Hydrofarm Holdings Group, Inc. (“Hydrofarm”) (Nasdaq: HYFM), a leading independent distributor and manufacturer of hydroponics equipment and supplies for controlled environment agriculture, today reaffirmed its net sales and adjusted EBITDA outlook for the full fiscal year 2021. As previously stated, the Company reaffirmed the following:
- Net sales of approximately $470.0 million to $490.0 million, representing growth of 37% to 43% compared to fiscal 2020.
- Adjusted EBITDA of $47.0 million to $53.0 million.
- Full-year organic growth of approximately 18% to 23% and M&A growth of approximately 19% to 20%.
The Company’s 2021 outlook includes the following assumptions:
- Partial period contributions from the following acquisitions:
- 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 Company’s full year 2021 outlook implies fourth quarter 2021 net sales growth comprised of M&A growth, partially offset by a decline in organic sales. The Company estimates that the organic sales decline experienced in the fourth quarter was in the low-to-mid teens, driven by a sales mix that is primarily consumable products as opposed to durable products.
The Company will provide a detailed financial outlook for 2022 as part of its fourth quarter earnings report. However, at this time, management continues to expect 8% to 10% organic top line growth for the full calendar year of 2022, which will likely be weighted toward the back half of 2022 as the industry laps strong comps in the first half of this year and several states that have recently enacted pro-cannabis legislation build momentum through 2022. In addition, management expects to benefit from the full year of ownership in 2022 of the five businesses acquired during 2021.
This update remains subject to the completion of normal year-end accounting procedures and adjustments and are subject to change. The Company expects to release final financial and operating results for its fiscal fourth quarter and fiscal year ended December 31, 2021 during March of 2022.
ICR Conference Participation
Hydrofarm management will present at the 2022 Virtual ICR Conference on Tuesday, January 11, 2022. Hydrofarm’s presentation will begin at 2:00 PM ET and will be webcast live and archived on the Hydrofarm website. To access the webcast, please visit www.hydrofarm.com under the “Investors” section.