding its previous guidance of $8.00 to $8.40.

How much have consumer purchases increased for Scotts Miracle-Gro (SMG)?

Consumer purchases are up 25% year-to-date as of March 2021.

What risks could affect Scotts Miracle-Gro's (SMG) business?

Risks include impacts from the COVID-19 pandemic, regulatory compliance costs, reliance on a few retail customers, and potential loss of earnings from agreements with Monsanto.