Scotts Miracle-gro Company (the) · NYSE:SMG

Scotts Miracle-gro Company (the) — Q2 2024 Earnings Presentation

22 slides from Scotts Miracle-gro Company (the)'s earnings presentation, May 1, 2024

  1. Slide 1: Q2 2024 Quarterly Earnings Report

    Q2 2024 Quarterly Earnings Report Second quarter ended March 30, 2024 Supplemental Financial Presentation May 1, 2024 Please view this presentation in conjunction with our Q2 2024 earnings release, which is filed on Form 8-K, our related pre-recorded remarks and additional information regarding our n

  2. 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

  3. Slide 3: Today's speakers

    Today’s speakers Jim Hagedorn Chairman, Chief Executive Officer and President Matt Garth EVP, Chief Financial Officer and Chief Administrative Officer 3

  4. 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 Matt Garth Chris Hagedorn Chairman, EVP & COO EVP, CFO & CAO President, Hawthorne CEO & President Division Review the press release for registration details. ● To listen to the Q&A, please rema

  5. Slide 5: Second Quarter Performance Summary

    2Q 2024 - 3 Months ended March 30, 2024. Second Quarter Performance Summary Total Company non-GAAP Results vs. Q2 2023 Net sales $1.53 billion Flat Adjusted Gross Margin Rate 35.3% +60 bps SG&A $178.7 million -4% Adjusted Net Income $211.9 million vs. $213.8M Interest Expense $44.1 million -9% Adjus

  6. Slide 6: Q2 2024 Business Update

    Q2 2024 Business Update PRESENTED BY Jim Hagedorn Chairman, Chief Executive Officer and President 6

  7. Slide 7: Three Key Objectives for Fiscal 2024 - all on pace

    Fiscal 2024. Three Key Objectives for Fiscal 2024 - all on pace Drive $575M $560M Free Cash Flow / Advance Strategic Path Adjusted EBITDA $350M Debt Paydown for Hawthorne ● Near record U.S. Consumer Q2 Sales ● Strengthening balance sheet is key to ● Optimizing for future growth and and Total Company

  8. Slide 8: US Consumer Launches Exciting Innovations & Marketing

    2Q 2024 - 3 Months ended March 30, 2024. US Consumer Launches Exciting Innovations & Marketing New Innovations Associated Marketing 8

  9. Slide 9: Q2 2024 Financial Update

    Q2 2024 Financial Update PRESENTED BY Matt Garth EVP, Chief Financial Officer and Chief Administrative Officer 9

  10. Slide 10: Total Company Net Sales

    2Q 2024 - 3 Months ended March 30, 2024. Total Company Net Sales ● U.S. Consumer ○ In line with record set in 2Q 2022 ○ 1.7% increase versus 2Q last year ○ High single digit percentage growth in unit POS through April ● Hawthorne ○ Decline driven by industry headwinds and discontinuing third-party d

  11. Slide 11: Total Company Adjusted Gross Margin Rate

    2Q 2024 - 3 Months ended March 30, 2024. Total Company Adjusted Gross Margin Rate Full Year Expectations ● +250 bps or more vs. FY23 +60 bps ● Favorable mix more than offsetting low single digit pricing decreases ● Project Springboard distribution and other cost savings benefits ● Avoid prior year on

  12. Slide 12: Total Company Net Sales and Adjusted Gross Margin Rate

    Year-to-date 2Q 2024 - 6 Months ended March 30, 2024. Total Company Net Sales and Adjusted Gross Margin Rate 12

  13. Slide 13: Fiscal 2024 Leverage Glidepath

    Fiscal 2024. Fiscal 2024 Leverage Glidepath 13 Non-GAAP Measures.

  14. Slide 14: Company on track to exceed $1 Billion in FCF over 2 years

    Fiscal 2024. Company on track to exceed $1 Billion in FCF over 2 years 14 Non-GAAP Measures.

  15. Slide 15: Appendix

    Appendix Second quarter ended March 30, 2024 15

  16. Slide 16: Our Fiscal 2024 Guidance

    Fiscal 2024. Our Fiscal 2024 Guidance ● US Consumer: High Single-Digit increase Net Sales ● Hawthorne: 25% - 30% decline Adjusted Gross Margin Rate ● 250 bps of improvement ● 15% - 16% of net sales SG&A ● Media investments +12% y/y Adjusted Operating Margin Rate ● 10.5% - 11.0% of net sales ● Flat I

  17. 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

  18. 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

  19. Slide 19: Reconciliation of Non-GAAP Financial Measures

    2Q 2024 - 3 Months ended March 30, 2024. Reconciliation of Non-GAAP Financial Measures 19

  20. Slide 20: Reconciliation of Non-GAAP Financial Measures

    Year-to-date 2Q 2024 - 6 Months ended March 30, 2024. Reconciliation of Non-GAAP Financial Measures 20

  21. Slide 21: Reconciliation of Non-GAAP Financial Measures

    Historical Periods. Reconciliation of Non-GAAP Financial Measures 21

  22. Slide 22: Reconciliation of Non-GAAP Financial Measures

    Reconciliation of Non-GAAP Financial Measures For the three and six months ended March 30, 2024, the following items were adjusted, in accordance with the definitions above, to arrive at the non-GAAP financial measures: ● During fiscal 2022, the Company began implementing a series of Company-wide organ

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