IDEA #2->
MGPI MGP Ingredients, Inc.
$113.02-1.17(-1.02%)4:00 PM 08/02/23
NASDAQ |$USD |Pre-Market:$116.00+2.98(+2.64%)7:39 AM
Very nice Earn report!
MGP Ingredients
Consolidated sales increased 7% to a quarterly record of $209.0 million;
Net income and adjusted EBITDA increased 26% and 28%, respectively
ATCHISON, Kan., Aug. 03, 2023 (GLOBE NEWSWIRE) --
MGP Ingredients, Inc. (Nasdaq: MGPI),a leading provider of distilled spirits, branded spirits, and food ingredient solutions, today reported results for the second quarter ended June 30, 2023.
2023second quarterconsolidated results compared to2022second quarter
- Sales increased 7% to $209.0 million.
- Gross profit increased 29% to $76.3 million, representing 36.5% of sales.
- Operating income increased 25% to $44.1 million. Adjusted operating income increased 29% to $45.6 million.
- Net income increased 26% to $32.0 million. Adjusted net income increased 31% to $33.1 million.
- Adjusted EBITDA increased 28% to $51.2 million.
- Basic and diluted earnings per common share (“EPS”) increased to $1.44 per share from $1.15 per share. Adjusted basic and diluted EPS increased to $1.49 per share from $1.15 per share.
“We are very pleased with our continued momentum during the second quarter. Our strong performance underpins our long-term strategy and the value we bring to our global customer base,” said David Colo, president and CEO of MGP Ingredients. “Sales of brown goods grew 30% from the prior year period, driven by strong demand for our new distillate and aged whiskey. Within our Branded Spirits segment, we completed the acquisition of Penelope Bourbon in June, further strengthening our portfolio of premium plus brands, which grew 29% in sales from the prior year period. We expect our continued investment in premium plus spirits brands to position us well for incremental growth and margin expansion opportunities in the future. Our Ingredient Solutions business generated record sales during the quarter, which continued to benefit from the shift in consumer behavior toward plant-based diets. We believe our strong performance underscores the strength of our business model, and we remain committed to executing against our strategy to create further shareholder value.”
Distilling Solutions
In the second quarter 2023, sales for the Distilling Solutions segment increased 9% to $116.9 million year- over-year, reflecting a 22% increase in sales of premium beverage alcohol, due to higher brown goods sales. Gross profit increased to $38.7 million or 33.1% of segment sales, compared to $29.8 million or 27.8% of segment sales in the second quarter 2022.
Branded Spirits
For the second quarter 2023, sales for the Branded Spirits segment decreased 2% to $57.6 million, while sales of premium plus brands increased 29% to $23.8 million. Gross profit increased to $26.0 million, or 45.1% of segment sales, compared to $21.0 million, or 35.8% of segment sales in the second quarter 2022.
Ingredient Solutions
In the second quarter 2023, sales in the Ingredient Solutions segment increased 18% to $34.5 million year- over-year. Gross profit increased to $11.6 million, or 33.6% of segment sales, compared to $8.5 million, or 29.0% of segment sales in the second quarter 2022.
Other
Advertising and promotion expenses for the second quarter 2023 increased $2.6 million, or 42%, to $8.6 million as compared to the second quarter 2022.
Corporate selling, general and administrative ("SG&A") expenses for the second quarter 2023 increased $5.7 million, or 32%, to $23.5 million as compared to the second quarter 2022.
The corporate effective tax rate for the second quarter 2023 was 25.3%, compared with 22.4% from the second quarter 2022.
2023 Outlook
MGP is offering the following revised consolidated guidance for fiscal 2023:
- Sales are projected to be in the range of $815 million to $835 million.
- Adjusted EBITDA is expected to be in the range of $187 million to $192 million.
- Adjusted basic EPS is forecasted to be in the $5.35 to $5.50 range, with basic weighted average shares outstanding expected to be approximately 22.1 million at year end
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