COLUMBUS, Ohio – The Scotts Company recently reported record financial results for the second fiscal quarter ended April 1, 2000. Net sales for the second quarter grew to $720.7 million, a 14 percent increase compared to the $631.5 million reported in the same quarter last year.
North American Professional sales accounted for a small portion of the record results, as they grew modestly to $41.5 million from $40.9 million, a 1.5 percent increase. This segment of the business should soon be less relevant to the company’s earnings as the company recently announced it has signed a definitive agreement to sell its Professional Turf business to The Andersons. The deal was struck in order to focus on strategically important value-added professional horticulture and turf seed segments of the professional business. [For more information on this deal, please click here: Scotts Pro Turf Business Sale Now Definite.]
Earnings before interest, taxes, depreciation and amortization (EBITDA) were $149.7 million, a 15 percent increase over the $130.5 million reported in the second quarter last year. Net earnings increased 29 percent to $63.6 million from $49.3 million.
Charles Berger, chairman and CEO, said, "We are extremely pleased to report our best quarter ever, considerably exceeding expectations. Better-than-expected demand from our retailers for our products led to increased volumes in the second quarter, driving double-digit growth in our core North American consumer businesses."
North American Consumer sales in the second quarter grew 20 percent to $548.7 million, compared with $458.9 million in the same quarter last year. Within the North American group, sales of the largest business group, consumer lawns, increased 16 percent which continues four years of very strong performance. Sales of the consumer gardens group grew 13 percent and consumer growing media group sales rose 24 percent.
International sales remained essentially flat at $130.5 million compared to $131.7 million in the second quarter of last year.
SIX-MONTH RESULTS. For the six months ended April 1, 2000, the company reported net sales of $912.3 million, a 12 percent increase compared with $815.9 million in the same period last year. EBITDA slightly increased to $138.7 million from $135.2 million in the same period last year. Net earnings were $34.0 million compared to $38.9 million, compared to the prior year period.
North American Professional sales were $65.2 million compared with $73.4 million in the first half of fiscal 1999.
North American Consumer sales in the first half of fiscal 2000 grew 22 percent to $650.3 million compared with $531.7 million in the same period last year.
International sales for the six-month period decreased 7 percent to $196.8 million. Excluding the effect of foreign exchange rate changes, International sales increased 1 percent.