Scotts Miracle-Gro sees Q2 net leverage ratio 7 times adjusted EBITDA

Scotts Miracle-Gro expects to achieve a Q2 net leverage ratio around 7 times adjusted EBITDA. This will be below the company’s Q1 net leverage ratio and its Q2 maximum of 7.75 times. “We continue to make real progress in improving the financial and operating performance of ScottsMiracle-Gro,” said CEO Jim Hagedorn. “Net leverage not only will be comfortably below the Q2 maximum and better than Q1, but it also will be a less critical metric going forward as debt reduction and covenant compliance are manageable. In Q2, we delivered near-record retail shipments coupled with year-to-date POS units trending to mid-teens percentage growth versus last year. Our teams executed flawlessly, and our retailer partnerships are stronger than ever. Free cash flow in the first half of the year outperformed expectations, providing solid support for achieving the balance of our $1B free cash flow target in the fiscal ’23 and ’24 period.”