Scotts Miracle-Gro’s segments
The Scotts Miracle-Gro Company (SMG) reports its revenue under three segments—the US Consumer, the Europe Consumer, and the Other segment. The US and Europe Consumer segments are Scotts Miracle-Gro’s mature segments, while the Other segment has been a key driver of the company’s sales lately.
During 3Q17, the company’s overall sales rose 8% YoY (year-over-year) to $1.08 billion from $994 million in 3Q16.
Breaking it down by segments, the US Consumer segment, which contributed ~73% towards the company’s sales in 3Q17, rose 5% YoY to $792 million from $756 million in 3Q16. On the other hand, the Europe Consumer segment, which contributed 9% towards the company’s 3Q17 sales, fell 3% YoY to $93.5 million from $96.2 million.
With the presence of companies (SOIL) such as Central Garden & Pet Company (CENT), Spectrum Brands Holdings (SPB), and HRG Group (HRG), Scotts Miracle-Gro’s sales have been pressured in the US. Scotts Miracle-Gro has delivered lackluster segment sales growth under the US Consumer segment.
The Other segment continued to be the star segment for Scotts Miracle-Gro during 3Q17. The segment contributed 18% towards the company’s 3Q17 sales and saw 36% growth YoY to $192.6 million from $141.2 million in 3Q16.
What’s driving the Other segment?
Recently acquired companies were put in the Other segment. According to the company’s 3Q17 earnings call, Hawthorne is part of the Other segment. Hawthorne rose 146% during the quarter and 160% YTD (year-to-date). The segment also includes the recently acquired Agrolux brand, which makes lights for indoor gardening.
The Other segment provides products designed to cater to indoor and urban garden consumers. These brands might also be used by marijuana growers, which benefited due to legalization in some states in the US.