ScottsMiracle-Gro Provides Update to Full-Year Financial Guidance; Outlines Strategic Priorities During Investor Day Event
Company increases Fiscal 2021 outlook for sales and adjusted earnings per share
MARYSVILLE, Ohio, April 08, 2021 (GLOBE NEWSWIRE) -- The Scotts Miracle-Gro Company (NYSE: SMG) today announced it now expects its U.S. Consumer segment to report sales growth in a range
of 4 to 6 percent for fiscal 2021 – up from a previous range of flat to minus 5 percent. It expects the Hawthorne segment to perform on the high-end of its sales growth guidance range of 20 to 30
percent. As a result, company-wide sales growth is now expected in a range of 8 to 12 percent, an increase from its previous range of 1 to 6 percent.
During its virtual Investor and Analyst Day event, the Company also said consumer purchases of its core lawn and garden products at its largest retail partners were up more than 20 percent year-over-year entering April.
The Company now expects adjusted non-GAAP earnings per share – which excludes impairment, restructuring and other one-time items – in a range of $8.60 to $9.00 per share, compared with a previous range of $8.00 to $8.40 per share. Free cash flow – defined as operating cash flow minus capital expenditures – is now expected to be approximately $250 million, compared with a previous estimate of $325 million. The decline is due primarily to an expected increase in capital expenditures for the year ending September 30, which is needed due to the accelerated pace of growth over the past several years.
“By the end of this year, we expect the U.S. Consumer segment will have grown more than 35 percent over the past three years. We never envisioned that,” chairman and CEO Jim Hagedorn said during the event. “At Hawthorne, our organic growth over this same period has more than doubled the size of that business. This level of growth requires us to look harder at what’s required to meet the future needs of the enterprise.”
As a result, Hagedorn said the company expects to double the amount of capital expenditures this year to a range of $125 to $150 million and said it is possible a similar investment may be required in fiscal 2022 as well.
During the meeting, Hagedorn said he believes sustainable double-digit growth in the Hawthorne segment remains achievable, and that the U.S. Consumer segment can continue to grow in a range of 2 to 4 percent in a post-COVID environment.
“I believe ScottsMiracle-Gro is better positioned than it’s been in at least a decade for growth to be the primary driver of shareholder value,” Hagedorn said. “We see demographic and other societal trends as a friend of the core lawn and garden category for years to come. At Hawthorne, the potential for sustainable double-digit growth in the coming years is real. So is the opportunity for continued long-term value creation.