{"id":473797,"date":"2021-04-08T16:08:16","date_gmt":"2021-04-08T20:08:16","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=473797"},"modified":"2021-04-08T16:08:16","modified_gmt":"2021-04-08T20:08:16","slug":"scottsmiracle-gro-provides-update-to-full-year-financial-guidance-outlines-strategic-priorities-during-investor-day-event","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/scottsmiracle-gro-provides-update-to-full-year-financial-guidance-outlines-strategic-priorities-during-investor-day-event\/","title":{"rendered":"ScottsMiracle-Gro Provides Update to Full-Year Financial Guidance; Outlines Strategic Priorities During Investor Day Event"},"content":{"rendered":"

\nCompany increases Fiscal 2021 outlook for sales and adjusted earnings per share
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MARYSVILLE, Ohio, April 08, 2021 (GLOBE NEWSWIRE) — The\u00a0Scotts Miracle-Gro Company\u00a0(NYSE: SMG) today announced it now expects its U.S. Consumer segment to report sales growth in a range of 4 to 6 percent for fiscal 2021 \u2013 up from a previous range of flat to minus 5 percent. It expects the Hawthorne segment to perform on the high-end of its sales growth guidance range of 20 to 30 percent. As a result, company-wide sales growth is now expected in a range of 8 to 12 percent, an increase from its previous range of 1 to 6 percent.<\/p>\n

During its virtual Investor and Analyst Day event, the Company also said consumer purchases of its core lawn and garden products at its largest retail partners were up more than 20 percent year-over-year entering April.<\/p>\n

The Company now expects adjusted non-GAAP earnings per share \u2013 which excludes impairment, restructuring and other one-time items \u2013 in a range of $8.60 to $9.00 per share, compared with a previous range of $8.00 to $8.40 per share. Free cash flow \u2013 defined as operating cash flow minus capital expenditures \u2013 is now expected to be approximately $250 million, compared with a previous estimate of $325 million. The decline is due primarily to an expected increase in capital expenditures for the year ending September 30, which is needed due to the accelerated pace of growth over the past several years.<\/p>\n

\u201cBy the end of this year, we expect the U.S. Consumer segment will have grown more than 35 percent over the past three years. We never envisioned that,\u201d chairman and CEO Jim Hagedorn said during the event. \u201cAt Hawthorne, our organic growth over this same period has more than doubled the size of that business. This level of growth requires us to look harder at what\u2019s required to meet the future needs of the enterprise.\u201d<\/p>\n

As a result, Hagedorn said the company expects to double the amount of capital expenditures this year to a range of $125 to $150 million and said it is possible a similar investment may be required in fiscal 2022 as well.<\/p>\n

During the meeting, Hagedorn said he believes sustainable double-digit growth in the Hawthorne segment remains achievable, and that the U.S. Consumer segment can continue to grow in a range of 2 to 4 percent in a post-COVID environment.<\/p>\n

\u201cI believe ScottsMiracle-Gro is better positioned than it\u2019s been in at least a decade for growth to be the primary driver of shareholder value,\u201d Hagedorn said. \u201cWe see demographic and other societal trends as a friend of the core lawn and garden category for years to come. At Hawthorne, the potential for sustainable double-digit growth in the coming years is real. So is the opportunity for continued long-term value creation.<\/p>\n

\u201cIn terms of overall use of capital, in addition to ramping up our capital spend in the near-term, we will allocate more dollars toward acquisitions for both the U.S. Consumer and Hawthorne segments. But even if we execute against everything in the current pipeline, we still have plenty of financial capacity.\u201d<\/p>\n

\n About ScottsMiracle-Gro<\/strong>
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With approximately\u00a0$4.1 billion\u00a0in sales, the Company is one of the world’s largest marketers of branded consumer products for lawn and garden care. The Company’s brands are among the most recognized in the industry. The Company’s Scotts\u00ae, Miracle-Gro\u00ae and Ortho\u00ae brands are market-leading in their categories. The Company\u2019s wholly-owned subsidiary,\u00a0The Hawthorne Gardening Company, is a leading provider of nutrients, lighting and other materials used in the indoor and hydroponic growing segment. For additional information, visit us at\u00a0www.scottsmiraclegro.com<\/a>.\u00a0<\/p>\n

\n Cautionary Note Regarding Forward-Looking Statements\u00a0<\/strong>
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Statements contained in this press release, other than statements of historical fact, 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 the Company, the plans and objectives of the Company\u2019s management, and the Company\u2019s assumptions regarding such performance and plans are \u201cforward-looking statements\u201d within the meaning of the U.S. federal securities laws that are subject to risks and uncertainties. These forward-looking statements generally can be identified as statements that include phrases such as \u201cguidance,\u201d \u201coutlook,\u201d \u201cprojected,\u201d \u201cbelieve,\u201d \u201ctarget,\u201d \u201cpredict,\u201d \u201cestimate,\u201d \u201cforecast,\u201d \u201cstrategy,\u201d \u201cmay,\u201d \u201cgoal,\u201d \u201cexpect,\u201d \u201canticipate,\u201d \u201cintend,\u201d \u201cplan,\u201d \u201cforesee,\u201d \u201clikely,\u201d \u201cwill,\u201d \u201cshould\u201d or other similar words or phrases. Actual results could differ materially from the forward-looking information in this release due to a variety of factors, including, but not limited to:<\/p>\n