Hydroponic company Hydrofarm Holdings Group, Inc. HYFM reaffirmed its net sales and adjusted its EBITDA outlook for the full fiscal year 2021 on Friday, despite the decline in organic sales in the fourth quarter.
Based in Fairless Hills, Pennsylvania, the company expects to generate between $470 million and $490 million in net sales in fiscal 2021, representing a year-over-year growth of 37% to 43%.
Moreover, the company anticipates achieving a positive adjusted EBITDA of $47 million to $53 million.
In addition, the company projects full-year organic growth of approximately 18% to 23% and M&A growth of roughly 19% to 20%.
Hydrofarm further estimated that the fourth quarter organic sales decline (in the low-to-mid teens) was driven by a sales mix of primarily consumable products as opposed to durable products.
And while a detailed financial outlook for 2022 will be available as part of the company's fourth-quarter earnings report, management continues to expect 8% to 10% organic top-line growth for the full calendar year of 2022.
2021 Outlook Highlights
- Heavy 16 – net sales and EBITDA contribution for May through December 2021
- House & Garden – net sales and EBITDA contribution for June through December 2021
- Aurora Innovations – net sales and EBITDA contribution for July through December 2021
- Greenstar – net sales and EBITDA contributions for August through December 2021
- IGE – net sales and EBITDA contributions for November through December 2021
The management also anticipates benefiting from the full year of ownership in 2022 of the five businesses acquired during 2021.
Related News
Hydrofarm Holdings Q3 Net Sales Improve 28% YoY To $123.8M, Reaffirms Guidance
Hydrofarm To Acquire House & Garden For $125M As Part Of Its Expanding Acquisition Strategy
Hydrofarm Holdings Continues Buying Spree With $83M Purchase Of Greenstar Plant Products
HYFM Price Action
Hydrofarm's shares traded 3.76% higher at $23.47 per share at the time of writing on Friday.
Photo: Courtesy of Markus Winkler on Unsplash
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