ScottsMiracle-Gro updates fiscal '24 guidance at peak of lawn and garden season

Core Insights - The Scotts Miracle-Gro Company reaffirms its two-year free cash flow target of $1 billion and plans to pay down $350 million in debt during fiscal year 2024 [1][2] - The company projects non-GAAP adjusted EBITDA in the range of $530 to $540 million, representing a 20% improvement year-over-year [2][3] - The U.S. Consumer segment is expected to see sales growth of 5 to 7 percent, a revision from earlier guidance of high single-digit growth [2] Financial Performance - The company anticipates a full-year non-GAAP gross margin improvement of at least 250 basis points [1][2] - It aims to reduce leverage to below 5 times EBITDA by the end of the fiscal year [1][4] - The Project Springboard cost-saving initiative is expected to deliver annualized savings of at least $300 million by the end of fiscal 2024 [3] Strategic Initiatives - The company is focused on tightly managing expenses and free cash flow to achieve its debt reduction goals while investing in brands and marketing [3][4] - The Hawthorne segment is projected to achieve break-even or better in non-GAAP adjusted EBITDA by year-end [2] Market Position - 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 [5]