MGP Ingredients Inc

Latest Results (12.10.2025):

MGP Ingredients Inc. reported its third quarter results for 2024, showing a mixed financial performance. While consolidated sales decreased by 24% compared to the same period last year, net income saw a significant increase. The company remains optimistic about its long-term strategy despite current market challenges.

Revenue Decline

Consolidated sales for the third quarter of 2024 dropped by 24% to $161.5 million. Excluding the impact of the Atchison distillery, sales decreased by 14%, reflecting lower performance across all three operating segments.

Boost in Net Income

Net income surged by 82% to $23.9 million, with the net income margin expanding by 860 basis points to reach 14.8%. This improvement underscores the company's effective cost management despite reduced sales volumes.

EPS Growth

Basic earnings per common share increased to $1.07 from $0.59 per share in the third quarter of 2023. However, adjusted basic EPS saw a slight decrease of 5%, falling to $1.29 per share.

Gross Margin Enhancement

Consolidated gross profit declined by 10% to $65.8 million, but the gross margin improved by 610 basis points to 40.8%. Excluding the Atchison distillery, the adjusted gross margin rose by 30 basis points, largely driven by higher margins in the Branded Spirits segment.

Operational Efficiency

Adjusted EBITDA decreased by 9% to $45.7 million, while the adjusted EBITDA margin increased by 460 basis points to 28.3%. Capital expenditures for the year to date stood at $44 million, and the net debt leverage ratio was approximately 1.3x as of September 30, 2024.

Segment Performance

The Distilling Solutions segment experienced a 36% decrease in sales to $71.9 million, mainly due to a 22% decline in brown goods sales. In contrast, the Branded Spirits segment saw a 6% decrease in sales to $62.6 million, with premium sales growing by 1%. The Ingredient Solutions segment faced an 18% decline in sales to $26.9 million, impacted by a stronger U.S. dollar and increased competition.

Financial Outlook

MGP Ingredients reaffirmed its full-year 2024 guidance, projecting consolidated sales between $695 million and $705 million, adjusted EBITDA of $196 million to $200 million, and adjusted basic EPS in the range of $5.55 to $5.65. The company anticipates continued investments in its brands portfolio to drive organic growth despite near-term challenges.