Scotts Miracle-Gro Earnings: Profits Plunge on Weak Demand as Turnaround Efforts Underway

Scotts Miracle-Gro's fiscal 2023 third quarter showed small progress in the company's turnaround efforts to restore profitability. Adjusted EBITDA was down 35% versus the prior-year quarter as the combination of cost inflation, lower volumes, and reduced plant capacity utilization weighed on profits. We've lowered our near-term outlook for the U.S. consumer business to account for the slowdown persisting longer than we had anticipated. Separately, we reduced our outlook for Hawthorne, assuming far slower revenue growth and profitability as the business' smaller operational footprint reduces its long-term growth trajectory.