Here are 1-2 brief analogies for Scotts Miracle-Gro (SMG):

• The Procter & Gamble of lawn and garden supplies.
• The Sherwin-Williams for your backyard.

• Scotts Lawn Care Products: A range of fertilizers, grass seeds, and weed control solutions designed for maintaining healthy lawns.
• Miracle-Gro Garden Care Products: Plant foods, potting mixes, and soils formulated to nourish and promote growth in gardens and containers.
• Ortho Pest and Disease Control: Products for managing insect pests, weeds, and plant diseases in and around the home and garden.
• Tomcat Rodent Control: Baits and traps developed to control and eliminate rodents in residential and commercial settings.
• Bonnie Plants: Live goods, including vegetable, herb, and flower plants, offered to consumers for home gardening.
• Hawthorne Gardening Company Products: Specialized nutrients, growing media, and equipment for hydroponic, indoor, and specialty cultivation.

Jim Hagedorn, Chairman and Chief Executive Officer

Jim Hagedorn played a pivotal role in orchestrating Miracle-Gro's merger with Scotts in 1995, leading to the creation of the world's largest consumer lawn and garden business. He assumed the role of CEO for the combined company in 2001 and was appointed Chairman of the Board of Directors in 2003. His father, Horace Hagedorn, founded the original Miracle-Gro company in 1951. Before his extensive career in the lawn and garden industry, Hagedorn served seven years as a captain and F-16 fighter pilot in the United States Air Force. He previously held an executive position at Miracle-Gro Products Ltd. In 1994, after SC Johnson attempted to acquire Miracle-Gro, Jim Hagedorn devised a countermove that resulted in the merger with Scotts. Following the merger, he was instrumental in replacing the previous Scotts management team due to inflated sales figures.

Mark Scheiwer, Executive Vice President, Chief Financial Officer and Chief Accounting Officer

Mark Scheiwer is slated to assume the role of interim Chief Financial Officer and Chief Accounting Officer starting January 1, 2025. He has been with Scotts Miracle-Gro for over 13 years, holding various finance leadership positions within the company. Prior to his current appointment, he served as Vice President and Treasurer since December 2022. He has also held the role of controller and was involved in leading the Hawthorne finance team.

Nate Baxter, President and Chief Operating Officer

Nate Baxter was appointed President and Chief Operating Officer with expanded responsibilities for executing company strategies and overseeing brands, sales, and the supply chain, effective November 26, 2024. He joined Scotts Miracle-Gro in April 2023 as Executive Vice President of Technology and Operations and became Chief Operating Officer in September 2023. Before joining Scotts Miracle-Gro, Baxter served as president of TEL U.S. and worked with Intel Corporation, focusing on technology and operations.

Chris Hagedorn, Executive Vice President and Chief of Staff

Chris Hagedorn was promoted to the newly created role of Executive Vice President and Chief of Staff, effective November 26, 2024. In this role, he is responsible for company strategy and corporate affairs, including corporate communications and government relations, while continuing to oversee the Hawthorne business. He joined Scotts Miracle-Gro in 2011 and previously served as the division president of Hawthorne Gardening. Chris Hagedorn's father is Jim Hagedorn, the current Chairman and CEO.

Dimiter Todorov, Executive Vice President, Chief Legal Officer & Corporate Secretary

Dimiter Todorov serves as the Executive Vice President, Chief Legal Officer & Corporate Secretary for The Scotts Miracle-Gro Company.

1. Raw Material and Production Costs, and Supply Chain Disruptions: A significant risk for Scotts Miracle-Gro stems from potential disruptions in the availability or price of key raw materials, as well as increases in commodity prices. This can negatively impact the company's ability to manage its cost structure, potentially limiting its capacity to raise selling prices to offset these increases. Furthermore, sustained price increases could lead to declines in sales volume and market share if competitors do not adjust their prices or if consumers are unwilling to pay higher prices. The company's transportation networks are also vulnerable to disruptions, including congestion, a lack of capacity, higher fuel costs, and labor disputes, which can further lead to increased costs and reduced sales.
2. Challenges in the Hawthorne Segment: The Hawthorne segment, which focuses on indoor and hydroponic growing products, has experienced significant operational challenges. An oversupply of cannabis in the market has led to reduced cultivation and consolidation among retail establishments, directly impacting the segment's sales volume and overall profitability.
3. High Debt Load and Financial Leverage: Scotts Miracle-Gro operates with a substantial debt load and high financial leverage, which is identified as a key risk factor. As of the end of fiscal year 2025, the company's total debt stood at approximately $2.11 billion. This significant leverage could limit the company's financial flexibility and adversely affect its financial condition, particularly during periods of prolonged higher interest rates.

• Intensifying competition and oversupply within the cannabis cultivation market, directly impacting demand and pricing for Hawthorne Gardening Company's hydroponic and growing supplies.
• Accelerating adoption of water-wise landscaping (e.g., xeriscaping) and smaller, less resource-intensive outdoor spaces, particularly in drought-prone regions, which could reduce long-term demand for traditional lawn care products.

Scotts Miracle-Gro (SMG) operates in several key addressable markets for its main products and services:

Consumer Lawn and Garden Products

• The U.S. lawn and garden products market is projected to reach $83 billion in 2025 and $102 billion by 2028.
• The global lawn and garden consumables market is valued at USD 24.1 billion in 2025 and is projected to reach USD 36.7 billion by 2035. North America held the largest share of this market, with the U.S. market specifically valued at USD 8.5 billion in 2025.
• The U.S. lawn and garden consumables market size was evaluated at USD 6.97 billion in 2024 and is projected to be worth approximately USD 12.75 billion by 2034.
• The U.S. lawn care market, which includes professional landscaping, pest management, and maintenance services, was valued at USD 293.26 billion in 2024 and is estimated to reach USD 487.1 billion by 2033.

Hydroponics and Indoor Growing Equipment

• The global hydroponics market was valued at USD 14.73 billion in 2024 and is projected to reach USD 33.12 billion by 2033. North America currently dominates this market.
• Another estimate places the global hydroponics market at USD 16.3 billion in 2025, projected to grow to USD 55.4 billion by 2035.
• The U.S. indoor farming market, which includes hydroponics, was estimated at USD 3.99 billion in 2023, is expected to grow to USD 4.40 billion in 2024, and is projected to reach USD 8.64 billion by 2030.

Share Repurchases

• The company repurchased $257.9 million of its common stock in fiscal year 2022.
• Share repurchases amounted to $9.3 million in fiscal year 2023 and $5.1 million in fiscal year 2024.
• In February 2020, Scotts Miracle-Gro authorized a program to repurchase up to $750 million of its shares over the following three years.

Share Issuance

• Cash received from the exercise of stock options was $4.0 million in the first three months of fiscal year 2023 (ending December 31, 2022).
• Cash received from the exercise of stock options was $0.6 million in the first three months of fiscal year 2024 (ending December 30, 2023).

Outbound Investments

• In May 2022, Scotts Miracle-Gro acquired Cyco Flower, a crop input manufacturer, for $34 million.
• Other acquisitions in January 2022 included Luxx Lighting for $215 million and True Liberty for $10 million.
• The company acquired Rhizoflora's nutrients business (Terpinator and Purpinator brands) for $33.5 million in August 2021.
• Scotts Miracle-Gro is actively pursuing a strategic exit from its Hawthorne business and discontinued underperforming business lines, including an AeroGarden write-down in fiscal year 2024.

Capital Expenditures

• Capital expenditures totaled $160.8 million in fiscal year 2021, $170.1 million in fiscal year 2022, $137.9 million in fiscal year 2023, and $151.7 million in fiscal year 2024.
• The company plans to invest in technology to achieve $150 million in supply chain cost savings over three years (FY2025-2027) and is reducing distribution centers from 18 to 5 by year-end.
• Scotts Miracle-Gro is investing over $35 million in research and development, with a focus on innovations such as CRISPR.