Scotts Miracle-Gro reports strong demand
With a pandemic crisis plan in place, soil sales surge
In a preliminary second-quarter report, The Scotts Miracle-Gro Company reported a surge in edible gardening, professional growing and pest control.
“Demand in nearly all areas of the business has surged in recent weeks and we have benefited as a result,” said Randy Coleman, executive VP and CFO. “However, we have been more focused on understanding the potential challenges that may accompany a dramatic slowing of the economy in the weeks ahead and ensuring we are well-positioned to manage those issues.”
In the U.S. consumer segment, demand increased sharply in March, resulting in an increase in consumer purchases approaching 25% for the second quarter. During the month, soil purchases were up nearly 35%. Insect control purchases were up nearly 45%.
And at Bonnie Plants, in which Scotts owns a 25% interest, consumer purchases were up almost 60% in March. There were many markets in the south that were up more than 100%, the company said.
These gains are taking place as the company leans on its pandemic crisis plan, which has been in place for nearly a decade, Scotts said.
“In addition to the safety protocols we’ve put in place I want to ensure that our people don’t suffer economic harm from a crisis that, for most of them, came out of nowhere,” said Hagedorn, a former board member of the Center for Disease Control Foundation. “This is a family business and that fact is key to why we have thrived for more than 150 years. Our ScottsMiracle-Gro family remains our top priority.”
Hagedorn said the Scotts has implemented a premium pay allowance for employees in its field sales force as well as those still working in manufacturing or distribution centers. The company also continues to honor the contracts of third-party vendors that manage functions such as wellness, food, mail and janitorial services in office facilities that are currently closed.
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