MGP Ingredients Inc

MGPI

Equity

ISIN US55303J1060 / Valor 14670184

NASDAQ (2024-11-22)

USD 45.50-2.67%

MGP Ingredients Inc
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About company

MGP Ingredients Inc is a prominent company in the production of premium distilled spirits, branded spirits, and food ingredient solutions. The company operates in various locations across the United States, including Kansas, Missouri, Indiana, Kentucky, and Ohio, as well as internationally in Mexico and Northern Ireland. With a focus on quality and innovation, MGP Ingredients Inc has established itself as a key player in the industry, providing a wide range of products to meet the needs of its customers.

Summarized from source with an LLMView SourceSector: Consumer Non-Cyclicals

Revenue Performance

MGP Ingredients Inc. reported a 9% decrease in sales to $190.8 million for the second quarter of 2024, primarily due to the closure of the Atchison distillery. However, excluding the impact of the distillery closure, consolidated sales actually increased by 7% during the quarter, driven by higher Distilling Solutions and Branded Spirits segment sales.

Net Income

For the second quarter of 2024, MGP Ingredients Inc. reported net income of $32.0 million, which was largely flat compared to the same period in 2023. However, adjusted net income saw a significant increase of 15%, reaching $38.0 million. The net income margin also improved by 150 basis points to 16.8%, while the adjusted net income margin increased by 410 basis points to 19.9%.

Adjusted EBITDA

MGP Ingredients Inc. achieved an adjusted EBITDA of $57.5 million for the second quarter of 2024, marking a 7% increase from the previous year. The adjusted EBITDA margin also saw a substantial improvement, increasing by 450 basis points to 30.2%, which is the highest quarterly adjusted EBITDA margin the company has recorded.

Branded Spirits Segment

The Branded Spirits segment of MGP Ingredients Inc. experienced an 11% increase in sales, reaching $64.0 million in the second quarter of 2024. This growth was primarily driven by the ongoing momentum in the premium plus portfolio, with sales of premium plus price tier spirits brands growing by 29% during the quarter. The segment's gross profit also increased by 29% to a record-high $33.6 million, or 52.5% of segment sales.

2024 Financial Outlook

MGP Ingredients Inc. has reiterated its full-year 2024 guidance, projecting sales in the range of $742 million to $756 million. The company also expects adjusted EBITDA to be between $218 million and $222 million, and adjusted basic earnings per common share to be in the range of $6.12 to $6.23. Capital expenditures for the full year are anticipated to be approximately $85 million, including the construction of additional warehouses to support future growth.

Summarized from source with an LLMView Source

Key figures

-50.9%1Y

-39.0%3Y

-0.57%5Y

Performance

49.0%1Y

40.0%3Y

45.3%5Y

Volatility