SMG - Scotts Miracle-Gro Reaffirms $1B Cash Flow Target Reduces EBITDA Earnings Expectations Cost-Saving On Track | Benzinga
The Scotts Miracle-Gro Company (NYSE:SMG) updated and reduced its financial projections on Thursday for fiscal year 2024 based on financial results through the end of May, which reflects the peak of its Q3 lawn and garden season. The Ohio-based gardening giant now expects adjusted EBITDA earnings of $530 million to $540 million, which is some 20% higher than last year, but lower than previous guidance of $575 million.
"Despite the season not meeting our operating plan for topline sales and adjusted EBITDA, we are seeing year-over-year growth and feel good about our overall performance," stated Jim Hagedorn, chairman, CEO and president. "We are driving improvement in the most critical financial metrics that strengthen our ability to deliver long-term shareholder returns. By tightly managing expenses and free cash flow, we remain on track to achieve our debt reduction goal while making important investments in our brands, marketing and other value drivers. We have strengthened our financial flexibility to ensure we have the proper resources to manage POS and retailer replenishment through the summer and fall."
The company also changed the projections for its U.S. consumer segment sales growth to somewhere from 5% to 7%, from a prior estimate of high-single digits. Scotts ...