Benzinga | May 5, 2021 10:59AM EDT

Scotts Miracle-Gro Posts Q2 Results, Hawthorne Cannabis Subsidiary Sales Increase 66% YoY To $364M

Scotts Miracle-Gro (NYSE:SMG) reported Wednesday that company-wide sales grew by 32% year-over-year reaching $1.83 billion in the second quarter.

For the first half of fiscal 2021, the company reported sales of $2.58 billion, up by 47% from $1.75 billion in sales posted a year ago.

During the quarter ending April 3, GAAP earnings from continuing operations amounted to $5.44 per share, compared to $4.43 in the same quarter of the prior year.

Non-GAAP adjusted earnings, excluding impairment, restructuring, and other non-recurring items, were $5.64 per share versus $4.50 a year ago.

"The record level of consumer demand we have seen for our lawn and garden products is greater than we expected and may provide upside to the updated guidance we provided for our U.S. Consumer business in early April," Jim Hagedorn, Miracle-Gro chairman and CEO, said.

Here's a breakdown of what the second-quarter earnings report showed:

* U.S. Consumer segment sales increased 23% year-over-year to $1.37 billion.

* Sales for the Hawthorne segment climbed up to $363.8 million, representing a 66% year-over-year increase.

* The company-wide gross margin rate was 36% on a GAAP basis and 36.6% on a non-GAAP adjusted basis.

* Selling, administrative and general expenses totaled $231.5 million, up by 18% on a yearly basis.

* GAAP income from continuing operations was $311.1 million, or $5.44 per diluted share versus $249.8 million, or $4.43 per diluted share, for the second quarter of last year.

Scotts Miracle-Gro, based in Ohio, expects Hawthorne sales to increase 30% to 40% in 2021.

"We continue to see tremendous momentum in all aspects of the business, and we are extremely optimistic in our ability to drive another year of record results," Hagedorn added.

SMG Price Action: Scotts Miracle-Gro shares were trading 2.53% higher at $233.74 at last check Wednesday.

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Photo by Tim Foster on Unsplash