Scotts Miracle-Gro(US:SMG) GlobeNewswire News Room·2025-07-30 11:00Core Insights - The Scotts Miracle-Gro Company reported significant improvements in financial metrics for the third quarter of fiscal 2025, indicating progress towards achieving full-year guidance [2][4][8] Financial Performance - U.S. Consumer sales increased by 1% to $1.03 billion compared to $1.02 billion in the same period last year [4] - Total company sales decreased by 1% to $1.19 billion from $1.20 billion year-over-year [4] - GAAP net income for the quarter was $149.1 million, or $2.54 per diluted share, compared to $132.1 million, or $2.28 per diluted share, in the same quarter last year [6][18] - Non-GAAP adjusted net income was $151.5 million, or $2.59 per diluted share, compared to $133.8 million, or $2.31 per diluted share, for the same period last year [6][18] - Non-GAAP adjusted EBITDA for the quarter was $256.1 million, an increase from $236.8 million a year ago [7] Margin and Cost Improvements - GAAP gross margin rate was 31.8%, and non-GAAP adjusted gross margin rate was 32.1%, both showing improvements of 230 and 290 basis points over the prior year, respectively [8] - The improvements in gross margin were attributed to a better product mix and lower costs in materials, manufacturing, and distribution [5] Segment Performance - U.S. Consumer segment net sales grew by 1% year-over-year, while the Hawthorne segment saw a significant decline of 54% [19] - The Other segment, which includes the Canadian business, reported an 8% increase in net sales [19] - Total segment profit (non-GAAP) increased by 12% to $252.3 million compared to $225.8 million in the prior year [21] Outlook - The company reaffirms its full-year non-GAAP fiscal 2025 guidance, expecting continued growth in U.S. Consumer net sales and improved profitability [8][9] - The company anticipates a low single-digit growth in U.S. Consumer net sales for the full year, with adjusted EBITDA projected between $570 million to $590 million [9]