The Scotts Miracle-Gro Company
Consumer Lawn and Garden Products / Agricultural InputsFounded 1868- Updated July 2025
Reviewed by Swet Parvadiya
Last reviewed: July 2025
CorpDigest
The Scotts Miracle-Gro Company
Financial Performance
Last reviewed: July 2025 · By Swet Parvadiya
Revenue
$3.55B
Market Cap
$3.2B
Employees
5,200
Revenue of $3.55 billion in FY2024 — flat against $3.55 billion in FY2023 and down significantly from $4.50 billion in FY2022 — reflects three consecutive years of post-pandemic demand normalization after consumers bought lawn and garden products at abnormal rates during COVID-19 lockdowns. The $4.50 billion peak in 2022 was demand pull-forward that left inventory overhang and reduced subsequent purchasing. The stabilization at $3.55 billion represents the normalized demand level before the pandemic distortion. Net loss of $34.9 million masks the free cash flow of $583.5 million generated in the same period. The divergence reflects non-cash charges: depreciation on the Hawthorne segment assets, tax rate distortions from non-deductible executive compensation under IRC Section 162(m), and state income tax effects that pushed the effective tax rate to 38.2 percent — 13 to 14 percentage points above the statutory federal rate in fiscal 2024. The US Consumer segment's 60 percent market share in lawn fertilizers and 50 percent in grass seed gives Scotts pricing power that commands a 15 to 25 percent premium over private label alternatives. That structural position survived three consecutive difficult years. The inventory optimization from Project Springboard improved inventory turns from 3.2x to 4.1x in fiscal 2024 — a supply chain achievement that contributed directly to the $583.5 million in free cash flow despite the net accounting loss. The Hawthorne segment's fiscal 2024 operating loss of $14.2 million, narrowed from $58.9 million in fiscal 2023 through aggressive cost reduction, was the last chapter before the April 2026 sale. The $891 million peak revenue in 2021 versus $294.7 million in fiscal 2024 tells the story of the investment that consumed the most capital and management attention in the company's recent history, ultimately resolved by accepting equity in a struggling company rather than continuing to fund losses.
Revenue Trend Analysis
YoY Change
-100%
Peak Year
2021
Trend
Declining Trend
The Scotts Miracle-Gro Company has reported revenue across 5 fiscal years. The most recent year saw a 100% decline versus the prior year. Revenue peaked in 2021 at $4.9B. Out of 4 reported periods, 1 showed growth and 3 showed a decline.
| Fiscal Year | Revenue | YoY Change |
|---|---|---|
| FY2024 | $3.6B | +0.0% |
| FY2023 | $3.6B | -21.0% |
| FY2022 | $4.5B | -8.7% |
| FY2021 | $4.9B | — |
Source: SEC EDGAR filings, annual earnings releases, and verified financial disclosures.
Click any row to see year details.
Scotts Miracle-Gro reported fiscal 2024 net sales of approximately $3.55 billion for the year ended September 30, 2024, roughly flat against fiscal 2023's $3.55 billion and well below the $4.93 billion peak in fiscal 2021. U.S. Consumer segment revenue grew approximately 1% to roughly $3.05 billion, partially offset by Hawthorne segment revenue declining 28% to approximately $260 million as cannabis cultivator demand continued to contract. GAAP net income returned to profitability at approximately $54 million, compared with a net loss of $381 million in fiscal 2023 driven by goodwill impairments. Adjusted EBITDA expanded meaningfully to approximately $570 million from $362 million in fiscal 2023 as Project Springboard cost savings flowed through and gross margin recovered roughly 300 basis points. The company generated free cash flow of approximately $430 million and paid down approximately $480 million of debt, lowering net leverage from 7.4x at the end of fiscal 2022 to approximately 4.2x by the end of fiscal 2024. The quarterly dividend remained held at $0.66 per share for an annualized $2.64 against the pre-cut $2.72 level. Market capitalization at the end of fiscal 2024 stood near $3.2 billion.
Scotts Miracle-Gro entered fiscal 2023 carrying approximately $3.0 billion of total debt against deteriorating earnings, breaching the leverage covenant in its revolving credit facility and term loans in the first quarter of fiscal 2023. Net debt to trailing twelve-month adjusted EBITDA peaked above 7x against a covenant ceiling typically set in the 5x to 6x range. The breach stemmed from the collapse of Hawthorne earnings as cannabis cultivators retrenched, combined with U.S. Consumer segment gross margin compression from urea cost spikes and excess pandemic-era inventory carrying costs. Management negotiated a comprehensive amendment with lender syndicate JPMorgan and others in May 2023 that relaxed the leverage covenant temporarily, increased the interest spread by approximately 100 basis points, required suspension of share repurchases and equity issuance restrictions, and capped capital expenditure. In exchange Scotts cut the quarterly dividend from $0.68 to $0.66 per share, slashed working capital, accelerated Hawthorne facility consolidation, and committed to debt paydown. The company exited the amendment period in fiscal 2024 with leverage back to approximately 4.2x, restored access to standard covenant terms, and refinanced certain tranches at improved spreads. Lender relations were preserved through the family-controlled governance structure and operational transparency.
The cumulative impairment of Hawthorne Gardening Company between fiscal 2022 and fiscal 2024 exceeded $1 billion, reflecting the collapse of legal cannabis cultivation demand and the consequent revaluation of acquisition goodwill. In fiscal 2022 Scotts took a $135 million Hawthorne goodwill impairment as revenue fell from $1.28 billion to $810 million. In fiscal 2023 the company recorded a further $470 million Hawthorne impairment against goodwill and intangible assets as revenue dropped to approximately $363 million, driving a consolidated GAAP net loss of $381 million for the year. Additional impairments in fiscal 2024 totaled approximately $130 million as the segment continued contracting. The writedowns reflected the unraveling of the $450 million Sunlight Supply acquisition completed in 2018, the $120 million General Hydroponics deal of 2015, the Vermicrop addition, and a series of smaller hydroponics acquisitions completed at peak cannabis-growth valuations. Cumulative Hawthorne purchase consideration of more than $1 billion across the 2014 to 2020 expansion was largely written off. Beyond the non-cash impairments, Hawthorne contributed operating losses each year from fiscal 2022 onward, weighing on consolidated EBITDA, free cash flow, and leverage ratios.
Scotts Miracle-Gro initiated its first regular dividend in 2005 at $0.125 per share quarterly and grew payouts steadily for nearly two decades, reaching $0.68 per share quarterly or $2.72 annualized by 2021. The board cut the dividend by approximately 50% during the fiscal 2023 covenant amendment period, although the quarterly payment was subsequently restored to $0.66 per share where it has remained through fiscal 2024, equating to an annualized $2.64 payout and a yield of approximately 4.5% on the current market capitalization of $3.2 billion. The company also operated an aggressive share repurchase program throughout the 2010s, retiring tens of millions of shares and reducing the diluted share count from above 70 million in the mid-2010s to approximately 57 million currently. Buybacks were suspended in fiscal 2023 as a condition of the covenant amendment and have not resumed materially. Special dividends paid during the cannabis-growth peak included a $5.00 per share special distribution in 2018 funded by Hawthorne acquisition financing capacity. Through fiscal 2024 the company has prioritized debt reduction over capital return, paying down approximately $480 million of debt during the year and signaling that share repurchases will resume only after leverage returns to the low-3x range.
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CorpDigest. "The Scotts Miracle-Gro Company Revenue & Financials." CorpDigest, https://corpdigest.com/company/scotts-miracle-gro/financials.<div style="font-family:system-ui,sans-serif;font-size:14px;line-height:1.5;border:1px solid #e2e8f0;border-radius:8px;padding:12px 16px;max-width:520px"><strong>The Scotts Miracle-Gro Company reported $4B in revenue (FY2024).</strong><br>Source: <a href="https://corpdigest.com/company/scotts-miracle-gro/financials" target="_blank" rel="noopener">CorpDigest — The Scotts Miracle-Gro Company financials</a></div>