MARYSVILLE, Ohio - The Scotts Miracle-Gro Company (NYSE: NYSE:SMG), a leading marketer in the lawn and garden sector, has announced significant changes to its executive team, including the promotion of two key executives and a transition plan for its chief financial officer. The company is entering the next phase of its growth strategy, focusing on strengthening its consumer franchise and its subsidiary Hawthorne Gardening Company.
Nate Baxter (NYSE:BAX), formerly Chief Operating Officer, has been appointed President and COO, with expanded duties that include executing company strategies and overseeing various operational aspects such as brands, sales, and supply chain. Chris Hagedorn, previously the division president of Hawthorne Gardening, has been promoted to Executive Vice President and Chief of Staff, a newly created role. He will be responsible for company strategy and corporate affairs while continuing to oversee the Hawthorne business.
Matt Garth will step down from his role as CFO on December 31, 2024. Mark Scheiwer, who has been with the company for over 13 years and currently serves as VP and Treasurer, will assume the role of interim CFO and Chief Accounting Officer starting January 1, 2025. The company has initiated a search for a permanent CFO, considering both internal and external candidates.
Jim Hagedorn, Chairman and CEO of ScottsMiracle-Gro, expressed confidence in the new leadership structure, emphasizing the complementary strengths of Baxter and Hagedorn in driving operational efficiency and strategic management. The company aims to build on its market leadership and improve the profitability potential of its Hawthorne subsidiary as part of its three-year growth plan.
Baxter joined the company in April 2023 and has a background in technology and operations, including a role as president of TEL U.S. Chris Hagedorn has been with ScottsMiracle-Gro since 2011 and has a history in strategy, marketing, and communications.
The planned departure of CFO Garth was not due to any disagreement with the company's practices, and he has been credited with contributing to the company's financial stability during his tenure. Scheiwer's extensive experience with the company is expected to ensure a smooth transition in the financial leadership.
The company also reaffirmed its fiscal 2025 guidance, which was previously provided in the fiscal 2024 year-end earnings call on November 6, 2024. This announcement is based on a press release statement from ScottsMiracle-Gro.
In other recent news, Scotts Miracle-Gro announced its fiscal '24 year-end earnings. The company's top executives, including Chairman, President, and CEO Jim Hagedorn, and Chief Financial and Administrative Officer Matt Garth, led the discussion on the company's financial performance, providing forward-looking statements and non-GAAP financial measures. They also held a Q&A session with COO Nate Baxter and Hawthorne Division President Chris Hagedorn. While expressing confidence in the company's performance and future guidance, they acknowledged that actual results might differ from the discussed figures. The company directed listeners to SEC filings for risk factor details. As part of recent developments, an archived version of the earnings webcast will be made available on the company's investor relations website. These details were part of the comprehensive information shared during the webcast, providing insights into the company's past performance and future expectations.
InvestingPro Insights
As ScottsMiracle-Gro (NYSE: SMG) undergoes significant leadership changes to drive its growth strategy, recent financial data and market trends provide additional context to the company's position.
According to InvestingPro data, ScottsMiracle-Gro's market capitalization stands at $4.64 billion, reflecting its substantial presence in the lawn and garden sector. The company's revenue for the last twelve months as of Q4 2024 was $3.55 billion, with a modest revenue growth of 0.04% over the same period. This aligns with the company's focus on strengthening its consumer franchise and improving profitability.
InvestingPro Tips highlight that ScottsMiracle-Gro has maintained dividend payments for 20 consecutive years, demonstrating a commitment to shareholder returns even as it navigates leadership transitions. The current dividend yield is 3.23%, which may be attractive to income-focused investors.
The company's stock has shown significant momentum, with a 51.08% price total return over the past year and a 27.04% return over the last six months. This positive trend could be indicative of market confidence in the company's strategic direction and the potential of its new leadership team.
It's worth noting that while the company was not profitable over the last twelve months, analysts predict it will be profitable this year. This expectation aligns with the company's reaffirmed fiscal 2025 guidance and its three-year growth plan.
For readers interested in a more comprehensive analysis, InvestingPro offers 10 additional tips for ScottsMiracle-Gro, providing deeper insights into the company's financial health and market position.
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