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Scotts Miracle-Gro Company (SMG-2.41%) has submitted its 10-Q filing for the quarterly period ended December 28, 2024.
The filing includes financial statements for the quarter, showing net sales of $416.8 million, a 1.6% increase from $410.4 million in the same quarter the previous year. The increase was driven by higher sales volume in the U.S. Consumer segment, partially offset by decreased sales in the Hawthorne segment.
Cost of sales for the quarter was $316.9 million, down from $354.0 million in the previous year. This decrease was attributed to lower material costs and reduced sales volume in the Hawthorne segment.
The company reported a gross margin of $94.8 million, or 22.7% of net sales, compared to $62.2 million, or 15.2% of net sales, in the previous year. The increase in gross margin rate was primarily due to lower material costs and favorable sales mix.
Selling, general, and administrative expenses increased to $124.8 million from $114.8 million, driven by higher short-term variable cash incentive compensation and other associate-related costs.
Net loss for the quarter was $69.5 million, compared to a net loss of $80.5 million in the previous year. Basic and diluted net loss per common share was $1.21, compared to $1.42 in the previous year.
Cash used in operating activities was $445.3 million, compared to $343.2 million in the previous year, due to higher inventory production and the timing of accounts receivable sales.
The company had a working capital of $1,157.6 million as of December 28, 2024. It continues to focus on managing its debt and maintaining compliance with financial covenants under its credit agreements.
The filing also details various financial agreements, including amendments to its credit facilities and the issuance of Senior Notes.
Scotts Miracle-Gro does not anticipate significant changes to its dividend policy, subject to compliance with its credit agreements.
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 quarterly 10-Q report dated February 5, 2025. To report an error, please email earnings@qz.com.