Scotts Miracle-Gro FY sales up 1%
SMG•Scotts Miracle-Gro reported fiscal-year sales growth of 1%, while fourth-quarter sales of $302.9 million missed analyst expectations. It expects fiscal 2027 sales growth of 2% to 4%, adjusted EPS of $4.70 to $4.90 and free cash flow of about $275 million.
1. Fourth-quarter results
Fourth-quarter sales were $302.9 million, below the $306.1 million analyst consensus. The company reported an adjusted loss per share of $2.16, narrower than the expected $2.22 loss, while adjusted EBITDA was a loss of $106.7 million, compared with the expected loss of $100.62 million.
2. Fiscal-year drivers
The company attributed full-year sales growth to higher branded-product sales and expanded e-commerce. Supply-chain savings and pricing actions drove improved gross margin, partly offset by higher commodity and freight costs. Lower interest expense and a lower tax rate aided adjusted EPS growth.
3. Fiscal 2027 outlook
Scotts Miracle-Gro expects fiscal 2027 net sales growth of 2% to 4% and non-GAAP adjusted EPS of $4.70 to $4.90. It projects free cash flow of about $275 million.
