Scotts Miracle-Gro aims for 3% annual growth, gross margin over 30%, positive outlook
From GlobeNewswire: 2024-07-16 13:30:00
The Scotts Miracle-Gro Company is outlining plans to achieve 3% average annual growth and return to historic gross margin rates above 30%. Reaffirming guidance for fiscal year 2024, with a 10% increase in POS unit growth through June, the company is hosting an Investor Day in Marysville, Ohio to share its strategic objectives and plans for shareholder value creation.
The company is introducing U.S. Consumer and Hawthorne leadership teams to drive growth opportunities with omnichannel retail partnerships. Expecting $150 million in supply chain cost savings over three years, the U.S. Consumer business aims for adjusted gross margin rates above 30%. Hawthorne is focusing on ‘Signature’ brands for meaningful contributions starting in fiscal 2025.
Strategic objectives for fiscal 2025 through fiscal 2027 include 3% net sales growth, improved gross margin rates above 30%, and SG&A in the range of 15-16% of net sales. With operational cost savings reinvested in marketing and innovation, the company targets total EBITDA in excess of $600 million. Plans include a return to balanced capital allocation and financial flexibility.
The Scotts Miracle-Gro Company affirms its 2024 outlook with positive consumer engagement and a 10% increase in POS unit growth through June. On track to achieve full-year guidance, the company will provide fiscal third-quarter financial results on July 31, 2024. Anticipating an annualized free cash flow of over $300 million after debt paydown.
Investor Day materials, including a financial presentation, are available on the company’s investor website. With approximately $3.6 billion in sales, the Company owns leading lawn and garden brands such as Scotts®, Miracle-Gro®, and Ortho®. Subsidiary Hawthorne focuses on indoor and hydroponic growing materials. The Company foresees growth and shareholder value creation through its strategic objectives and plans for the future.
Read more at GlobeNewswire:: ScottsMiracle-Gro to Detail Operating and Financial Targets