Scotts Miracle-Gro Company (SMG) reports earnings

The Scotts Miracle-Gro Company (SMG-0.88%) has submitted its 10-K filing for the fiscal year ended September 30, 2024.

The filing reports net sales of $3,552.7 million, consistent with the previous year. The U.S. Consumer segment saw a 6% increase in sales, while the Hawthorne segment experienced a 36.9% decline.

Gross margin increased to 23.9% from 18.5% in the prior year, attributed to lower warehousing and transportation costs and decreased material costs.

Operating expenses included $559.0 million in selling, general, and administrative expenses, slightly up from $551.3 million in 2023, driven by higher advertising expenses.

Impairment, restructuring, and other charges totaled $146.3 million, down from $466.1 million in 2023. This includes $64.6 million in impairment charges related to convertible debt investments.

The company reported a net loss of $34.9 million, or $0.61 per diluted share, compared to a net loss of $380.1 million, or $6.79 per diluted share, in the previous year.

Interest expense decreased to $158.8 million from $178.1 million due to lower average borrowings, despite an increase in weighted average interest rates.

Cash provided by operating activities was $667.5 million, an increase from $531.0 million in 2023, driven by lower accounts receivable and higher gross margin.

Cash used in investing activities was $100.4 million, primarily for investments in property, plant, and equipment, and an additional equity interest in Bonnie Plants, LLC.

Cash used in financing activities totaled $527.9 million, which included $391.0 million in net debt repayments and $151.3 million in dividends paid.

Scotts Miracle-Gro's leverage ratio was 4.86 at the end of the fiscal year, with $1,167.0 million of borrowing availability under its credit facility.

This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Scotts Miracle-Gro Company annual 10-K report dated November 26, 2024. To report an error, please email earnings@qz.com.