Scotts Miracle-Gro (SMG) Q2 FY2024 earnings: revenue $1.5 billion, down 0.4% on the year

Scotts Miracle-Gro Co. (SMG) reported revenue of $1.5 billion for Q2 FY2024, the quarter ended 30 March 2024, down 0.4% on the same quarter a year earlier. Net income was $158 million, up 44.0% on the year, and diluted earnings per share $2.74. The figures are the company's own, from the 10-Q it filed with the SEC on 8 May 2024.

Revenue$1.5 billiondown 0.4%

Net income$158 millionup 44.0%

Diluted EPS$2.74

QuarterQ2 FY2024ended 30 March 2024

The quarter, against the one before and a year earlier

Line	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Revenue	1,525	410	n/a	n/a
Cost of revenue	987	354	n/a	n/a
Gross profit	464	62.2	n/a	n/a
Gross margin	30.4%	15.2%	n/a
Selling, general and administrative	179	115	n/a	n/a
Operating income	272	-47.3	n/a	n/a
Operating margin	17.8%	-11.5%	n/a
Interest expense	44.1	42.8	n/a	n/a
Pre-tax income	220	-114	n/a	n/a
Income tax	62.3	-33.7	n/a	n/a
Effective tax rate	28.3%	n/a	n/a
Net income	158	-80.5	n/a	n/a
Net margin	10.3%	-19.6%	n/a
Diluted EPS	$2.74	-$1.42	n/a	n/a

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Operating cash flow	304	-343	n/a	n/a
Capital expenditure	16.3	37.9	n/a	n/a
Free cash flow	288	-381	n/a	n/a
Free cash flow margin	18.9%	-92.9%	n/a
Cash from investing	-17.9	-53.2	n/a	n/a
Cash from financing	-231	374	n/a	n/a
Share-based compensation	28.1	16.0	n/a	n/a
Buybacks	1.8	3.1	n/a	n/a
Dividends paid	38.8	37.4	n/a	n/a
Dividend per share	$0.66	$0.66	n/a	n/a
Diluted shares, weighted	57m	57m	n/a	n/a
Shares outstanding at period end	57m	57m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Shareholders' equity	-251	-385	n/a	n/a
Debt	2,760	2,969	n/a	n/a
Operating lease liabilities	224	234	n/a	n/a
Finance lease liabilities	15.2	15.2	n/a	n/a
Other liabilities	1,176	883	n/a	n/a
Total liabilities and equity	3,924	3,716	n/a	n/a
Fixed assets	608	610	n/a	n/a
Goodwill	244	244	n/a	n/a
Intangible assets	429	433	n/a	n/a
Cash and equivalents	65.1	10.4	n/a	n/a
Receivables	877	288	n/a	n/a
Inventory	824	1,170	n/a	n/a
Other assets	877	961	n/a	n/a
Total assets	3,924	3,716	n/a	n/a

Quarterly results, the last 12 quarters

	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025 †	Q2 FY2025 †	Q3 FY2025 †	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	374	410	1,525	1,202	415	417	1,421	1,188	387	354	1,460	1,172
Cost of revenue	408	354	987	851	427	317	866	806	360	264	849	805
Gross profit	-57.0	62.2	464	354	-29.5	88.5	542	373	23.5	88.7	610	366
Gross margin	-15%	15%	30%	29%	-7%	21%	38%	31%	6%	25%	42%	31%
SG&A	108	115	179	148	118	125	188	153	137	106	199	146
Operating income	-416	-47.3	272	200	-216	-51.0	345	215	-150	-21.8	402	170
Operating margin	-111%	-12%	18%	17%	-52%	-12%	24%	18%	-39%	-6%	28%	14%
Interest expense	40.0	42.8	44.1	38.8	33.1	33.9	36.6	31.8	26.7	27.2	31.3	28.0
Pre-tax income	-561	-114	220	183	-312	-95.9	301	207	-191	-63.3	365	155
Tax rate	n/a	n/a	28%	28%	n/a	n/a	28%	28%	n/a	n/a	28%	33%
Net income	-468	-80.5	158	132	-244	-69.5	218	149	-152	-125	239	112
Net margin	-125%	-20%	10%	11%	-59%	-17%	15%	13%	-39%	-35%	16%	10%
Diluted EPS	-$8.33	-$1.42	$2.74	$2.28	-$4.29	-$1.21	$3.72	$2.54	-$2.63	-$2.16	$4.04	$1.90
Operating cash flow	535	-343	304	588	118	-445	188	454	174	-370	220	346
Capital expenditure	19.0	37.9	16.3	13.2	16.6	29.3	8.3	16.9	42.9	20.0	18.6	24.5
Free cash flow	516	-381	288	575	102	-475	180	438	131	-390	201	321
Buybacks	0.0	3.1	1.8	0.1	0.1	15.6	2.7	0.1	0.0	8.3	3.3	0.5
Dividends paid	37.1	37.4	38.8	37.5	37.6	39.2	38.8	38.2	38.1	38.3	39.5	38.5
Shares outstanding	56m	57m	57m	57m	57m	58m	58m	58m	58m	58m	58m	58m
Filing	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 30 March 2024, filed 8 May 2024, accession 0001546380-24-000025: the filing on EDGAR. All of Scotts Miracle-Gro Co.'s filings: EDGAR company page.

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