Scotts Miracle-gro Company (the) · NYSE:SMG
Scotts Miracle-gro Company (the) — Q1 2025 Earnings Presentation
20 slides from Scotts Miracle-gro Company (the)'s earnings presentation, Jan 29, 2025
Slide 1: First Quarter Quarterly Earnings Report
First Quarter ended December 28, 2024 Quarterly Earnings Report Supplemental Financial Presentation January 29, 2025 Please view this presentation in conjunction with our Q1 2025 earnings release, which is furnished on Form 8-K, our related pre-recorded remarks and additional information regarding o
Slide 2: Safe Harbor Disclosure
Safe Harbor Disclosure Statements contained in this presentation, which address activities, events and developments that the Company expects or anticipates will or may occur in the future, including, but not limited to, information regarding the future economic performance and financial condition of
Slide 3: Today's speakers
Today’s speakers Jim Hagedorn Chairman and Chief Executive Officer Mark Scheiwer Interim Chief Financial Officer and Chief Accounting Officer 3
Slide 4: Q&A
Q&A A Q&A session will follow the earnings webcast at approximately 9:30 a.m. ET Jim Hagedorn Nate Baxter Mark Scheiwer Chris Hagedorn Chairman & CEO President & COO Interim CFO & CAO EVP, Chief of Staff to Chairman & CEO Review the press release for registration details. ● To listen to the Q&A, ple
Slide 5: Q1 2025 Business Update
Q1 2025 Business Update PRESENTED BY Jim Hagedorn Chairman and Chief Executive Officer 5
Slide 6: Our Core Convictions
OUR CORE CONVICTIONS. We Muat... POSSESS A DEEP UNDERSTANDING OF OUR CONSUMER AND INSTILL A LOVE OF GARDENING IN EVERY GENERATION. BE STEWARDS OF OUR BRANDS. THEY ARE THE CORE OF QUR BUSNESS PROVIDE CONSUMERS WITH INNOVATIVE AND SUSTAINABLE PRODUCTS THAT MAKE GARDENING EASTER, MORE ACCESSIBLE AND NO
Slide 7: Strategic Focus Areas (Mid-range, End of FY27)
MID-RANGE (END OF FY27) STRATEGIC FOCUS AREAS. We are transforming our business by investing in our key competitive advantages and evolving into a consumer marketing powerhouse to propel our growth and maintain cost advantages ● Averaging 3 percent annually Deliver sustainable net sales ● Focused on
Slide 8: Invest Behind our Brands
Fiscal 2025. Invest Behind our Brands Supported with $40M of incremental investments in our brands in addition to more than 10% of net sales going to customer activation & other programs run by our retail partners Listings & New Innovation Channel Expansion Media & Consumer Share of Shelf Education
Slide 9: Q1 2025 Financial Update
Q1 2025 Financial Update PRESENTED BY Mark Scheiwer Interim Chief Financial Officer and Chief Accounting Officer 9
Slide 10: First Quarter Performance Summary
1Q 2025 - 3 Months ended December 28, 2024. First Quarter Performance Summary Total Company Non-GAAP Results vs. Q1 2024 Net Sales $416.8 million +2% Adjusted Gross Margin Rate 24.0% +1,030 bps SG&A $124.8 million +9% Adjusted Net Loss $(51.0) million vs. $(82.2)M Interest Expense $33.7 million -21%
Slide 11: Financial Objectives for Fiscal 2025
Fiscal 2025. Financial Objectives for Fiscal 2025 Invest Behind Our Brands Drive Margin Recovery Strengthen Balance Sheet ● Maintain and build upon the ● $150M of supply chain cost ● $250 million expected free cash additional listings and share savings over 3 years; flow gains achieved in FY24 to dri
Slide 12: Invest Behind our Brands
Fiscal 2025. Invest Behind Our Brands In millions In billions + 11% - 1% Up low-single - 8% Flat Down 2.4% digits + 2% Approx. Flat Quarter Drivers Full Year Drivers ● Vol/Mix - U.S. ● Price - Reflects the ● Other - Non-repeating ● Vol/Mix - Low-single ● Price - U.S. Consumer ● Other - Non-repeating
Slide 13: Drive Margin Recovery
Fiscal 2025. Drive Margin Recovery ~ + 1,030 bps + ~370 bps Quarter Drivers Full Year Drivers ● Realization of a ● Distribution savings ● Favorable mix from ● ~$75 million of full year ● Distribution savings ● $29 million of one-time significant portion of related to network Hawthorne’s exit of suppl
Slide 14: Strengthen Balance Sheet
Fiscal 2025. Strengthen Balance Sheet 14 Non-GAAP Measures.
Slide 15: Our Fiscal 2025 Guidance
Fiscal 2025. Our Fiscal 2025 Guidance ● US Consumer: Low single-digit growth (excluding impact of non-repeat sales from FY24 for AeroGarden and other bulk raw material sales) Net Sales ● Hawthorne: Mid single-digit decrease ● Total Company: ~Flat Adjusted Gross Margin Rate ● ~30% ● ~17% of Total Com
Slide 16: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 16
Slide 17: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Use of Non-GAAP Measures To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses non-GAAP financial measures. The reconciliations of these non-GAAP financial measures to the m
Slide 18: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Definitions of Non-GAAP Financial Measures The reconciliations of non-GAAP disclosure items include the following financial measures that are not calculated in accordance with GAAP: ● Adjusted gross margin: Gross margin excluding impairment, restructuring
Slide 19: Reconciliation of Non-GAAP Financial Measures
1Q 2025 - 3 Months ended December 28, 2024. Reconciliation of Non-GAAP Financial Measures 19
Slide 20: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures For the three months ended December 28, 2024, the following items were adjusted, in accordance with the definitions above, to arrive at the non-GAAP financial measures: ● During the three months ended December 28, 2024, the Company recorded executive sever
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