Scotts Miracle-Gro Beats Expectations in Q1 as Hydroponics Unit Generates 41% Sales Growth
Scotts Miracle-Gro's (NYSE: SMG) fiscal first-quarter results, released on Wednesday, showed that growth in the cannabis industry is continuing to pay off for the gardening company. Its hydroponics business, Hawthorne, generated the large majority of its significant sales growth.
Quarterly revenue of $365.8 million was up 23% from the prior-year period, which beat analysts' consensus expectation of $342 million. In hydroponics, Hawthorne's revenue of $198.8 million was up 41% from $140.8 million. As cannabis companies ramp up their production of marijuana, demand for hydroponics equipment, which is used to grow plants indoors, year-round, and without soil, goes up.
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