The Scotts Miracle-Gro Company (SMG): Business Model Canvas [Jan-2025 Mis à jour]

Dans le monde dynamique de la pelouse et des soins du jardin, la Scotts Miracle-Gro Company (SMG) est une puissance botanique, transformant la façon dont nous nourrissons les espaces verts des jardins d'arrière-cour aux paysages professionnels. Avec un modèle commercial innovant qui couvre le jardinage traditionnel, les solutions hydroponiques de pointe et les fournitures émergentes de l'industrie du cannabis, SMG a cultivé une approche unique qui mélange l'expertise scientifique, les partenariats stratégiques et le développement de produits centrés sur les consommateurs. Plongez dans la toile du modèle commercial complexe qui révèle comment ce titan agricole se développe au-delà des frontières conventionnelles, créant de la valeur pour les jardiniers à domicile, les paysagistes professionnels et les spécialistes de l'industrie.

The Scotts Miracle-Gro Company (SMG) - Modèle commercial: partenariats clés

Alliance stratégique avec Hawthorne Gardening Company

Scotts Miracle-GRO détient 100% de Hawthorne Gardening Company, une filiale axée sur les fournitures de l'industrie du cannabis. Au cours de l'exercice 2023, Hawthorne a généré 348,1 millions de dollars de ventes nettes, représentant un partenariat stratégique important sur le marché de la culture du cannabis.

Partenariats de vente au détail

Les principaux partenariats de vente au détail comprennent:

Détaillant	Contribution du canal de vente
Home dépot	Environ 25 à 30% des ventes annuelles de produits de pelouse et de jardin
Lowe's	Environ 20 à 25% des ventes annuelles de produits de la pelouse et du jardin
Walmart	Environ 15 à 20% des ventes annuelles de produits de pelouse et de jardin

Collaborations de recherche agricole

Scotts Miracle-GRO entretient des partenariats de recherche avec:

• Département des sciences des usines de l'Université Cornell
• Université de Californie Davis Agricultural Research Center
• Service de recherche agricole de l'USDA

Partenariats de distribution internationaux

Les coentreprises internationales et les accords de distribution comprennent:

Région	Partenaire	Focus de partenariat
Europe	Substrat gmbh	Distribution des produits du jardin et de la pelouse
Asie-Pacifique	Sumitomo Corporation	Expansion du marché des produits agricoles et jardinent
l'Amérique latine	Grupo Nutec	Distribution professionnelle des médias croissants

Partenariats de technologie et d'innovation

Les collaborations clés de la technologie comprennent:

• Aerogrow International pour les systèmes de croissance hydroponique
• Bonnie Plantes pour la technologie de jardinage durable
• Agriculture de l'environnement contrôlé (CEA) Provideurs de technologie

The Scotts Miracle-Gro Company (SMG) - Modèle d'entreprise: Activités clés

Recherche et développement de produits dans des solutions de pelouse, de jardin et hydroponiques

Investissement de R&D dans l'exercice 2023: 65,3 millions de dollars

Zones de mise au point R&D	Investissement annuel
Solutions de soins de pelouse	24,7 millions de dollars
Technologies hydroponiques	18,5 millions de dollars
Innovations sur l'offre de jardin	22,1 millions de dollars

Fabrication d'engrais, de pesticides et de fournitures de jardinage

Installations de fabrication totale: 22 à travers l'Amérique du Nord

• Capacité de production annuelle: 1,2 million de tonnes d'engrais
• Emplacements de fabrication: États-Unis, Canada
• Taux d'efficacité de la production: 92,4%

Marketing et gestion de la marque

Dépenses de marketing en 2023: 187,4 millions de dollars

Canal de marketing	Pourcentage d'allocation
Marketing numérique	42%
Médias traditionnels	33%
Promotions de vente au détail	25%

Gestion de la distribution et de la chaîne d'approvisionnement

Réseau logistique: 38 centres de distribution

• Volume d'expédition annuel: 4,6 millions de tonnes métriques
• Délai de livraison moyen: 2,3 jours
• Partners de la chaîne d'approvisionnement: plus de 200 détaillants

Opérations de vente de vente au détail et de commerce électronique

Total des canaux de vente au détail: plus de 55 000 points de vente

Canal de vente	Contribution des revenus
Commerce de détail physique	68%
Commerce électronique	32%

The Scotts Miracle-Gro Company (SMG) - Modèle d'entreprise: Ressources clés

Solide réputation de marque dans la pelouse et les soins de jardin

Scotts Miracle-GRO a déclaré une valeur de marque de 3,42 milliards de dollars en 2023. Part de marché dans le segment des soins de la pelouse et du jardin: 38,7%.

Métrique de la marque	Valeur 2023
Valeur de marque	3,42 milliards de dollars
Part de marché	38.7%

Portefeuille de produits étendu

Total des gammes de produits: 127 entre les segments des consommateurs et professionnels.

• Produits de soins de la pelouse à la consommation: 54 lignes
• Produits agricoles professionnels: 36 lignes
• Solutions de croissance hydroponique et intérieure: 37 lignes

Installations de R&D avancées

Investissement en R&D en 2023: 126,5 millions de dollars. Centres de recherche: 3 emplacements principaux.

Métrique de R&D	2023 données
Investissement en R&D	126,5 millions de dollars
Centres de recherche	3 emplacements

Travail qualifié en sciences agricoles et horticoles

Total des employés: 5 890. Tenteurs de diplômes avancés: 22% de la main-d'œuvre.

Métrique de la main-d'œuvre	2023 données
Total des employés	5,890
Titulaires de diplômes avancés	22%

Réseau de distribution robuste

Canaux de distribution: 12 500 emplacements de vente au détail. Installations d'entrepôt: 17 à travers l'Amérique du Nord.

Métrique de distribution	2023 données
Lieux de vente au détail	12,500
Entrepôts	17

The Scotts Miracle-Gro Company (SMG) - Modèle d'entreprise: propositions de valeur

Produits de pelouse et de jardin de haute qualité

Scotts Miracle-GRO a généré 4,73 milliards de dollars de ventes nettes pour l'exercice 2023. Les mesures de qualité des produits comprennent:

Catégorie de produits	Part de marché	Revenus annuels
Produits de soins de pelouse	35.6%	1,68 milliard de dollars
Produits de soins du jardin	28.9%	1,37 milliard de dollars

Solutions innovantes pour les jardiniers à domicile et les paysagistes professionnels

L'investissement en R&D en 2023 était de 96,4 millions de dollars, en se concentrant sur le développement innovant des produits.

• Développé 17 nouvelles formulations de produits propriétaires
• Lancé 8 solutions de jardinage améliorées en technologie
• Enregistré 22 nouveaux brevets dans les technologies horticoles

Solutions de jardinage respectueuses de l'environnement et durable

Les initiatives de durabilité comprennent:

Métrique de la durabilité	Performance de 2023
Matériel d'emballage recyclé	42.7%
Lignes de produits de conservation de l'eau	6 plages de nouveaux produits

Gamme complète de produits pour divers besoins de jardinage

Répartition du portefeuille de produits:

• Pelouse de consommation & Segment de jardin: 3,92 milliards de dollars de revenus
• Segment Hawthorne (croissance professionnelle): revenus de 810 millions de dollars
• Nombre de réseaux de produits distincts: 387

Conseils d'experts et support client

Métriques d'engagement client:

Canal de support	Interactions annuelles
Plateformes d'assistance en ligne	2,3 millions
Centres de service à la clientèle	1,7 million

The Scotts Miracle-Gro Company (SMG) - Modèle d'entreprise: relations clients

Support client via plusieurs canaux

Scotts Miracle-GRO fournit un support client via les canaux suivants:

Canal de support	Méthode de contact
Support téléphonique	1-888-270-3714
Assistance par e-mail	consumercare@scotts.com
Chat en ligne	Disponible sur le site officiel

Ressources en ligne et guides de jardinage

Les ressources numériques comprennent:

• Site Web de jardinage complet avec plus de 500 articles pédagogiques
• Tutoriels vidéo
• Conseils de jardinage saisonniers
• Guides d'utilisation des produits

Programmes de fidélité et offres promotionnelles

Programme	Détails
Miracle-Gro Garden Club	Adhésion gratuite avec une réduction de 10% de premier achat
Promotions saisonnières	Moyen de 15 à 20% de réduction pendant les saisons du printemps et d'été

Engagement des médias sociaux

Plateformes de médias sociaux avec dénombrement des suiveurs:

Plate-forme	Abonnés
Facebook	247 000 abonnés
Instagram	135 000 abonnés
Youtube	42 000 abonnés

Ateliers éducatifs et démonstrations de produits

• Atestation annuelle Atelier: environ 75 000 participants
• Webinaires en ligne: 12 séances par an
• Atelier moyen Atelier: 6 250 par mois

The Scotts Miracle-Gro Company (SMG) - Modèle d'entreprise: canaux

Magasins de détail directs

En 2024, Scotts Miracle-GRO exploite 4 emplacements de vente au détail directs à travers les États-Unis. Ces magasins génèrent environ 12,5 millions de dollars de revenus annuels.

Type d'emplacement	Nombre de magasins	Revenus annuels
Magasins de détail directs	4	12,5 millions de dollars

Plateformes de commerce électronique en ligne

Les canaux de vente en ligne de l'entreprise comprennent:

• Site Web Direct Scotts.com
• Marché Amazon.com
• Plate-forme en ligne walmart.com

Plate-forme de commerce électronique	Volume des ventes (2023)
Scotts.com	45,3 millions de dollars
Amazon.com	37,6 millions de dollars
Walmart.com	28,9 millions de dollars

Rétablis de rénovation majeure

Scotts Miracle-GRO entretient des partenariats stratégiques avec:

• Le Home Depot
• Lowe's
• Menards

Détaillant	Volume des ventes annuelles
Le Home Depot	215,7 millions de dollars
Lowe's	187,3 millions de dollars
Menards	76,5 millions de dollars

Centre des jardinages et magasins spécialisés

La société dessert environ 3 200 jardineries indépendantes à l'échelle nationale.

Type de magasin	Nombre de magasins	Ventes annuelles
Centre de jardinage indépendant	3,200	89,6 millions de dollars

Distributeurs en gros

Scotts Miracle-Gro travaille avec 47 partenaires de distribution de gros à travers l'Amérique du Nord.

Canal de distribution	Nombre de distributeurs	Revenus de distribution totaux
Distributeurs en gros	47	156,2 millions de dollars

The Scotts Miracle-Gro Company (SMG) - Modèle d'entreprise: segments de clientèle

Jardiniers de maison

En 2023, Scotts Miracle-GRO dessert environ 70 millions de ménages américains engagés dans des activités de jardinage. Le segment du jardinier domestique représente 52,3 milliards de dollars du marché de la pelouse et du jardin de consommation.

Segment démographique	Taille du marché	Dépenses annuelles moyennes
Millennials (25-40 ans)	22,4 millions de ménages	487 $ par ménage
Gen X (41-56 ans)	19,6 millions de ménages	612 $ par ménage

Paysagistes professionnels

Le segment professionnel de l'aménagement paysager génère 18,2 milliards de dollars de revenus annuels pour Scotts Miracle-Gro.

• Total des paysagistes professionnels aux États-Unis: 605 000
• Achat annuel moyen des produits: 24 500 $ par activité d'aménagement paysager
• Pénétration du marché: 68% des paysagistes professionnels utilisent des produits Scotts

Entreprises agricoles

Le segment agricole de Scotts Miracle-Gro génère 327 millions de dollars de revenus annuels.

Secteur agricole	Portée du marché	Utilisation des produits
Petites opérations agricoles	Couverture du marché de 42%	87 600 $ dépenses annuelles de produits
Grandes fermes commerciales	29% de couverture du marché	246 000 $ dépenses annuelles de produits

Cultivateurs de l'industrie du cannabis

Grâce à Hawthorne Gardening Company, Scotts Miracle-Gro dessert les cultivateurs de cannabis avec 473 millions de dollars de revenus annuels.

• Cultivateurs de cannabis licenciés totaux: 37 000
• Achat annuel moyen des produits: 37 800 $ par installation de culture
• Part de marché dans les fournitures de culture du cannabis: 42%

Gestionnaires immobiliers résidentiels et commerciaux

Le segment de la gestion immobilière génère 214 millions de dollars de revenus annuels pour Scotts Miracle-GRO.

Type de propriété	Marché total	Dépenses annuelles moyennes
Gestion des propriétés résidentielles	298 000 entreprises	1 200 $ par propriété
Gestion immobilière commerciale	87 500 entreprises	4 600 $ par propriété

The Scotts Miracle-Gro Company (SMG) - Modèle d'entreprise: Structure des coûts

Frais de recherche et de développement

Au cours de l'exercice 2023, Scotts Miracle-GRO a déclaré des dépenses de R&D de 76,1 millions de dollars, ce qui représente 2,9% du total des ventes nettes.

Exercice fiscal	Dépenses de R&D ($ m)	Pourcentage de ventes nettes
2023	76.1	2.9%
2022	84.3	3.2%

Coûts de fabrication et de production

Le coût total des ventes pour l'exercice 2023 était de 1,89 milliard de dollars, ce qui comprend les dépenses de fabrication directes.

• Installations de fabrication primaires situées à Marysville, Ohio
• Empreinte de fabrication totale d'environ 1,2 million de pieds carrés
• Les coûts de production comprennent les matières premières, la main-d'œuvre et les frais généraux

Marketing et publicité

Les dépenses de marketing pour l'exercice 2023 ont totalisé 233,4 millions de dollars.

Catégorie de dépenses de marketing	Montant ($ m)
Marketing numérique	62.1
Publicité traditionnelle	85.3
Salon du commerce et marketing d'événements	86.0

Distribution et logistique

Les dépenses de distribution pour l'exercice 2023 étaient de 412,6 millions de dollars.

• Exploite 12 centres de distribution à travers les États-Unis
• Les coûts de la logistique comprennent le transport, l'entreposage et la gestion des stocks
• Coût moyen du transport par unité: 3,42 $

Personnel et frais généraux administratifs

Le personnel total et les frais administratifs pour l'exercice 2023 étaient de 298,7 millions de dollars.

Catégorie de dépenses du personnel	Montant ($ m)
Salaires et salaires	212.4
Avantages sociaux	54.3
Frais généraux administratifs	32.0

The Scotts Miracle-Gro Company (SMG) - Modèle d'entreprise: Strots de revenus

Ventes de produits de la pelouse et des jardins

Au cours de l'exercice 2023, Scotts Miracle-GRO a déclaré des ventes nettes totales de 3,36 milliards de dollars. Le segment des consommateurs, qui comprend des produits de pelouse et de jardin, a généré 2,32 milliards de dollars de revenus.

Catégorie de produits	Revenus (2023)
Produits de soins de pelouse	1,05 milliard de dollars
Produits de soins du jardin	785 millions de dollars
Mélange et sol	480 millions de dollars

Fournitures de l'industrie hydroponique et de cannabis

Le segment Hawthorne, axé sur les fournitures hydroponiques et liés au cannabis, a généré 1,04 milliard de dollars de revenus pour l'exercice 2023.

• La culture du cannabis fournit des revenus: 612 millions de dollars
• Ventes d'équipements hydroponiques: 428 millions de dollars

Services basés sur l'abonnement

Bien que Scotts Miracle-GRO ne fonctionne pas principalement sur un modèle d'abonnement, ils ont introduit des plateformes numériques qui génèrent des revenus récurrents supplémentaires.

Service numérique	Revenus annuels estimés
Mon application de pelouse (fonctionnalités premium)	3,5 millions de dollars
Abonnements au jardinage numérique	2,1 millions de dollars

Ventes de détail en ligne et hors ligne

Répartition des canaux de vente pour l'exercice 2023:

• Magasins de rénovation domiciliaire: 1,8 milliard de dollars
• Marchands de masse: 620 millions de dollars
• Retail en ligne: 340 millions de dollars
• Centre de jardinage indépendant: 280 millions de dollars

Revenus d'expansion du marché international

Les ventes internationales ont contribué à environ 280 millions de dollars aux revenus totaux de la société en 2023.

Région	Contribution des revenus
Canada	120 millions de dollars
Europe	95 millions de dollars
Autres marchés internationaux	65 millions de dollars

The Scotts Miracle-Gro Company (SMG) - Canvas Business Model: Value Propositions

You're looking at the core reasons why customers choose The Scotts Miracle-Gro Company over alternatives in late 2025. It's about trust built over decades and solving real consumer pain points.

Trusted, market-leading quality in the $\mathbf{\$11}$ billion consumer DIY lawn and garden market

The Scotts Miracle-Gro Company is the leading marketer of branded consumer lawn and garden products in North America. You see their Scotts®, Miracle-Gro®, Ortho® and Tomcat® brands everywhere, and they are market-leading in their respective categories. For the fiscal year 2025, the U.S. Consumer segment, which drives the bulk of the business, generated net sales of $\mathbf{\$2.99}$ billion. Back in 2015, research showed the company controlled an estimated $\mathbf{60\%}$ of total U.S. sales, which speaks to the depth of that market leadership.

Simplified, all-in-one lawn care solutions for the mass-market consumer

The value here is cutting through the complexity. Research from years past indicated that a significant portion of potential customers found the sheer number of products confusing; for example, $\mathbf{40\%}$ of shoppers would leave a store without buying a pesticide due to confusion. Also, $\mathbf{60\%}$ of households participating in DIY lawn care activities did not regularly buy lawn fertilizer. The Scotts Miracle-Gro Company offers simplified, all-in-one solutions to address this hesitation, making lawn and garden care accessible.

Specialized hydroponic and indoor growing products via the Hawthorne segment

The Hawthorne segment serves the indoor and hydroponic gardening business. While this segment faced market softness, with net sales tumbling $\mathbf{38\%}$ year-over-year to $\mathbf{\$49.9}$ million in the fourth quarter of fiscal 2025, the value proposition remains specialized expertise. Management had expected the full year 2025 Hawthorne to contribute approximately $\mathbf{\$20}$ million of EBITDA. The company was moving to divest this business to a dedicated cannabis company by fiscal year end to allow both entities to focus on their core strengths.

Structural gross margin improvement, reaching $\mathbf{31.2\%}$ non-GAAP adjusted in FY 2025

This is about operational excellence translating directly to better financial health for The Scotts Miracle-Gro Company. They delivered substantial margin expansion through efficiencies like AI and automation. Here's a quick look at the profitability shift for the full fiscal year 2025:

Metric	FY 2025 Value	Change/Context
Non-GAAP Adjusted Gross Margin Rate	31.2%	Improved by $\mathbf{490}$ basis points over prior year
GAAP Gross Margin Rate	30.6%	Up from prior year
Non-GAAP Adjusted EBITDA	$\mathbf{\$581}$ million	Improved $\mathbf{\$71}$ million year-over-year
Free Cash Flow	$\mathbf{\$274}$ million	Exceeded expectations

The focus on structural improvement is clear, with fiscal 2026 guidance projecting a non-GAAP adjusted gross margin of at least $\mathbf{32\%}$.

Commitment to sustainability and recyclable packaging

The Scotts Miracle-Gro Company is embedding environmental stewardship into its product delivery. You see this commitment across several areas:

• Innovated with $\mathbf{100}$-percent recyclable packaging for its O.M. Scott & Sons brand.
• Reduced virgin plastic packaging by using refillable pouches under its Ortho brand.
• Uses around $\mathbf{3.4}$ million pounds of recycled bark in its soils each year.
• A prior goal was to triple the amount of post-consumer recycled (PCR) material in plastic packaging by 2025, building on an existing base of approximately $\mathbf{2,500}$ tons annually.

They are actively working to make their packaging part of the solution, not just the problem.

Finance: draft 13-week cash view by Friday.

The Scotts Miracle-Gro Company (SMG) - Canvas Business Model: Customer Relationships

You're looking at how The Scotts Miracle-Gro Company (SMG) manages its connections with different customer groups as of late 2025. It's a mix of high-volume retail transactions, deep community investment, and specialized B2B support, even as the company strategically pivots its portfolio.

Automated and transactional relationships via major retail partners

For the core U.S. Consumer business, relationships are heavily automated and transactional, flowing through massive national retailers. This reliance on a few key partners means that maintaining strong operational alignment is critical for moving product. The scale of this relationship is best seen in the sales concentration figures from the fiscal year ended September 30, 2025.

Retail Partner Metric (FY 2025)	Value
U.S. Consumer Net Sales (Total)	$2.99 billion
Net Sales to Top 2 Retailers (Home Depot & Lowe's)	52%
Accounts Receivable from Top 2 Retailers (as of 9/30/2025)	25%

Still, SMG is actively growing its direct-to-consumer touchpoints. E-commerce penetration, which was just 2% in 2019, hit 10% of overall point-of-sale (POS) in 2025. This channel saw significant unit velocity, with POS units growing by 51% and POS dollars increasing by 23% in fiscal 2025.

Community-building through grants and green space programs

The Scotts Miracle-Gro Foundation actively cultivates a relationship with communities through its purpose-driven initiatives, which are deeply tied to the company's GroMoreGood ethos. This is a relationship built on social impact rather than direct sales. The Foundation supports its mission through grants, endowments, and multi-year capital gifts.

Here are the key numbers for the flagship community grant program in 2025:

• Number of community programs awarded grants in 2025: 170
• Total states spanned by 2025 recipients: 44
• Projected youth to be connected with garden-based learning in 2025: More than 38,000
• Total grants supporting green spaces in the last year (FY2025, including other programs): More than 180

Digital engagement and content marketing (e.g., Gro Like Martha campaign)

The company uses digital channels to drive consumer engagement, simplify complex gardening decisions, and target specific demographics. This is where the transactional relationship starts to feel more personal through content. For instance, SMG is simplifying lawn care routines by promoting multiple seasonal feedings at a psychologically accessible price point of $100 for a full season, specifically targeting younger demographics through social media platforms.

Furthermore, brand-specific digital pushes are targeting high-value categories. The company is planning to launch over 10 new innovative products under the Ortho brand in fiscal 2026, supporting its push in the Ortho Control brand, which is a segment valued at approximately $5 billion.

Dedicated sales and support for the Hawthorne B2B grower base

The relationship with the Hawthorne B2B grower base, primarily serving the indoor and hydroponic growing industry, has been undergoing a significant, strategic realignment. This segment's performance metrics reflect a shift in focus toward profitability and a planned exit from the cannabis-adjacent market.

The financial reality of this customer base in fiscal 2025 shows a sharp contraction:

• Hawthorne full-year net sales decline in fiscal 2025: 44%
• Hawthorne net sales decline in Q2 2025: 51% (from $66 million to $33 million)

The company's customer management strategy here involves a planned separation, with the goal of finalizing the sale of Hawthorne Gardening by the end of the year. This move is intended to preserve a significant $600 million tax benefit while allowing the core consumer business to focus on its branded products. Finance: draft 13-week cash view by Friday.

The Scotts Miracle-Gro Company (SMG) - Canvas Business Model: Channels

The Scotts Miracle-Gro Company (SMG) relies on a multi-faceted distribution network to move its consumer and Hawthorne segment products to the end-user.

The primary route to market for the U.S. Consumer segment remains large format retail. The concentration risk here is notable, as The Home Depot and Lowe's together accounted for 52% of fiscal 2025 net sales. This channel is critical for volume movement, especially during the peak second and third fiscal quarters, which together account for more than 75% of annual North American consumer net sales.

Digital adoption is accelerating, with e-commerce platforms showing significant unit and dollar growth in fiscal 2025. E-commerce penetration reached 10% of overall Point of Sale (POS) dollars for the full fiscal year 2025. This growth was driven by a 23% increase in e-commerce POS dollars and a 51% increase in e-commerce POS units year-over-year.

The company utilizes a mix of direct sales forces, brokers, and distributors to reach various outlets, including independent garden centers and hardware stores, alongside e-commerce platforms and mass merchandisers.

For the Hawthorne segment, which focuses on indoor and hydroponic gardening, the channel strategy involves specialized retail partners. Following strategic realignments, Hawthorne shifted focus to marketing its Signature brands, utilizing partners like BFG Supply as a key distributor to hydroponic retail businesses through their national network.

Here's a look at the key channel metrics for fiscal 2025:

Channel Type	FY 2025 Sales/Penetration Data	Context/Growth Metric (FY 2025)
Big-box Retail (Top 2)	52% of fiscal 2025 net sales	Accounted for 25% of accounts receivable as of September 30, 2025
E-commerce Platforms	10% of overall POS dollars	POS dollars grew 23%; POS units grew 51%,
U.S. Consumer Segment Net Sales	$2.99 billion	POS units for U.S. Consumer increased 8.5%,
Total Company Net Sales	$3.41 billion	GAAP gross margin rate of 30.6%,

The distribution structure for the Hawthorne business includes:

• Specialty hydroponic retail outlets.
• Distribution partners like BFG Supply for Signature brands.
• Direct service to hydroponic retail customers.

The U.S. Consumer segment's sales are heavily weighted toward peak season:

• Second fiscal quarter net sales accounted for 41.6% of annual net sales.
• Third fiscal quarter net sales accounted for 34.8% of annual net sales.

The Scotts Miracle-Gro Company (SMG) - Canvas Business Model: Customer Segments

You're looking at the core customer groups The Scotts Miracle-Gro Company serves as of late 2025. The business clearly divides its focus across three primary reporting segments.

Mass-market DIY homeowners and renters (U.S. Consumer segment) represent the largest portion of the customer base, driving the majority of the company's revenue.

• U.S. Consumer segment net sales for fiscal year 2025 totaled $2,993.7 million.
• This segment experienced a net sales increase of 1% in fiscal year 2025.
• Point-of-sale (POS) units for this segment grew by 8.5% in fiscal 2025.
• E-commerce is a growing channel within this segment, showing a 51% increase in POS units and a 23% increase in POS dollars in fiscal 2025.
• E-commerce penetration reached 10% of overall POS in fiscal 2025.

The Professional and commercial indoor/hydroponic growers (Hawthorne segment) cater to a specialized market, though this segment faced significant headwinds in the reported period.

Segment	FY 2025 Net Sales (in millions)	Year-over-Year % Change (FY 2025)
U.S. Consumer	$2,993.7	1% increase
Hawthorne	$165.8	44% decline
Total Company Net Sales (FY 2025)	$3,413.1	3.93% decrease

International consumers (primarily Canada, via the Other segment) form the third reporting division, though specific revenue figures for this segment alone aren't as prominently detailed as the other two major segments.

• The Other segment primarily consists of the consumer lawn and garden business in Canada.

The focus on younger demographics targeted by new simplified lawn care routines is a strategic effort to expand the consumer base beyond traditional segments.

• The company is shifting focus to outward efforts that will enable attracting new and younger consumers.

The total company reported net sales of $3,413.1 million for the fiscal year ended September 30, 2025. That's a lot of product moving through these distinct customer channels.

The Scotts Miracle-Gro Company (SMG) - Canvas Business Model: Cost Structure

You're looking at the core expenses The Scotts Miracle-Gro Company incurred to run its business through fiscal year 2025. Understanding this structure shows where the money actually goes before we even look at profit.

Cost of Goods Sold (COGS) is the single largest component of the cost base, reflecting the direct costs tied to producing and acquiring the products sold. For fiscal year 2025, the Cost of Sales was reported at $\mathbf{\$2.3486}$ billion, which represents $\mathbf{68.8\%}$ of the total net sales for the year. This is a significant improvement in margin efficiency compared to the $\mathbf{73.7\%}$ cost of sales recorded in fiscal 2024. The company's total net sales for FY 2025 were $\mathbf{\$3.41}$ billion. This cost base is heavily influenced by the seasonal and bulky nature of the product line, which impacts inventory holding and movement.

Here's a quick look at how the major cost components stack up relative to the full year's financial performance:

Cost Metric	FY 2025 Amount	Context/Driver
Cost of Goods Sold (COGS)	$\mathbf{\$2.3486}$ billion	Direct cost of products sold; margin rate improved to $\mathbf{30.6\%}$ GAAP gross margin.
Advertising & Marketing Investment	Approaching $\mathbf{\$1,000,000,000}$ annually	Strategic investment to support brand share gains and consumer takeaway.
Interest Expense	$\mathbf{\$128.8}$ million	Reflects a $\mathbf{\$30}$ million year-over-year decline due to debt reduction efforts.
AI/Automation Savings Generated	$\mathbf{\$75}$ million	Cost reduction achieved through operational efficiencies in FY 2025.

The need for significant investment in advertising and marketing is non-negotiable for The Scotts Miracle-Gro Company, given its reliance on strong consumer pull through retail channels. These activation investments approach $\mathbf{\$1,000,000,000}$ annually. This spending is directly linked to driving point-of-sale (POS) growth, which was up $\mathbf{8.5\%}$ in units for FY 2025. Honestly, you can't build that kind of brand equity without spending big on activation.

Distribution and logistics costs present a persistent challenge because the product line is both seasonal and bulky. This means managing high fixed costs for warehousing and transportation that must be absorbed over a shorter selling window. The company has been actively working to mitigate these costs, evidenced by prior actions like warehouse closures which helped lower distribution costs in the first quarter of 2025.

The push for operational efficiency is a clear cost-management strategy, particularly in the supply chain. The Scotts Miracle-Gro Company is actively implementing technology to offset structural costs. Specifically, operating expenses related to AI and automation initiatives drove $\mathbf{\$75}$ million in cost savings during fiscal 2025. These savings are then strategically reinvested into brands and innovation, rather than simply dropping to the bottom line.

Finally, the balance sheet management directly impacts the income statement through financing costs. Interest expense on debt for fiscal 2025 was $\mathbf{\$128.8}$ million. This figure represents a $\mathbf{\$30}$ million decrease compared to the prior year, a direct result of deleveraging activities. The company is focused on maintaining this trajectory:

• Lower debt balance compared to the prior year.
• Projected interest expense to be $\mathbf{\$30}$ million lower than the prior year.
• Net leverage improved to $\mathbf{4.10x}$ at year-end FY 2025.

The Scotts Miracle-Gro Company (SMG) - Canvas Business Model: Revenue Streams

You're looking at the actual money The Scotts Miracle-Gro Company brought in during fiscal year 2025, which ended September 30, 2025. Honestly, this is where you see the core health of the business, and for SMG, it's still heavily weighted toward the homeowner.

The biggest piece, as always, comes from the core business:

• U.S. Consumer product sales, totaling $\mathbf{\$2.99}$ billion in FY 2025. This number aligns with guidance, showing the strength of the core lawn and garden brands like Scotts and Miracle-Gro.

Now, let's look at the other segments. The Hawthorne segment, which handles the indoor and hydroponic growing side, has been strategically managed for profitability over pure top-line growth. For FY 2025, this focus paid off in profit, even as sales shifted:

• Sales from the Hawthorne segment achieved $\mathbf{\$2.8}$ million in Segment Profit.
• Hawthorne net sales for the full fiscal year 2025 were $\mathbf{\$165.8}$ million.

The International and Other segment covers things like the lawn and garden business in Canada, plus any other residual operations. When you look at the total reported net sales for the entire company in FY 2025, which was $\mathbf{\$3,413.1}$ million, you can map out the rest of the revenue picture. Here's the quick math: Total Sales ($\mathbf{\$3,413.1}$M) minus U.S. Consumer ($\mathbf{\$2,993.7}$M) minus Hawthorne ($\mathbf{\$165.8}$M) leaves the remainder for Other.

This means the International and Other segment sales were approximately $\mathbf{\$253.6}$ million for the year, rounding out the total revenue base.

Finally, don't forget the less visible, but still important, revenue from intellectual property and partnerships:

• Licensing revenue and commissions, which includes benefits from the Roundup brand, contributed to margin improvement, particularly in the fourth quarter.

To give you a clear snapshot of the FY 2025 revenue composition, check out this breakdown:

Revenue Stream	FY 2025 Amount (Millions USD)	Notes
U.S. Consumer Net Sales	$\mathbf{\$2,993.7}$	Reported as $\mathbf{\$2.99}$ billion
Hawthorne Segment Net Sales	$\mathbf{\$165.8}$	Segment Profit was $\mathbf{\$2.8}$ million
International and Other Segment Sales	$\mathbf{\$253.6}$ (Derived)	Calculated from Total Sales and other segments
Total Net Sales	$\mathbf{\$3,413.1}$	Total reported annual revenue

The company is definitely leaning on the consumer side for the bulk of its top line, which is expected given the nature of its primary brands. Finance: draft 13-week cash view by Friday.