Scotts MiracleGro reported sales gains in the third quarter, with its fast-growing hydroponic, cannabis-friendly Hawthorne division leading the way.
The Marysville, Ohio-based lawn-and-garden-product giant posted 8% overall sales growth to $1.61 billion, driven by growth in its Hawthorne division of 48% to $421.9 million.
The company also announced the acquisition of HydroLogic Purification Systems, based in Santa Cruz, Calif., is a leading provider of products, accessories and systems for water filtration and purification in the cannabis industry. HydroLogic will expand the Hawthorne signature brand portfolio with water filtration and purification products.
HydroLogic will add approximately $20 million in annualized sales.
The company’s overall growths is set against a slight decline in U.S. Consumer purchases of Scotts products. The U.S. Consumer business declined 1% in the quarter, but remains up 4% on a year-to-date basis.
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Bottom line: Net income for the three months ended July 3 was $225.9 million, up from $203.3 million in the same quarter last year.
What the CEO said: “Our results in the third quarter continue to speak to the strength of our brands and the execution of our strategy,” said Jim Hagedorn, chairman and chief executive officer. “Despite difficult year-over-year comparisons, we saw record Q3 sales at Hawthorne with growth in all categories. Our U.S. Consumer business continued to excel despite a modest decline in sales compared with last year’s record levels.”
For more information: The company’s full Q3 earnings call can be accessed here.