Scotts Miracle-Gro(SMG)

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September 2025 Cannabis Stock Picks: Ancillary Market Leaders
Marijuana Stocks | Cannabis Investments And News. Roots Of A Budding Industry.™· 2025-09-20 14:00
Industry Overview - The U.S. cannabis industry is projected to exceed 40 billion dollars in annual sales by 2025, driven by increasing state approvals for medical and recreational use and discussions on federal legalization [1][11] - Ancillary companies, which provide essential tools to cultivators and dispensaries without directly handling cannabis, are positioned favorably due to lower regulatory risks [1] Company Summaries GrowGeneration (GRWG) - GrowGeneration operates a significant hydroponic and organic gardening supply chain in the U.S., with a strong presence in California and operations in Colorado, Oregon, and Florida [3] - In Q2 2025, GrowGeneration reported net sales of approximately 41 million dollars, showing sequential improvement but a decline from the previous year [3] - Proprietary brands contributed over 30% to cultivation and gardening revenue, with gross profit margins exceeding 28% [3] - The company ended the quarter with nearly 50 million dollars in cash and marketable securities and has no debt, indicating a strong financial position [3] Hydrofarm Holdings Group (HYFM) - Hydrofarm is a leading distributor and manufacturer of hydroponic equipment, focusing on commercial cannabis cultivators in the U.S. and Canada [5] - For the full year 2024, Hydrofarm reported revenue of just over 190 million dollars, a decline of more than 15% year-over-year, with net income negative by over 66 million dollars [7] - The company is working on reducing excess inventory and streamlining operations to control costs, with a focus on improving gross margins [7] Scotts Miracle-Gro (SMG) - Scotts Miracle-Gro is a well-known name in consumer gardening, with its Hawthorne Gardening division supplying hydroponic equipment to cannabis cultivators [8] - In Q3 2025, Scotts reported total revenue of about 1.19 billion dollars, with Hawthorne Gardening's revenue declining by over 50% to around 33 million dollars [10] - Despite the decline in the Hawthorne division, net income rose to nearly 150 million dollars, supported by strength in the broader consumer business [10] Investment Insights - The three companies exemplify the diversity within the ancillary cannabis sector, with GrowGeneration focusing on brand value and retail scale, Hydrofarm addressing revenue challenges through cost discipline, and Scotts leveraging its consumer business stability [11] - As the cannabis industry continues to grow, these ancillary providers are essential to cultivation and supply chains, presenting unique advantages and risks for investors [11]
ScottsMiracle-Gro’s 2025 Corporate Responsibility Report Highlights Gains In Packaging, Waste and Water Conservation
Yahoo Finance· 2025-09-16 14:30
The Scotts Miracle-Gro Company (NYSE:SMG) is among the 12 Best Marijuana Stocks to Buy According to Analysts. The Scotts Miracle-Gro Company (NYSE:SMG) made major strides toward sustainability and ESG targets in its 2025 Corporate Responsibility Report. Key accomplishments for the company included diverting 1.76 million pounds of coir waste for industrial and agricultural use, reducing virgin plastic with Ortho brand reusable pouches, and achieving 100% recyclable packaging for its O.M. Scott & Sons brand. ...
12 Best Marijuana Stocks to Buy According to Analysts
Insider Monkey· 2025-09-15 11:21
Industry Overview - The U.S. administration is considering reclassifying marijuana from Schedule I to Schedule III under the Controlled Substances Act, which could significantly impact the marijuana industry by allowing businesses to access standard banking and reducing their effective tax rates [2] - Currently, marijuana's Schedule I classification limits business deductions under Section 280E of the federal tax code, which could change with reclassification, potentially increasing profitability and attracting institutional investors [2] Analyst Insights - TD Cowen analyst Jaret Seiberg suggests that former President Trump may revive efforts to move cannabis to Schedule III, allowing for government regulation [3] Best Marijuana Stocks - **Aurora Cannabis Inc. (NASDAQ: ACB)**: Analysts project an upside potential of 4.55%. The company launched the Physician Experience Platform (PEP) to provide healthcare professionals with access to clinical insights on medicinal cannabis treatments [8] - **Turning Point Brands, Inc. (NYSE: TPB)**: Analysts project an upside potential of 5.47%. The company launched Stoker's Fine Cut Wintergreen in a compact can, responding to consumer demand and enhancing its moist smokeless tobacco line [9][10] - **The Scotts Miracle-Gro Company (NYSE: SMG)**: Analysts project an upside potential of 12.90%. The company made significant strides in sustainability, including reducing water usage for greenhouse irrigation by over 50% and achieving 100% recyclable packaging for its products [11][12]
Marijuana Stock Outlook For Cannabis Investors 2025
Marijuana Stocks | Cannabis Investments And News. Roots Of A Budding Industry.™· 2025-09-10 16:00
Industry Overview - Investors in marijuana stocks are anticipating news regarding cannabis rescheduling, which historically leads to an increase in stock prices for cannabis companies [1][2] - The cannabis sector has faced challenges but is now showing signs of growth and potential legalization, which could significantly impact stock performance [2][3] Company Highlights - **GrowGeneration Corp.** operates retail stores focused on hydroponic and organic gardening products in the U.S. and has announced participation in the H.C. Wainwright 27th Annual Global Investment Conference [4][6] - **Hydrofarm Holdings Group, Inc.** manufactures and distributes hydroponics equipment in the U.S. and Canada, with its latest financial update released in August 2023 [7][8] - **The Scotts Miracle-Gro Company** engages in the manufacture and sale of gardening products and has recently published its 2025 Corporate Responsibility report, outlining its sustainability goals [10][12] Financial Performance - The Scotts Miracle-Gro Company reported a decrease in net sales to $39.2 million from $54.8 million, with a gross profit margin decline to 7.1% from 19.8% [13] - Adjusted gross profit margin also decreased to 19.2% from 24.4%, while net loss improved to $16.9 million from $23.5 million [13] - The company initiated a restructuring plan aimed at reducing costs and improving operational efficiency [13]
ScottsMiracle-Gro's 2025 Corporate Responsibility Report highlights advancements in recyclable packaging, waste reduction and water conservation
Globenewswire· 2025-08-25 11:15
Core Insights - Scotts Miracle-Gro Company released its 2025 Corporate Responsibility report, highlighting progress in environmental, social, and governance goals aligned with its sustainability strategy [1][2] Group 1: Environmental Initiatives - The company launched the Miracle-Gro Organic Raised Bed & Garden Soil in 2024, made from locally sourced upcycled green waste, and expanded its organic product line in 2025 [5] - Scotts Miracle-Gro diverted 1.76 million pounds of coir waste for agricultural and industrial applications and reduced greenhouse irrigation water use by nearly 50% [5] - The company exceeded its goal of reaching over 157 million people through partnerships focused on water quality, conservation, and pollinator habitat protection [5] Group 2: Community Engagement - The company provided over 180 grants to connect children with gardens and green spaces, supporting various educational and community programs [5] - The Scotts Miracle-Gro Foundation expanded its grant for The Nature Conservancy's water quality initiatives to include the Colorado River Basin [5] Group 3: Company Overview - Scotts Miracle-Gro is the world's largest marketer of branded consumer products for lawn and garden care, with approximately $3.6 billion in sales [4] - The company's brands, including Scotts®, Miracle-Gro®, and Ortho®, are market leaders in their respective categories [4]
Scotts Miracle-Gro: Planting Seeds For Growth (Rating Upgrade)
Seeking Alpha· 2025-08-21 00:58
Core Insights - Scotts Miracle-Gro (NYSE: SMG) has underperformed in the past year, with a loss of approximately 13% in its stock value due to a focus on debt reduction and inventory normalization [1] Company Performance - The company is currently prioritizing debt reduction and normalizing inventory levels, which has impacted its stock performance negatively [1] Market Context - The broader market context includes a trend of companies making contrarian bets based on macro views and turnaround stories to achieve favorable risk/reward profiles [1]
Top Ancillary Cannabis Stocks to Watch This Week as U.S. Legalization Momentum Builds
Marijuana Stocks | Cannabis Investments And News. Roots Of A Budding Industry.™· 2025-08-12 14:00
Industry Overview - The U.S. cannabis industry is projected to generate over $30 billion in annual sales in 2024, with expectations to exceed $50 billion by 2030 due to expanding legalization and rising consumer demand [1] - Recent bipartisan discussions in Congress aim to improve banking access for cannabis businesses, potentially boosting profitability [1] - Ancillary cannabis companies, which provide products and services to cultivators and retailers, benefit from sector growth while avoiding direct plant-touching risks [1][3] Company Highlights - **GrowGeneration (GRWG)**: Operates the largest chain of hydroponic and organic gardening stores in the U.S., reporting net sales of $41 million in Q2 2025, a 14.7% increase from the prior quarter, despite a year-over-year revenue decline [5][8] - **Hydrofarm Holdings Group (HYFM)**: Manufactures and distributes hydroponics equipment, with 2024 revenue of $190.29 million, down 16% from 2023. The company is set to release Q2 2025 results, with a focus on stabilizing revenue [9] - **Scotts Miracle-Gro (SMG)**: Generated approximately $3.55 billion in total revenue in 2024, with a significant improvement in net loss to $34.9 million. The Hawthorne division faced a 35% decline in sales, but the company plans to divest this unit to reduce volatility [10][13] Investment Considerations - Ancillary cannabis stocks like GrowGeneration, Hydrofarm, and Scotts Miracle-Gro provide exposure to the cannabis market while avoiding the complexities of direct sales [14] - GrowGeneration is noted for improving margins and effective cost management, while Hydrofarm is viewed as a watch-and-see opportunity pending upcoming earnings [15] - Scotts Miracle-Gro's planned divestiture of the Hawthorne unit may reshape its market exposure, focusing on core operations for more predictable growth [15]
Scotts Miracle-Gro(SMG) - 2025 Q3 - Quarterly Report
2025-08-06 20:19
[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Unaudited condensed consolidated financial statements for Q3 and nine months ended June 28, 2025, including operations, comprehensive income, cash flows, balance sheets, and detailed notes [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net sales slightly decreased in Q3 2025 and for the nine-month period, while net income increased significantly for both periods Condensed Consolidated Statements of Operations | Financial Metric | Three Months Ended June 28, 2025 | Three Months Ended June 29, 2024 | Nine Months Ended June 28, 2025 | Nine Months Ended June 29, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $1,188.0 M | $1,202.2 M | $3,025.8 M | $3,138.0 M | | **Gross margin** | $378.0 M | $354.1 M | $1,020.7 M | $880.0 M | | **Income from operations** | $215.0 M | $200.1 M | $508.7 M | $424.9 M | | **Net income** | $149.1 M | $132.1 M | $297.1 M | $209.1 M | | **Diluted net income per common share** | $2.54 | $2.28 | $5.07 | $3.64 | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) Comprehensive income increased for both the three and nine months ended June 28, 2025, reflecting net income adjusted for other comprehensive items Condensed Consolidated Statements of Comprehensive Income (Loss) | Metric | Three Months Ended June 28, 2025 | Nine Months Ended June 28, 2025 | | :--- | :--- | :--- | | **Net income** | $149.1 M | $297.1 M | | **Total other comprehensive income (loss)** | $1.2 M | $(0.2) M | | **Comprehensive income** | $150.3 M | $296.9 M | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly decreased for the nine months ended June 28, 2025, leading to a net decrease in cash and cash equivalents Condensed Consolidated Statements of Cash Flows | Cash Flow Activity (Nine Months Ended) | June 28, 2025 | June 29, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $197.2 M | $549.0 M | | **Net cash used in investing activities** | $(60.0) M | $(80.0) M | | **Net cash used in financing activities** | $(158.2) M | $(221.1) M | | **Net increase (decrease) in cash** | $(20.5) M | $248.0 M | | **Cash and cash equivalents at end of period** | $51.1 M | $279.9 M | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 28, 2025, total assets were $3,090.6 million, with a total equity deficit of $170.9 million, reflecting changes in receivables and debt Condensed Consolidated Balance Sheets | Balance Sheet Item | June 28, 2025 | September 30, 2024 | | :--- | :--- | :--- | | **Total current assets** | $1,283.3 M | $980.4 M | | **Total assets** | $3,090.6 M | $2,871.9 M | | **Total current liabilities** | $798.6 M | $750.3 M | | **Long-term debt** | $2,136.2 M | $2,174.2 M | | **Total liabilities** | $3,261.5 M | $3,262.5 M | | **Total equity (deficit)** | $(170.9) M | $(390.6) M | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes explain accounting policies, including the consolidation of THC, accounts receivable sales, debt covenant compliance, and segment performance - The company sold its subsidiary The Hawthorne Collective, Inc. ("THC") but determined it is the primary beneficiary of the acquiring entity (BDH), a variable interest entity, and therefore continues to consolidate it[24](index=24&type=chunk) - Under its Master Receivables Purchase Agreement, the company sold **$1,708.9 million** of accounts receivable during the nine months ended June 28, 2025. Net receivables derecognized from the balance sheet were **$418.8 million** as of that date[27](index=27&type=chunk) Debt Covenant Compliance | Debt Covenant | Requirement | Actual as of June 28, 2025 | | :--- | :--- | :--- | | **Maximum Leverage Ratio** | ≤ 5.00 | 4.15 | | **Minimum Fixed Charge Coverage Ratio** | ≥ 1.00 | 1.47 | Segment Net Sales (Nine Months Ended June 28, 2025) | Segment | Amount | | :--- | :--- | | **U.S. Consumer** | $2,682.6 M | | **Hawthorne** | $115.9 M | | **Other** | $227.3 M | | **Consolidated** | $3,025.8 M | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%20%28MD%26A%29) Management discusses a 3.6% net sales decrease, primarily from the Hawthorne segment, offset by improved gross margin and strong debt covenant compliance [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Net sales decreased 3.6% for the nine months ended June 28, 2025, but gross margin rate improved significantly, leading to higher net income Contribution to Change in Net Sales | Contribution to Change in Net Sales | Three Months Ended June 28, 2025 | Nine Months Ended June 28, 2025 | | :--- | :--- | :--- | | **Volume and mix** | (0.9)% | (2.8)% | | **Pricing** | (0.2)% | (0.6)% | | **Foreign exchange rates** | (0.1)% | (0.2)% | | **Total Change in net sales** | **(1.2)%** | **(3.6)%** | Contribution to Change in Gross Margin Rate | Contribution to Change in Gross Margin Rate | Three Months Ended June 28, 2025 | Nine Months Ended June 28, 2025 | | :--- | :--- | :--- | | **Volume, mix and other** | 2.5% | 2.9% | | **Material costs** | 0.9% | 1.8% | | **Pricing** | (0.2)% | (0.5)% | | **Impairment, restructuring and other** | (0.6)% | 1.6% | | **Total Change in gross margin rate** | **2.3%** | **5.7%** | - Interest expense for the nine months ended June 28, 2025, decreased by **18.8%** to **$102.0 million**, driven by lower average borrowings of **$341.7 million** and a **50 basis point** decrease in the weighted average interest rate[132](index=132&type=chunk) [Segment Results](index=35&type=section&id=Segment%20Results) U.S. Consumer sales slightly declined but profit rose, Hawthorne sales sharply decreased but became profitable, and Other segment sales and profit increased Segment Performance | Segment | Net Sales (9M 2025) | % Change YoY | Segment Profit (9M 2025) | Segment Profit (9M 2024) | | :--- | :--- | :--- | :--- | :--- | | **U.S. Consumer** | $2,682.6 M | (0.8)% | $638.1 M | $580.5 M | | **Hawthorne** | $115.9 M | (45.9)% | $0.7 M | $(9.2) M | | **Other** | $227.3 M | 3.4% | $22.7 M | $13.0 M | [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) Operating cash flow decreased significantly, but the company maintained strong compliance with all debt covenants and substantial borrowing availability - Net cash provided by operating activities decreased from **$549.0 million** to **$197.2 million** for the nine months ended June 28, 2025, compared to the prior year[147](index=147&type=chunk)[148](index=148&type=chunk) - As of June 28, 2025, the company was in compliance with all debt covenants and expects to remain so. The leverage ratio was **4.15** against a maximum of **5.00**, and the fixed charge coverage ratio was **1.47** against a minimum of **1.00**[159](index=159&type=chunk)[160](index=160&type=chunk) - The company had **$1,166.9 million** of borrowing availability under its Sixth A&R Credit Agreement as of June 28, 2025[158](index=158&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes occurred in the company's quantitative and qualitative market risk disclosures during Q3 fiscal 2025 - There were no material changes to the company's market risk disclosures from the 2024 Annual Report[187](index=187&type=chunk) [Item 4. Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - Management, including the principal executive and financial officers, concluded that the company's disclosure controls and procedures were effective as of June 28, 2025[189](index=189&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the fiscal quarter[190](index=190&type=chunk) [PART II. OTHER INFORMATION](index=43&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) No material developments occurred in previously disclosed legal proceedings, and other claims are not expected to have a material adverse effect - There have been no material developments to the pending legal proceedings previously disclosed in the 2024 Annual Report[191](index=191&type=chunk) [Item 1A. Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) The company's risk factors have not materially changed from those described in its 2024 Annual Report on Form 10-K - The company's risk factors have not materially changed from those described in the 2024 Annual Report[193](index=193&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Dividend payments are limited by the credit agreement, and the company has no active share repurchase program, with minor share purchases by a trustee - The company's credit agreement limits regularly scheduled cash dividends to holders of its Common Shares to an aggregate amount not to exceed **$225.0 million** per fiscal year[198](index=198&type=chunk) - The company does not have an active share repurchase program. A total of **4,449 shares** were purchased during the quarter by a trustee for an executive retirement plan[199](index=199&type=chunk)[201](index=201&type=chunk) [Item 3. Defaults Upon Senior Securities](index=44&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the reporting period - None[202](index=202&type=chunk) [Item 5. Other Information](index=44&type=section&id=Item%205.%20Other%20Information) No director or officer adopted, modified, or terminated any Rule 10b5-1 trading arrangements during the quarter - No director or officer adopted, modified, or terminated any Rule 10b5-1 trading arrangement during the quarter[204](index=204&type=chunk) [Item 6. Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section indexes exhibits filed with Form 10-Q, including officer certifications, subsidiary lists, and XBRL data files - The report includes a list of exhibits filed, such as certifications, lists of subsidiaries, and XBRL data files[205](index=205&type=chunk)[208](index=208&type=chunk)
Scotts Miracle-Gro's Q3 Earnings Top, Revenues Lag Estimates
ZACKS· 2025-08-06 13:55
Core Insights - Scotts Miracle-Gro Company (SMG) reported a third-quarter fiscal 2025 profit of $149.1 million or $2.54 per share, an increase from $132.1 million or $2.28 per share in the same quarter last year [1] - Adjusted earnings were $2.59 per share, up from $2.31 a year ago, surpassing the Zacks Consensus Estimate of $2.19 [1] - Net sales decreased by approximately 1.2% year over year to $1,188 million, missing the consensus mark of $1,230.9 million [1] Segment Performance - In the U.S. Consumer division, net sales increased by 1% year over year to $1,030.2 million, although it fell short of the estimate of $1,071.4 million; the segment's profit rose by 12% to $235.5 million [2] - The Hawthorne segment experienced a significant decline, with net sales plummeting 54% year over year to $31.2 million, missing the estimate of $56.5 million [2] - The other segment saw an 8% increase in net sales year over year to $126.6 million, exceeding the estimate of $100.2 million, and reported a profit of $16.8 million, up 44% year over year [3] Financial Position - At the end of the quarter, the company had cash and cash equivalents of $51.1 million, down from $279.9 million a year ago; long-term debt was $2,136.2 million, a decrease of approximately 12.3% year over year [4] Future Outlook - The company reaffirmed its full-year adjusted fiscal 2025 outlook, projecting low single-digit growth in U.S. Consumer net sales, excluding non-recurring sales from AeroGarden and bulk raw materials; adjusted gross margin is expected to be around 30% [5] - Adjusted EBITDA is anticipated to be between $570 million and $590 million, with adjusted earnings per share projected to be at least $3.50 and free cash flow estimated at approximately $250 million [5] Stock Performance - Shares of Scotts Miracle-Gro have declined by 10.5% over the past year, contrasting with a 10.2% rise in the industry [6]
ScottsMiracle-Gro Announces Changes to Board of Directors
Globenewswire· 2025-08-05 20:15
Core Insights - The Scotts Miracle-Gro Company announced changes to its Board of Directors, with retired Lt. General John R. Vines retiring and former General Scott Miller appointed to the open seat [1][2][3] Board Changes - John R. Vines retired after over 12 years on the Board, maintaining an advisory role as Board member emeritus [2] - Scott Miller, a retired U.S. Army General with extensive military leadership experience, has been appointed to the Board [3][4] Leadership and Experience - Miller has commanded at all military levels and has a distinguished record, including leadership in complex geopolitical regions and significant combat experience [3][4] - The Board aims to enhance its skills and perspectives, with Miller being the sixth new member since 2022 [4] Company Overview - Scotts Miracle-Gro is the world's largest marketer of branded consumer lawn and garden products, with approximately $3.6 billion in sales [5]