For the third quarter of this fiscal, Scotts Miracle-Gro Co has posted a 16 per cent jump in net profit. This is higher than the analyst expectations and has been possible because of rising consumer demand in lawn-and-garden segment. The profit margins too have improved during this time.
And because of such results, its board has authorized the company to go for a share buyback program. The total worth of this is going to be $500 million. Also the quarterly dividend of the company has now doubled to become 25 cents per share.
Presently, the market capitalization of Scott's is $3 billion and with the current dividend it needs to pay only $34 million for the whole year.
Scotts has benefited because of the resistance of the whole sector to the economic slowdown. The marketing and advertising initiatives taken by the firm has also benefited it.
It said that the sales on Tuesday was alone up by 5 per cent.
For the quarter ending July3, the profit of the company was $175.9 million or $2.59 per share. This is higher than $147.8 million or $2.24 per share.