Scotts Miracle-gro Company (the) · NYSE:SMG
Scotts Miracle-gro Company (the) — Q3 2025 Earnings Presentation
29 slides from Scotts Miracle-gro Company (the)'s earnings presentation, Jul 30, 2025
Slide 1: Third Quarter Quarterly Earnings Report
Third Quarter ended June 28, 2025 Quarterly Earnings Report Supplemental Financial Presentation July 30, 2025 Please view this presentation in conjunction with our Q3 2025 earnings release, which is furnished on Form 8-K, our related pre-recorded remarks and additional information regarding our non-
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 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 CFO & CAO EVP, Chief of Staff Review the press release for registration details. ● To listen to the Q&A, please remain on the webcast
Slide 5: Q3 2025 Business Update
Q3 2025 Business Update PRESENTED BY Jim Hagedorn Chairman and Chief Executive Officer 5
Slide 6: Internal and external transformation initiatives will drive cost advantages and propel growth
MID-RANGE (END OF FY27) STRATEGIC FOCUS AREAS. Internal and external transformation initiatives will drive cost advantages and propel growth ● Averaging 3 percent annually focused on our consumer lawn & garden business Deliver sustainable net 01 ● Built on higher-margin products , innovation and dif
Slide 7: Our brand portfolio has the leading position in $11 billion Consumer DIY Lawn & Garden
INDUSTRY OVERVIEW: CATEGORY SIZE: Our brand portfolio has the leading position in $11 billion Consumer DIY Lawn & Garden Fertilizers, Grass Seed, Spreaders Weed, Insect, Rodent Control #1 brand #1 brand in Fertilizers, Grass in Rodent Control Seed & Spreaders #1 brand ~$11B Soils, Mulch, Plant Food
Slide 8: Our Super Powers give us competitive advantages
Fiscal 2025. Our Super Powers give us competitive advantages Brands/Marketing Innovation Supply Chain Sales Industry-leading R&D with Integrated manufacturing and Most powerful brands with low Unparalleled in-store activation science-backed product distribution network within 150 private label press
Slide 9: Transformation includes investments in our brands
Fiscal 2025. Transformation includes investments in our brands Supported by incremental investments in our brands and more than 10% of net sales going to consumer activation & other programs run by our retail partners Listings & New Innovation Channel Expansion Media & Consumer Share of Shelf Educat
Slide 10: Higher investments lead to positive gains in consumer brand health
Fiscal 2025. Higher investments lead to positive gains in consumer brand health Brand Health¹ June FY24 to June FY25 Media Investment FY24 to FY25 Source: Suzy Survey and Internal Data 10 ¹Unaided brand awareness
Slide 11: Consumer activation programs drive strong consumer takeaway
Fiscal 2025. Consumer activation programs drive strong consumer takeaway Lawn and garden consumer is healthy as shown by our year-to-date POS unit growth of 8% Controls Soils Branded Fertilizer Grass Seed +3% +12% +1% +16% Listings and Media and Advertising Consumer Activation Share of Shelf Investm
Slide 12: Lawn category POS gains deserve special callout
Fiscal 2025. Lawn category POS gains deserve special callout Year-to-date branded lawn fertilizers POS units were up 1% representing a shift from the declines experienced in recent years FROM: TO: Single-bag solutions All-season feeding and to treat specific problems multiple-bag solutions for health
Slide 13: Expansion in e-commerce is a key focus area for growth
Fiscal 2025. Expansion in e-commerce is a key focus area for growth Continued growth in e-commerce¹ with year to date penetration of POS dollars² at ~10% 1 2 ps 0b +60 13 ¹E-commerce is defined as retail.com, Amazon and SMG direct sites ²POS dollars include all of SMG’s customers
Slide 14: Transformation includes further enhancing best-in-class supply chain
Fiscal 2025. Transformation includes further enhancing best-in-class supply chain Historically, delivered average net supply chain savings of “ Our supply chain team is doing an outstanding job delivering on cost savings initiatives…$75 million of cost “ Over the past 18 months, we've harnessed the
Slide 15: Domestic sourcing and locked COGs limit tariff exposure
Fiscal 2025. Domestic sourcing and locked COGs limit tariff exposure Full Year Expectations Percent of Total FY25 COGS ● Limited exposure in FY25 given roughly all commodities are locked at close of 3Q25 ~10% ● Of the ~10% total COGS internationally Internationally sourced, ~1/2 are currently exempt
Slide 16: Q3 2025 Financial Update
Q3 2025 Financial Update PRESENTED BY Mark Scheiwer Chief Financial Officer and Chief Accounting Officer 16
Slide 17: Third Quarter Performance Summary
3Q 2025 - 3 Months ended June 28, 2025. Third Quarter Performance Summary Total Company Non-GAAP Results vs. Q3 2024 Net Sales $1.19 billion -1% Adjusted Gross Margin Rate 32.1% +290 bps SG&A $153.4 million +4% Adjusted Net Income $151.5 million vs. $133.8M Interest Expense $31.8 million -18% Adjust
Slide 18: Financial objectives for fiscal 2025 are on track
Fiscal 2025. Financial objectives for fiscal 2025 are on track Invest Behind Our Brands Drive Margin Recovery Strengthen Balance Sheet ● Maintain and build upon the ● $150 million of supply chain ● $250 million expected free cash additional listings and gains cost savings over 3 years; flow achieved i
Slide 19: Net sales performance for the quarter and year-to-date
3Q 2025 - 3 and 9 Months ended June 28, 2025. Net sales performance for the quarter and year-to-date In millions In millions + 1% Flat - 2% - 1% - 1% - 2% 1% Decrease 4% Decrease Quarter Drivers Full Year Drivers ● Vol/Mix - Organic ● Price - Reflects the ● Other - Non-repeating ● Vol/Mix - Organic ●
Slide 20: Net sales performance for the quarter and year-to-date by segment
3Q 2025 - 3 and 9 Months ended June 28, 2025. Net sales performance for the quarter and year-to-date by segment Fiscal Third Quarter (April - June 2025) Fiscal Year-to-Date (October 2024 - June 2025) Net Sales Volume & Foreign Price(2) Other(3) Net Sales Net Sales Volume & Foreign Price(2) Other(3)
Slide 21: Drive margin recovery through cost savings and material cost deflation
3Q 2025 - 3 Months and 9 Months ended June 28, 2025. Drive margin recovery through cost savings and material cost deflation + 290 bps + 410 bps Quarter and Full Year Drivers Fully delivered on the ~$75M of U.S. Consumer Distribution savings related to network Favorable mix from Hawthorne’s exit of su
Slide 22: Strengthen Balance Sheet through further leverage improvement
Fiscal 2025. Strengthen Balance Sheet through further leverage improvement 22 Non-GAAP Measures.
Slide 23: Our Fiscal 2025 Guidance
Fiscal 2025. Our Fiscal 2025 Guidance ● US Consumer: Low single-digit growth (excluding impact of non-repeat Net Sales sales from FY24 for AeroGarden and other bulk raw material sales) Adjusted Gross Margin Rate ● ~30% SG&A ● ~17% of Total Company net sales Other Expense ● ~$5 million increase Inter
Slide 24: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 24
Slide 25: 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 26: 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 27: Reconciliation of Non-GAAP Financial Measures
3Q 2025 - 3 Months ended June 28, 2025. Reconciliation of Non-GAAP Financial Measures 27
Slide 28: Reconciliation of Non-GAAP Financial Measures
3Q 2025 - 9 Months ended June 28, 2025. Reconciliation of Non-GAAP Financial Measures 28
Slide 29: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures For the three and nine months ended June 28, 2025, the following items were adjusted, in accordance with the definitions above, to arrive at the non-GAAP financial measures: ● During the three and nine months ended June 28, 2025, the Company incurred emplo
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