Scotts Miracle-Gro Company reported a company-wide sales increase of 28 percent in the third quarter, including 72 percent growth for Hawthorne – its indoor cultivation and hydroponic subsidiary.
Separately, Scotts Miracle-Gro Board of Directors approved payment of a special dividend of $5 per share and increased its regular quarterly dividend by 7 percent to $0.62 per share, the company said in a press release. Both dividends are payable September 10 to shareholders of record on August 27.
For the quarter – which ended on June 27, 2020 – company-wide sales increased 28 percent to $1.49 billion. U.S. Consumer sales increased 21 percent to $1.08 billion from $889.1 million. Hawthorne sales increased 72 percent to $302.9 million compared with $176.3 million. Segment income increased 14 percent for U.S. Consumer sales to $310.5 million and 145 percent for Hawthorne to $41.1 million.
Scotts Chairman and CEO Jim Hagedorn called the year so far an “unprecedented success” and said the board decided to make special one-time payments later this year to nearly 3,000 hourly and salaried associates who do not participate in bonus plans and enhance bonus payments to another nearly 1,500 eligible associates who do participate in incentive plans. Additionally, Hagedorn said the company plans to double its charitable contributions.
“Our results this year continue to exceed our most optimistic expectations and are a testament to the critical nature of the categories in which we compete, the commitment of our retail partners, and the loyalty of the consumers and cultivators who rely on our products for their success. As we enter the final weeks of fiscal 2020 and prepare for the start of our next fiscal year, we remain optimistic about the strength of our business as well as our ability to continue to enhance shareholder value.” – Hagedorn in a statement
Hagedorn added that Hawthorne saw strong third-quarter growth “in every product category and geography” noting that its growth in the quarter was “higher-than-expected.” For the first nine months of the year, Hawthorne sales increased 59 percent to $731.7 million, the company said.
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