A Scotts Miracle-Gro Company (SMG): Modelo de Negócios Canvas [Jan-2025 Atualizado]

No mundo dinâmico dos cuidados com o gramado e do jardim, a Scotts Miracle-Gro Company (SMG) se destaca como uma potência botânica, transformando como nutrimos espaços verdes de jardins de quintal a paisagens profissionais. Com um modelo de negócios inovador que abrange jardinagem tradicional, soluções hidropônicas de ponta e suprimentos emergentes da indústria de cannabis, a SMG cultivou uma abordagem única que combina experiência científica, parcerias estratégicas e desenvolvimento de produtos centrados no consumidor. Mergulhe na intrincada tela do modelo de negócios que revela como esse titã agrícola cresce além dos limites convencionais, criando valor para jardineiros, paisagistas profissionais e especialistas do setor.

A Scotts Miracle -Gro Company (SMG) - Modelo de negócios: Parcerias -chave

Aliança estratégica com Hawthorne Gardening Company

A Scotts Miracle-Gro possui 100% da Hawthorne Gardening Company, uma subsidiária focada nos suprimentos da indústria de cannabis. No ano fiscal de 2023, Hawthorne gerou US $ 348,1 milhões em vendas líquidas, representando uma parceria estratégica significativa no mercado de cultivo de cannabis.

Parcerias de varejo

As principais parcerias de varejo incluem:

Varejista	Contribuição do canal de vendas
Home Depot	Aproximadamente 25-30% das vendas anuais de produtos de gramado e jardim
Lowe's	Aproximadamente 20-25% das vendas anuais de produtos de gramado e jardim
Walmart	Aproximadamente 15-20% das vendas anuais de produtos de gramado e jardim

Colaborações de pesquisa agrícola

Scotts Miracle-Gro mantém parcerias de pesquisa com:

• Departamento de Ciência Planta da Universidade de Cornell
• Centro de Pesquisa Agrícola da Universidade da Califórnia Davis
• Serviço de Pesquisa Agrícola do USDA

Parcerias de distribuição internacional

Ventuos de joint ventures internacionais e acordos de distribuição incluem:

Região	Parceiro	Foco em parceria
Europa	GmbH substral	Distribuição de produtos para jardim e gramado
Ásia-Pacífico	Sumitomo Corporation	Expansão do mercado de produtos agrícolas e de jardinagem
América latina	Grupo Nutec	Distribuição de mídia em crescimento profissional

Parcerias de tecnologia e inovação

As principais colaborações de tecnologia incluem:

• Aerogrow International para sistemas de cultivo hidropônico
• Bonnie Plants for Sustainable Gardening Technology
• Provedores de tecnologia da Agricultura Ambiental controlada (CEA)

A Scotts Miracle -Gro Company (SMG) - Modelo de negócios: Atividades -chave

Pesquisa e desenvolvimento de produtos em soluções de gramado, jardim e hidropônico

Investimento de P&D no ano fiscal de 2023: US $ 65,3 milhões

Áreas de foco em P&D	Investimento anual
Soluções de atendimento ao gramado	US $ 24,7 milhões
Tecnologias hidropônicas	US $ 18,5 milhões
Inovações de suprimentos de jardim	US $ 22,1 milhões

Fabricação de fertilizantes, pesticidas e material de jardinagem

Total de instalações de fabricação: 22 na América do Norte

• Capacidade anual de produção: 1,2 milhão de toneladas de fertilizantes
• Locais de fabricação: Estados Unidos, Canadá
• Taxa de eficiência de produção: 92,4%

Marketing e gerenciamento de marca

Despesas de marketing em 2023: US $ 187,4 milhões

Canal de marketing	Porcentagem de alocação
Marketing digital	42%
Mídia tradicional	33%
Promoções de varejo	25%

Gerenciamento de distribuição e cadeia de suprimentos

Rede de logística: 38 centros de distribuição

• Volume anual de envio: 4,6 milhões de toneladas métricas
• Tempo médio de entrega: 2,3 dias
• Parceiros da cadeia de suprimentos: mais de 1.200 varejistas

Operações de vendas de varejo e comércio eletrônico

Total de canais de varejo: mais de 55.000 pontos de venda

Canal de vendas	Contribuição da receita
Varejo físico	68%
Comércio eletrônico	32%

A Scotts Miracle -Gro Company (SMG) - Modelo de negócios: Recursos -chave

Forte reputação da marca no gramado e cuidado no jardim

Scotts Miracle-Gro registrou um valor de marca de US $ 3,42 bilhões em 2023. Participação no mercado no segmento de gramado e cuidados de jardim: 38,7%.

Métrica da marca	2023 valor
Valor da marca	US $ 3,42 bilhões
Quota de mercado	38.7%

Portfólio de produtos extensos

Total de linhas de produtos: 127 entre segmentos de consumidores e profissionais.

• Produtos de atendimento ao gramado do consumidor: 54 linhas
• Produtos agrícolas profissionais: 36 linhas
• Soluções hidropônicas e de crescimento interno: 37 linhas

Instalações avançadas de P&D

Investimento de P&D em 2023: US $ 126,5 milhões. Centros de pesquisa: 3 locais primários.

Métrica de P&D	2023 dados
Investimento em P&D	US $ 126,5 milhões
Centros de pesquisa	3 locais

Força de trabalho qualificada em ciências agrícolas e hortícolas

Total de funcionários: 5.890. Titulares de graduação avançada: 22% da força de trabalho.

Métrica da força de trabalho	2023 dados
Total de funcionários	5,890
Titulares de graduação avançados	22%

Rede de distribuição robusta

Canais de distribuição: 12.500 locais de varejo. Instalações de armazém: 17 em toda a América do Norte.

Métrica de distribuição	2023 dados
Locais de varejo	12,500
Instalações de armazém	17

A Scotts Miracle -Gro Company (SMG) - Modelo de Negócios: Proposições de Valor

Produtos de gramado e jardim de alta qualidade

Scotts Miracle-Gro gerou US $ 4,73 bilhões em vendas líquidas para o ano fiscal de 2023. As métricas de qualidade do produto incluem:

Categoria de produto	Quota de mercado	Receita anual
Produtos de atendimento ao gramado	35.6%	US $ 1,68 bilhão
Produtos de cuidados com jardim	28.9%	US $ 1,37 bilhão

Soluções inovadoras para jardineiros domésticos e paisagistas profissionais

O investimento em P&D em 2023 foi de US $ 96,4 milhões, com foco no desenvolvimento inovador de produtos.

• Desenvolvido 17 novas formulações de produtos proprietários
• Lançado 8 soluções de jardinagem aprimoradas de tecnologia
• Registrado 22 novas patentes em tecnologias de horticultura

Soluções de jardinagem ambientalmente amigáveis ​​e sustentáveis

As iniciativas de sustentabilidade incluem:

Métrica de sustentabilidade	2023 desempenho
Materiais de embalagem reciclados	42.7%
Linhas de produtos para conservação de água	6 novos intervalos de produtos

Gama abrangente de produtos para diversas necessidades de jardinagem

Breakdown do portfólio de produtos:

• Gramado do consumidor & Segmento de jardim: receita de US $ 3,92 bilhões
• Segmento Hawthorne (cultivo profissional): receita de US $ 810 milhões
• Número de produtos distintos do produto: 387

Aconselhamento especializado e suporte ao cliente

Métricas de engajamento do cliente:

Canal de suporte	Interações anuais
Plataformas de suporte on -line	2,3 milhões
Centros de atendimento ao cliente	1,7 milhão

A Scotts Miracle -Gro Company (SMG) - Modelo de Negócios: Relacionamentos do Cliente

Suporte ao cliente através de vários canais

Scotts Miracle-Gro fornece suporte ao cliente através dos seguintes canais:

Canal de suporte	Método de contato
Suporte telefônico	1-888-270-3714
Suporte por e -mail	consumercare@scotts.com
Chat online	Disponível no site oficial

Recursos online e guias de jardinagem

Os recursos digitais incluem:

• Site de jardinagem abrangente com mais de 500 artigos instrucionais
• Tutoriais em vídeo
• Dicas de jardinagem sazonal
• Guias de uso do produto

Programas de fidelidade e ofertas promocionais

Programa	Detalhes
Miracle-Gro Garden Club	Associação gratuita com desconto de 10% na primeira compra
Promoções sazonais	Média de 15 a 20% de desconto durante as temporadas de primavera e verão

Engajamento da mídia social

Plataformas de mídia social com contagem de seguidores:

Plataforma	Seguidores
Facebook	247.000 seguidores
Instagram	135.000 seguidores
YouTube	42.000 assinantes

Oficinas educacionais e demonstrações de produtos

• Atendimento anual do workshop: aproximadamente 75.000 participantes
• Online on -line: 12 sessões por ano
• Participação média do workshop: 6.250 por mês

A Scotts Miracle -Gro Company (SMG) - Modelo de Negócios: Canais

Lojas de varejo diretas

Em 2024, o Scotts Miracle-Gro opera 4 locais de varejo direto nos Estados Unidos. Essas lojas geram aproximadamente US $ 12,5 milhões em receita anual.

Tipo de localização	Número de lojas	Receita anual
Lojas de varejo diretas	4	US $ 12,5 milhões

Plataformas online de comércio eletrônico

Os canais de vendas on -line da empresa incluem:

• Site direto scotts.com
• Amazon.com Marketplace
• Walmart.com Plataforma online

Plataforma de comércio eletrônico	Volume de vendas (2023)
Scotts.com	US $ 45,3 milhões
Amazon.com	US $ 37,6 milhões
Walmart.com	US $ 28,9 milhões

Principais varejistas de melhoramento da casa

Scotts Miracle-Gro mantém parcerias estratégicas com:

• O depósito da Home
• Lowe's
• Menards

Varejista	Volume anual de vendas
O depósito da Home	US $ 215,7 milhões
Lowe's	US $ 187,3 milhões
Menards	US $ 76,5 milhões

Centros de jardinagem e lojas especializadas

A empresa atende aproximadamente 3.200 centros de jardins independentes em todo o país.

Tipo de loja	Número de lojas	Vendas anuais
Centros de jardim independentes	3,200	US $ 89,6 milhões

Distribuidores por atacado

Scotts Miracle-Gro trabalha com 47 parceiros de distribuição por atacado em toda a América do Norte.

Canal de distribuição	Número de distribuidores	Receita total de distribuição
Distribuidores por atacado	47	US $ 156,2 milhões

A Scotts Miracle -Gro Company (SMG) - Modelo de negócios: segmentos de clientes

Jardineiros domésticos

A partir de 2023, Scotts Miracle-Gro atende a aproximadamente 70 milhões de famílias dos EUA envolvidos em atividades de jardinagem. O segmento de jardineiro doméstico representa US $ 52,3 bilhões no mercado de gramado e jardim do consumidor.

Segmento demográfico	Tamanho de mercado	Gastos médios anuais
Millennials (25-40 anos)	22,4 milhões de famílias	US $ 487 por família
Gen X (41-56 anos)	19,6 milhões de famílias	US $ 612 por família

Paisagistas profissionais

O segmento de paisagismo profissional gera US $ 18,2 bilhões em receita anual para Scotts Miracle-Gro.

• Total de paisagistas profissionais nos EUA: 605.000
• Compra média anual do produto: US $ 24.500 por empresa de paisagismo
• Penetração de mercado: 68% dos paisagistas profissionais usam produtos Scotts

Negócios agrícolas

O segmento agrícola da Scotts Miracle-Gro gera US $ 327 milhões em receita anual.

Setor agrícola	Alcance do mercado	Utilização do produto
Operações agrícolas pequenas	42% de cobertura do mercado	US $ 87.600 gastos anuais de produto
Grandes fazendas comerciais	29% de cobertura de mercado	US $ 246.000 gastos anuais de produto

Cultivadores da indústria de cannabis

Por meio da Hawthorne Gardening Company, Scotts Miracle-Gro atende cultivadores de cannabis com US $ 473 milhões em receita anual.

• Total de cultivadores de cannabis licenciados: 37.000
• Compra média anual do produto: US $ 37.800 por instalação de cultivo
• Participação de mercado em suprimentos de cultivo de maconha: 42%

Gerentes de propriedades residenciais e comerciais

O segmento de gerenciamento de propriedades gera US $ 214 milhões em receita anual para Scotts Miracle-Gro.

Tipo de propriedade	Mercado total	Gastos médios anuais
Gerenciamento de propriedades residenciais	298.000 empresas	US $ 1.200 por propriedade
Gerenciamento de propriedades comerciais	87.500 empresas	US $ 4.600 por propriedade

A Scotts Miracle -Gro Company (SMG) - Modelo de negócios: estrutura de custos

Despesas de pesquisa e desenvolvimento

No ano fiscal de 2023, Scotts Miracle-Gro registrou despesas de P&D de US $ 76,1 milhões, representando 2,9% do total de vendas líquidas.

Ano fiscal	Despesas de P&D ($ M)	Porcentagem de vendas líquidas
2023	76.1	2.9%
2022	84.3	3.2%

Custos de fabricação e produção

O custo total das vendas para o ano fiscal de 2023 foi de US $ 1,89 bilhão, o que inclui despesas diretas de fabricação.

• Instalações de fabricação primárias localizadas em Marysville, Ohio
• Pegada total de fabricação de aproximadamente 1,2 milhão de pés quadrados
• Os custos de produção incluem matérias -primas, mão -de -obra e sobrecarga

Marketing e publicidade

As despesas de marketing para o ano fiscal de 2023 totalizaram US $ 233,4 milhões.

Categoria de despesa de marketing	Valor ($ m)
Marketing digital	62.1
Publicidade tradicional	85.3
Feira de feira e marketing de eventos	86.0

Distribuição e logística

As despesas de distribuição para o ano fiscal de 2023 foram de US $ 412,6 milhões.

• Opera 12 centros de distribuição nos Estados Unidos
• Os custos de logística incluem transporte, armazenamento e gerenciamento de inventário
• Custo médio de transporte por unidade: US $ 3,42

Pessoal e sobrecarga administrativa

O pessoal total e as despesas administrativas do ano fiscal de 2023 foram de US $ 298,7 milhões.

Categoria de despesa de pessoal	Valor ($ m)
Salários e salários	212.4
Benefícios dos funcionários	54.3
Sobrecarga administrativa	32.0

A Scotts Miracle -Gro Company (SMG) - Modelo de negócios: fluxos de receita

Vendas de produtos para gramado e cuidados de jardim

No ano fiscal de 2023, Scotts Miracle-Gro registrou vendas líquidas totais de US $ 3,36 bilhões. O segmento de consumidores, que inclui produtos de gramado e cuidados de jardim, gerou US $ 2,32 bilhões em receita.

Categoria de produto	Receita (2023)
Produtos de atendimento ao gramado	US $ 1,05 bilhão
Produtos de cuidados com jardim	US $ 785 milhões
Mistura de envasamento e solo	US $ 480 milhões

Suprimentos da indústria hidropônica e de cannabis

O segmento de Hawthorne, focado em suprimentos hidropônicos e relacionados à cannabis, gerou US $ 1,04 bilhão em receita para o ano fiscal de 2023.

• Receita de fornecimento de cultivo de cannabis: US $ 612 milhões
• Vendas de equipamentos hidropônicos: US $ 428 milhões

Serviços baseados em assinatura

Embora Scotts Miracle-Gro não opere principalmente em um modelo de assinatura, eles introduziram plataformas digitais que geram receita recorrente suplementar.

Serviço digital	Receita anual estimada
Meu aplicativo para gramado (recursos premium)	US $ 3,5 milhões
Assinaturas de jardinagem digital	US $ 2,1 milhões

Vendas de varejo online e offline

Canais de vendas quebrar para o ano fiscal de 2023:

• Lojas de melhoria da casa: US $ 1,8 bilhão
• Comerciantes em massa: US $ 620 milhões
• Varejo online: US $ 340 milhões
• Centros de jardim independentes: US $ 280 milhões

Receitas de expansão do mercado internacional

As vendas internacionais contribuíram com aproximadamente US $ 280 milhões para a receita total da empresa em 2023.

Região	Contribuição da receita
Canadá	US $ 120 milhões
Europa	US $ 95 milhões
Outros mercados internacionais	US $ 65 milhões

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.