Scotts Miracle-gro Company (the) · NYSE:SMG
Scotts Miracle-gro Company (the) — Q3 2024 Earnings Presentation
21 slides from Scotts Miracle-gro Company (the)'s earnings presentation, Jul 31, 2024
Slide 1: Q3 2024 Quarterly Earnings Report
Q3 2024 Quarterly Earnings Report Third quarter ended June 29, 2024 Supplemental Financial Presentation July 31, 2024 Please view this presentation in conjunction with our Q3 2024 earnings release, which is filed on Form 8-K, our related pre-recorded remarks and additional information regarding our n
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, Chief Executive Officer and President Matt Garth EVP, Chief Financial Officer and Chief Administrative 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 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
Slide 5: Third Quarter Performance Summary
3Q 2024 - 3 Months ended June 29, 2024. Third Quarter Performance Summary Total Company non-GAAP Results vs. Q3 2023 Net sales $1.20 billion +7% Adjusted Gross Margin Rate 29.2% +790 bps SG&A $147.9 million +15% Adjusted Net Income $133.8 million vs. $66.0M Interest Expense $38.8 million -18% Adjust
Slide 6: Q3 2024 Business Update
Q3 2024 Business Update PRESENTED BY Jim Hagedorn Chairman, Chief Executive Officer and President 6
Slide 7: Three Key Objectives for Fiscal 2024 - all on pace
Fiscal 2024. Three Key Objectives for Fiscal 2024 - all on pace Improve Adjusted Gross Margin $560M Free Cash Flow / Advance Strategic Path to drive Adjusted EBITDA $350M Debt Paydown for Hawthorne ● Mid single-digit growth in Lawn & ● Strengthening balance sheet is key to ● Optimizing for future gr
Slide 8: Q3 2024 Financial Update
Q3 2024 Financial Update PRESENTED BY Matt Garth EVP, Chief Financial Officer and Chief Administrative Officer 8
Slide 9: Total Company Net Sales
3Q 2024 - 3 Months ended June 29, 2024. Total Company Net Sales In USD millions ● U.S. Consumer ○ 11% net sales increase versus 3Q last year ○ 10% growth in unit POS through mid-July ○ 3% increase in unit share excluding mulch ● Hawthorne ○ 28% net sales decline versus 3Q last year led by discontinu
Slide 10: Total Company Adjusted Gross Margin Rate
3Q 2024 - 3 Months ended June 29, 2024. Total Company Adjusted Gross Margin Rate Full Year Expectations ● +250 bps or more vs. FY23 ● Favorable mix more than offsetting low single digit pricing decrease ● Project Springboard distribution and other cost savings benefits +790 bps ● Avoid prior year one
Slide 11: Total Company Net Sales and Adjusted Gross Margin Rate
Year-to-date 3Q 2024 - 9 Months ended June 29, 2024. Total Company Net Sales and Adjusted Gross Margin Rate In USD millions Non-GAAP Measures. 11
Slide 12: Fiscal 2024 Leverage Glidepath
Fiscal 2024. Fiscal 2024 Leverage Glidepath 12 Non-GAAP Measures.
Slide 13: 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 Start of Fiscal Year FY16-FY19 13 Non-GAAP Measures.
Slide 14: Appendix
Appendix Third quarter ended June 29, 2024 14
Slide 15: Our Fiscal 2024 Guidance
Fiscal 2024. Our Fiscal 2024 Guidance ● US Consumer: 5% - 7% increase Net Sales ● Hawthorne: 35% - 40% 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 ● ~$160 million in
Slide 16: 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 17: 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 18: Reconciliation of Non-GAAP Financial Measures
3Q 2024 - 3 Months ended June 29, 2024. Reconciliation of Non-GAAP Financial Measures 18
Slide 19: Reconciliation of Non-GAAP Financial Measures
Year-to-date 3Q 2024 - 9 Months ended June 29, 2024. Reconciliation of Non-GAAP Financial Measures 19
Slide 20: Reconciliation of Non-GAAP Financial Measures
Historical Periods. Reconciliation of Non-GAAP Financial Measures 20
Slide 21: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures For the three and nine months ended June 29, 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
Scotts Miracle-Gro Company (The) — Q3 2024 Earnings Presentation on 6ix