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Business Wire
14 hours ago
- Business
- Business Wire
MGP Ingredients Reports Second Quarter 2025 Results
ATCHISON, Kan.--(BUSINESS WIRE)-- MGP Ingredients, Inc. (Nasdaq: MGPI), a leading provider of branded and distilled spirits and food ingredient solutions, today reported results for the second quarter ended June 30, 2025. "Our second quarter results came in largely as expected as we delivered solid execution and sequential improvement across all three business segments. Our decisive actions to improve visibility with our customers are working as second quarter brown goods volume and price declines were in line with our expectations. Our teams remain tightly focused on key initiatives and continue to execute on our strategic priorities, which I expect will position us well for the second half and give us the confidence to reaffirm our 2025 outlook,' said Brandon Gall, CFO. He added, 'I am pleased to welcome Julie as MGP's new CEO. She brings a strong strategic lens, deep commercial expertise, and a proven ability to lead teams. I look forward to partnering with her and I am confident that under her leadership, MGP will be better positioned to sharpen execution, accelerate growth initiatives, and advance our long-term vision of becoming a premier, branded spirits company.' "I am excited to take on the CEO role and look forward to building on the progress made by Brandon and the MGP team,' said Julie Francis, president and CEO. 'Our goal continues to be delivering sustainable growth and unlocking meaningful, long-term value for all stakeholders. We will work together with clarity, integrity, and agility to strengthen our customer-centric, brands-led approach and execute with excellence across our platforms." 2025 second quarter financial highlights compared to 2024 second quarter: Consolidated sales decreased 24% to $145.5 million. Consolidated gross profit decreased 30% to $58.4 million. Gross margin decreased by 350 basis points to 40.1%. Net income decreased 55% to $14.4 million. On an adjusted basis, net income decreased 45% to $20.9 million. Basic earnings per common share ('EPS') decreased to $0.67 per share from $1.43 per share. Adjusted basic EPS decreased 43% to $0.97 per share. Adjusted EBITDA decreased 38% to $35.9 million. Year-to-date capital expenditures declined 17% to $18.7 million compared to the year-ago period, while year-to-date operating cash flows increased $26.8 million to $56.4 million. Net debt leverage ratio stands at approximately 1.8x as of June 30, 2025. Consolidated Results Second quarter 2025 consolidated sales decreased by 24% compared to the year-ago quarter, primarily due to expected declines in brown goods sales within our Distilling Solutions segment and value and mid price tiered brands within our Branded Spirits segment. Lower brown goods sales also impacted profitability, leading to a 30% decline in second quarter gross profit. Operating income decreased to $20.3 million due to lower gross profit and an $8.0 million increase in the fair value of the contingent consideration liability related to the improved performance of the Penelope brand. Adjusted operating income decreased to $28.7 million as reduced gross profit was partially offset by lower advertising and promotion expenses. Second quarter advertising and promotion expenses decreased 41% to $6.9 million as we lapped elevated spend for certain advertising campaigns in the year-ago quarter and continued to realign our spend behind our most attractive growth opportunities. Branded Spirits advertising and promotion spend of $6.3 million was approximately 10% of Branded Spirits segment sales in the second quarter. Branded Spirits Branded Spirits segment sales decreased 5% to $60.5 million compared to the prior-year quarter. Our increased focus on our most attractive growth opportunities across the American whiskey and tequila categories continued to take hold, leading to 1% growth in our premium plus sales to $31.1 million. Within our premium plus portfolio, the Penelope brand continued its strong sales trajectory with another quarter of above-category sales growth. As expected, sales of our mid and value priced portfolios, combined, declined by nearly 15% due to lower volumes of certain tequila, liqueur, and cordial brands. Branded Spirits gross profit decreased by 5% to $32.0 million, while segment gross margins increased modestly to 52.8%. Distilling Solutions Distilling Solutions segment sales decreased by 46% to $50.0 million, compared to the prior-year quarter. Although Distilling Solutions segment sales and profitability continued to be pressured by reduced customer demand for brown goods primarily due to elevated industry-wide barrel inventories, our second quarter brown goods sales volume and pricing were largely in line with our expectations, reflecting the positive impact of our proactive engagement and visibility with our customers. Distilling Solutions gross profit of $18.8 million decreased by 56%, or 37.6% of segment sales. Ingredient Solutions Ingredient Solutions segment returned to positive growth in second quarter 2025 as sales increased by 5% to $35.0 million compared to the year-ago quarter. As expected, sales improved sequentially from first quarter 2025 for each of the segment product lines reflecting commercialization of new domestic customers as well as improved operational execution relative to the first quarter. Segment gross profit increased to $7.6 million, or 21.7% of segment sales. 2025 Financial Outlook MGP provided consolidated guidance for fiscal 2025: Sales are projected to be in the range of $520 million to $540 million. Adjusted EBITDA is expected to be in the range of $105 million to $115 million. Adjusted basic EPS is expected to be in the $2.45 to $2.75 range, with weighted average basic shares outstanding of approximately 21.4 million, and an effective tax rate of approximately 25%. Full-year capital expenditures are now expected to be approximately $32.5 million relative to previous expectations of approximately $36 million. Conference Call and Webcast Information MGP Ingredients will host a conference call today, July 31, 2025, at 10 a.m. ET to discuss these results and current business trends. Investors can dial 844-308-6398 or 412-717-9605 (international) to listen to the live call. A live webcast will be available at the 'News and Events' section of the company's Investor Relations website at A replay of the conference call will be available on the company's website. About MGP Ingredients, Inc. MGP Ingredients Inc. (Nasdaq: MGPI) has been formulating excellence since 1941 by bringing product ideas to life across the alcoholic beverage and specialty ingredient industries through three segments: Branded Spirits, Distilling Solutions, and Ingredient Solutions. MGPI is one of the leading spirits distillers with an award-winning portfolio of premium brands including Penelope, Rebel, Remus, and Yellowstone bourbons and El Mayor tequila, under the Luxco umbrella. With distilleries in Indiana and Kentucky; a tequila distillery in Arandas, Mexico; and bottling operations in Missouri, Ohio, and Northern Ireland, the company creates distilled spirits for customers including many world-renowned spirits brands. In addition, the company's high-quality specialty fiber, protein, and starch ingredients provide functional, nutritional, and sensory solutions for a wide range of food products. To learn more visit Cautionary Note Regarding Forward-Looking Statements This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation statements about the ability of MGP Ingredients, Inc. (the 'Company' or 'MGP') to be well-positioned, better-positioned, sharpen execution, accelerate growth initiatives, become a premier branded spirits company, deliver growth, unlock value, strengthen its approach, and execute with excellence; and the Company's 2025 outlook, including its expectations for sales, adjusted EBITDA, adjusted basic EPS, shares outstanding, tax rate, and capital expenditures. Forward looking statements are usually identified by or are associated with words such as 'intend,' 'plan,' 'believe,' 'estimate,' 'expect,' 'anticipate,' 'project,' 'forecast,' 'hopeful,' 'should,' 'may,' 'will,' 'could,' 'encouraged,' 'opportunities,' 'potential,' and similar terminology. These forward-looking statements reflect management's current beliefs and estimates of future economic circumstances, industry conditions, Company performance, Company financial results, and Company financial condition and are not guarantees of future performance. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Factors that could cause actual results to differ materially from our expectations include without limitation any effects of changes in consumer preferences and purchases and our ability to anticipate or react to those changes; our ability to compete effectively and any effects of industry dynamics and market conditions; damage to our reputation or that of any of our key customers or their brands; failure to introduce successful new brands and products or have effective marketing or advertising; changes in public opinion about alcohol or our products; our reliance on our distributors to distribute our branded spirits; our reliance on fewer, more profitable customer relationships; interruptions in our operations or a catastrophic event at our facilities; decisions concerning the quantity of maturing stock of our aged distillate; any inability to successfully complete our capital projects or fund capital expenditures or any warehouse expansion issues; our reliance on a limited number of suppliers; work disruptions or stoppages; climate change and measures to address climate change; regulation and taxation and compliance with existing or future laws and regulations; tariffs, trade relations, and trade policies; excise taxes, incentives and customs duties; our ability to protect our intellectual property rights and defend against alleged intellectual property rights infringement claims; failure to secure and maintain listings in control states; labeling or warning requirements or limitations on the availability of our products; product recalls or other product liability claims; anti-corruption laws, trade sanctions, and restrictions; litigation or legal proceedings; limited rights of common stockholders and anti-takeover provisions in our governing documents; the impact of issuing shares of our common stock; higher costs or the unavailability and cost of raw materials, product ingredients, energy resources, or labor; failure of our information technology systems, networks, processes, associated sites, or service providers; acquisitions and potential future acquisitions; interest rate increases; reliance on key personnel; commercial, political, and financial risks; covenants and other provisions in our credit arrangements; pandemics or other health crises; ability to pay any dividends and make any share repurchases; and the effectiveness or execution of our strategic plan. For further information on these risks and uncertainties and other factors that could affect the Company's business, see the 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations' sections of the Company's Annual Report on Form 10-K for the year ended December 31, 2024 and its Quarterly Reports on Form 10-Q for the quarters ended March 31 and June 30, 2025, as well as the Company's other SEC filings. The Company undertakes no obligation to update any forward-looking statements or information in this press release, except as required by law. Non-GAAP Financial Measures In addition to reporting financial information in accordance with U.S. GAAP, the Company provides certain non-GAAP financial measures that are not in accordance with, or alternatives for, GAAP. In addition to the comparable GAAP measures, the Company has disclosed adjusted operating income, adjusted income before income taxes, adjusted net income, adjusted MGP earnings, adjusted EBITDA, net debt, net debt leverage ratio, and adjusted basic and diluted EPS, as well as guidance for adjusted EBITDA and adjusted basic EPS. The presentation of these non-GAAP financial measures should be reviewed in conjunction with operating income, income before income taxes, net income, net income used in earnings per common share calculation, debt, and basic and diluted EPS computed in accordance with U.S. GAAP and should not be considered a substitute for the GAAP measure. We believe that the non-GAAP measures provide useful information to investors regarding the Company's performance and overall results of operations. In addition, management uses these non-GAAP measures in conjunction with GAAP measures when evaluating the Company's operating results compared to prior periods on a consistent basis, assessing financial trends, and for forecasting purposes. Non-GAAP financial measures may not provide information that is directly comparable to other companies, even if similar terms are used to identify such measures. The attached schedules provide a full reconciliation of historical non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure. Full year 2025 guidance measures of adjusted EBITDA and adjusted basic EPS are provided on a non-GAAP basis without a reconciliation to the most directly comparable GAAP measures because the Company is unable to predict with a reasonable degree of certainty certain items contained in the GAAP measures without unreasonable efforts. Such items include without limitation, acquisition related expenses, restructuring and related expenses, and other items not reflective of the Company's ongoing operations. MGP INGREDIENTS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Dollars in thousands) December 31, 2024 ASSETS Current Assets: Cash and cash equivalents $ 17,320 $ 25,273 Receivables, net 117,190 148,488 Inventory 379,702 364,944 Prepaid expenses 5,711 3,983 Refundable income taxes 320 3,448 Total current assets 520,243 546,136 Property, plant, and equipment 581,901 562,714 Less accumulated depreciation and amortization (256,150 ) (246,042 ) Property, plant, and equipment, net 325,751 316,672 Operating lease right-of-use assets, net 15,270 15,540 Investment in joint venture 7,519 7,024 Intangible assets, net 266,824 268,451 Goodwill 247,789 247,789 Other assets 2,664 4,173 TOTAL ASSETS $ 1,386,060 $ 1,405,785 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of long-term debt $ 6,400 $ 6,400 Accounts payable 41,932 66,336 Contingent consideration - current 108,000 — Federal and state excise taxes payable 3,855 5,358 Accrued expenses and other 18,424 14,356 Total current liabilities 178,611 92,450 Long-term debt, less current maturities 94,663 121,277 Convertible senior notes 196,023 195,864 Long-term operating lease liabilities 11,814 11,940 Contingent consideration — 85,300 Other noncurrent liabilities 2,291 2,981 Deferred income taxes 62,529 63,430 Total liabilities 545,931 573,242 Total equity 840,129 832,543 TOTAL LIABILITIES AND TOTAL EQUITY $ 1,386,060 $ 1,405,785 Expand MGP INGREDIENTS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Dollars in thousands) Year to Date Ended June 30, 2025 2024 Cash Flows from Operating Activities Net income $ 11,370 $ 52,601 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 11,638 10,618 Share-based compensation 2,030 1,981 Equity method investment gain (494 ) (614 ) Deferred income taxes, including change in valuation allowance (901 ) (10 ) Change in fair value of contingent consideration 22,700 9,500 Other, net 446 270 Changes in operating assets and liabilities: Receivables, net 31,103 (14,766 ) Inventory (15,224 ) (11,754 ) Prepaid expenses (1,752 ) (1,217 ) Income taxes payable (refundable) 3,128 (1,818 ) Accounts payable (10,687 ) (6,345 ) Accrued expenses and other 4,663 (10,738 ) Federal and state excise taxes payable (1,504 ) 2,241 Other, net (159 ) (367 ) Net cash provided by operating activities 56,357 29,582 Cash Flows from Investing Activities Additions to property, plant, and equipment (32,156 ) (33,397 ) Other, net (11 ) (260 ) Net cash used in investing activities (32,167 ) (33,657 ) Cash Flows from Financing Activities Payment of dividends and dividend equivalents (5,156 ) (5,344 ) Repurchase of Common Stock (1,035 ) (9,735 ) Loan fees paid related to borrowings (2,712 ) — Proceeds from long-term debt 28,000 50,000 Principal payments on long-term debt (52,200 ) (28,200 ) Net cash provided by (used in) financing activities (33,103 ) 6,721 Effect of exchange rate changes on cash and cash equivalents 960 (23 ) Increase (decrease) in cash and cash equivalents (7,953 ) 2,623 Cash and cash equivalents, beginning of period 25,273 18,388 Cash and cash equivalents, end of period $ 17,320 $ 21,011 Expand Quarter Ended June 30, 2024 Operating Income Income before Income Taxes Net Income MGP Earnings (a) Basic and Diluted EPS Reported GAAP Results $ 43,387 $ 42,125 $ 32,017 $ 31,738 $ 1.43 Adjusted to remove: Impairment of long-lived assets and other (f) 21 21 16 16 — Fair value of contingent consideration (b) 5,400 5,400 4,104 4,104 0.19 Business acquisition costs (g) 15 15 11 11 — Executive transition costs (c) 843 843 641 641 0.03 Unusual items costs (h) 1,639 1,639 1,246 1,246 0.06 Adjusted Non-GAAP results $ 51,305 $ 50,043 $ 38,035 $ 37,756 $ 1.71 Expand Year to Date Ended June 30, 2024 Operating Income Income before Income Taxes Net Income MGP Earnings (a) Basic and Diluted EPS Adjusted to remove: Impairment of long-lived assets and other (f) 137 137 105 105 — Fair value of contingent consideration (b) 9,500 9,500 7,249 7,249 0.33 Business acquisition costs (g) 86 86 66 66 — Executive transition costs (c) 1,218 1,218 929 929 0.04 Unusual items costs (h) 1,639 1,639 1,251 1,251 0.06 Adjusted Non-GAAP results $ 84,884 $ 81,551 $ 62,201 $ 61,748 $ 2.79 Expand MGP INGREDIENTS, INC. DESCRIPTION OF NON-GAAP ITEMS (a) MGP Earnings is defined as "Net income used in Earnings Per Common Share calculation," which accounts for the impacts of the net loss attributable to noncontrolling interest and income attributable to participating securities. (b) Fair value of contingent consideration relates to the quarterly adjustment of the contingent consideration liability related to the acquisition of Penelope Bourbon LLC. It is included in the Condensed Consolidated Statement of Income as a component of operating income and relates to the Branded Spirits segment. (c) The executive transition costs are included in the Condensed Consolidated Statement of Income within the selling, general, and administrative line item. The adjustment includes costs related to the transition of certain executive and board of director positions. (d) The professional services fees are included in the Condensed Consolidated Statement of Income within the selling, general, and administrative line item. The adjustment includes costs related to professional services in conjunction with the goodwill impairment valuation. (e) The restructuring and other costs are included in the Condensed Consolidated Statement of Income within the selling, general, and administrative line item. The adjustment includes special one-time severance costs related to the reduction in force that occurred during the period. (f) The impairment of long-lived assets and other relates to impairments of assets as well as miscellaneous expenses in connection with the closure of the Atchison distillery. Impairment of long-lived assets and other are included in the Condensed Consolidated Statement of Income as a component of operating income and relates to the Distilling Solutions segment. (g) Business acquisition costs are included in the Condensed Consolidated Statement of Income within the selling, general, and administrative line item and include transaction and integration costs associated with the acquisition of Penelope Bourbon LLC. (h) The unusual items costs are included in the Condensed Consolidated of Income within the selling, general, and administrative line item. The adjustment includes professional and legal costs associated with special projects. Expand Quarter Ended June 30, Year to Date Ended June 30, 2025 2024 2025 2024 Net Income $ 14,427 $ 32,017 $ 11,370 $ 52,601 Interest expense 1,897 2,205 3,751 4,224 Income tax expense 4,308 10,108 4,979 16,370 Depreciation and amortization 5,830 5,329 11,638 10,618 Share based compensation 1,288 865 2,030 1,981 Equity method investment gain (237 ) (910 ) (494 ) (614 ) Fair value of contingent consideration 8,000 5,400 22,700 9,500 Executive transition costs 376 843 682 1,218 Professional service fees — — 382 — Restructuring and other costs — — 613 — Impairment of long-lived assets and other — 21 — 137 Business acquisition costs — 15 — 86 Unusual items costs — 1,639 — 1,639 Adjusted EBITDA $ 35,889 $ 57,532 $ 57,651 $ 97,760 Expand The non-GAAP adjusted EBITDA measure is defined as earnings before interest expense, income tax expense, depreciation and amortization, share based compensation, equity method investment gain, fair value of contingent consideration, executive transition costs, professional service fees, impairment of long-lived assets and other, business acquisition costs, restructuring and other costs, and unusual items costs. See "Reconciliation of selected GAAP measure to adjusted non-GAAP measures" and "Description of Non-GAAP items" for further details on selected non-GAAP items. (a) TTM is defined as trailing twelve months. (b) Net debt leverage ratio is defined as net debt divided by adjusted EBITDA. Expand See "Reconciliation of selected GAAP measure to adjusted non-GAAP measures" and "Description of Non-GAAP items" for further details on selected non-GAAP items. DISTILLING SOLUTIONS Quarter Ended June 30, Quarter versus Quarter Change Increase/(Decrease) 2025 2024 $ Change % Change Brown goods $ 35,057 $ 75,443 $ (40,386 ) (54 )% Warehouse services 8,001 8,392 (391 ) (5 ) White goods and other co-products 6,942 9,553 (2,611 ) (27 ) Total Distilling Solutions Sales $ 50,000 $ 93,388 $ (43,388 ) (46 )% Gross profit $ 18,812 $ 42,473 $ (23,661 ) (56 )% Gross margin % 37.6 % 45.5 % (7.9 ) pp (a) Operating income $ 17,741 $ 41,528 $ (23,787 ) (57 )% Depreciation and amortization $ 2,025 $ 1,968 $ 57 3 % Expand INGREDIENT SOLUTIONS SALES Quarter Ended June 30, Quarter versus Quarter Change Increase / (Decrease) 2025 2024 $ Change % Change Specialty wheat starches $ 18,474 $ 19,203 $ (729 ) (4 )% Specialty wheat proteins 12,612 11,200 1,412 13 Commodity wheat starches 3,061 2,973 88 3 Commodity wheat proteins 827 — 827 n/a Total Ingredient Solutions $ 34,974 $ 33,376 $ 1,598 5 % Gross profit $ 7,591 $ 7,126 $ 465 7 % Gross margin % 21.7 % 21.4 % 0.3 pp (a) Operating income $ 6,290 $ 5,784 $ 506 9 % Depreciation and amortization $ 1,307 $ 1,170 $ 137 12 % Expand (a) Percentage points ('pp'). Expand MGP INGREDIENTS, INC. OPERATING SEGMENT RESULTS (UNAUDITED) (Dollars in thousands) BRANDED SPIRITS SALES Year to Date Ended June 30, Year to Date versus Year to Date Sales Change Increase/(Decrease) 2025 2024 $ Change % Change Premium plus $ 53,417 $ 51,613 $ 1,804 4 % Mid 28,520 31,822 (3,302 ) (10 ) Value 16,277 21,664 (5,387 ) (25 ) Other 10,533 9,088 1,445 16 Total Branded Spirits $ 108,747 $ 114,187 $ (5,440 ) (5 )% Gross profit $ 54,182 $ 56,165 $ (1,983 ) (4 )% Gross margin % 49.8 % 49.2 % 0.6 pp (a) Operating income $ (409 ) $ 8,143 $ (8,552 ) (105 )% Depreciation and amortization $ 4,285 $ 3,675 $ 610 17 % Expand DISTILLING SOLUTIONS SALES 2025 2024 $ Change % Change Brown goods $ 68,713 $ 141,774 $ (73,061 ) (52 )% Warehouse services 16,078 16,348 (270 ) (2 ) White goods and other co-products 12,152 20,118 (7,966 ) (40 ) Total Distilling Solutions $ 96,943 $ 178,240 $ (81,297 ) (46 )% Gross profit $ 37,492 $ 76,556 $ (39,064 ) (51 )% Gross margin % 38.7 % 43.0 % (4.3 ) pp (a) Operating income $ 35,623 $ 74,597 $ (38,974 ) (52 )% Depreciation and amortization $ 4,080 $ 3,925 $ 155 4 % Expand Year to Date Ended June 30, Year to Date versus Year to Date Sales Change Increase/(Decrease) 2025 2024 $ Change % Change Specialty wheat starches $ 34,327 $ 41,474 $ (7,147 ) (17 )% Specialty wheat proteins 19,960 21,195 (1,235 ) (6 ) Commodity wheat starches 5,780 6,235 (455 ) (7 ) Commodity wheat proteins 1,390 37 1,353 3,657 Total Ingredient Solutions $ 61,457 $ 68,941 $ (7,484 ) (11 )% Gross profit $ 10,043 $ 13,306 $ (3,263 ) (25 )% Gross margin % 16.3 % 19.3 % (3.0 ) pp (a) Operating income $ 7,298 $ 10,504 $ (3,206 ) (31 )% Depreciation and amortization $ 2,578 $ 2,339 $ 239 10 % Expand (a) Percentage points ('pp'). Expand MGP INGREDIENTS, INC. DILUTIVE SHARES OUTSTANDING CALCULATION (UNAUDITED) Quarter Ended June 30, Year to Date Ended June 30, Principal amount of the bonds $ 201,250,000 $ 201,250,000 $ 201,250,000 $ 201,250,000 Par value $ 1,000 $ 1,000 $ 1,000 $ 1,000 Number of bonds outstanding (a) 201,250 201,250 201,250 201,250 Initial conversion rate 10.3911 10.3911 10.3911 10.3911 Conversion price $ 96.23620 $ 96.23620 $ 96.23620 $ 96.23620 Average share price (b) $ 29.73403 $ 78.03794 $ 31.56250 $ 82.27766 Impact of conversion (c) $ — $ — $ — $ — Cash paid for principal (201,250,000 ) (201,250,000 ) (201,250,000 ) (201,250,000 ) Conversion premium $ — $ — $ — $ — Average share price $ 29.73403 $ 78.03794 $ 31.56250 $ 82.27766 Conversion premium in shares (d) (e) — — — — Expand (a) Number of bonds outstanding is calculated by taking the principal amount of the bonds divided by the par value. (b) Average share price is calculated by taking the average of the daily closing share price for the period. If the average share price is less than the conversion price of $96.23620 per share, the impact to EPS is anti-dilutive and therefore the shares were excluded from the diluted EPS calculation. (c) Impact of conversion is calculated by taking the number of bonds outstanding multiplied by the initial conversion rate multiplied by the average share price. If the average share price is less than the conversion price then the impact of conversion is zero. (d) The impacts of the Convertible Senior Notes are included in the diluted weighted average common shares outstanding if the impact is dilutive. The Convertible Senior Notes would only have a dilutive impact if the average market price per share during the quarter exceed the conversion price of $96.23620 per share. (e) Conversion premium in shares is calculated by taking the conversion premium divided by the average share price. If the average share price is less than the conversion price, then the conversion premium in shares is zero. Expand
Yahoo
05-06-2025
- Business
- Yahoo
Reflecting On Beverages, Alcohol, and Tobacco Stocks' Q1 Earnings: MGP Ingredients (NASDAQ:MGPI)
As the Q1 earnings season comes to a close, it's time to take stock of this quarter's best and worst performers in the beverages, alcohol, and tobacco industry, including MGP Ingredients (NASDAQ:MGPI) and its peers. These companies' performance is influenced by brand strength, marketing strategies, and shifts in consumer preferences. Changing consumption patterns are particularly relevant and can be seen in the rise of cannabis, craft beer, and vaping or the steady decline of soda and cigarettes. Companies that spend on innovation to meet consumers where they are with regards to trends can reap huge demand benefits while those who ignore trends can see stagnant volumes. Finally, with the advent of the social media, the cost of starting a brand from scratch is much lower, meaning that new entrants can chip away at the market shares of established players. The 15 beverages, alcohol, and tobacco stocks we track reported a mixed Q1. As a group, revenues missed analysts' consensus estimates by 0.5%. In light of this news, share prices of the companies have held steady as they are up 1.9% on average since the latest earnings results. Headquartered in Atchison, Kansas, MGP Ingredients (NASDAQ:MGPI) is a leading supplier of high-quality ingredients to the food and beverage industry MGP Ingredients reported revenues of $121.7 million, down 28.7% year on year. This print exceeded analysts' expectations by 3.5%. Overall, it was a strong quarter for the company with a solid beat of analysts' EBITDA and gross margin estimates. 'We are pleased with first quarter results that keep us on track to meet our full-year guidance. While elevated industry-wide barrel whiskey inventories and a cautious consumer environment remain as headwinds, we saw signs of positive progress across all three of our business segments. These early signs of stabilization give us confidence that the proactive actions we are taking are beginning to take hold,' said Brandon Gall, Interim President and CEO, and CFO. MGP Ingredients pulled off the highest full-year guidance raise but had the slowest revenue growth of the whole group. The stock is up 5.3% since reporting and currently trades at $30.99. Is now the time to buy MGP Ingredients? Access our full analysis of the earnings results here, it's free. With a primary focus on soda but also a presence in energy drinks and teas, Zevia (NYSE:ZVIA) is a better-for-you beverage company. Zevia reported revenues of $38.02 million, down 2% year on year, outperforming analysts' expectations by 1.7%. The business had a very strong quarter with a solid beat of analysts' EPS estimates and an impressive beat of analysts' EBITDA estimates. The market seems happy with the results as the stock is up 26% since reporting. It currently trades at $2.57. Is now the time to buy Zevia? Access our full analysis of the earnings results here, it's free. Sporting an impressive roster of iconic beer brands, Molson Coors (NYSE:TAP) is a global brewing giant with a rich history dating back more than two centuries. Molson Coors reported revenues of $2.30 billion, down 11.3% year on year, falling short of analysts' expectations by 5.1%. It was a disappointing quarter as it posted a significant miss of analysts' adjusted operating income estimates. As expected, the stock is down 7.1% since the results and currently trades at $52.77. Read our full analysis of Molson Coors's results here. A pioneer and behemoth in carbonated soft drinks, Coca-Cola (NYSE:KO) is a storied beverage company best known for its flagship soda. Coca-Cola reported revenues of $11.22 billion, flat year on year. This result surpassed analysts' expectations by 0.6%. More broadly, it was a satisfactory quarter as it also recorded a decent beat of analysts' organic revenue estimates but EBITDA in line with analysts' estimates. The stock is flat since reporting and currently trades at $71.35. Read our full, actionable report on Coca-Cola here, it's free. Founded in 2013, Tilray Brands (NASDAQ:TLRY) engages in cannabis research, cultivation, and distribution, offering a range of medical and recreational cannabis products, hemp-based foods, and alcoholic beverages. Tilray reported revenues of $185.8 million, down 1.4% year on year. This number came in 10.1% below analysts' expectations. Overall, it was a slower quarter as it also produced a significant miss of analysts' EBITDA and gross margin estimates. Tilray had the weakest performance against analyst estimates and weakest full-year guidance update among its peers. The stock is down 29.4% since reporting and currently trades at $0.41. Read our full, actionable report on Tilray here, it's free. Thanks to the Fed's rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn't send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump's November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Associated Press
27-05-2025
- Business
- Associated Press
MGP Ingredients Announces Board Leadership Changes
ATCHISON, Kan.--(BUSINESS WIRE)--May 27, 2025-- MGP Ingredients, Inc. (Nasdaq: MGPI), a leading provider of branded and distilled spirits and food ingredient solutions, announced that Martin Roper has been elected Chairman of the Board effective May 22, 2025. Martin Roper joined the MGP Board of Directors in April 2025 and brings more than 25 years of beverage industry experience, including nearly two decades as CEO of The Boston Beer Company and his current position as CEO of The Vita Coco Company. 'It's an honor to take on the role of Chairman at a dynamic time for MGP,' said Martin Roper. 'The company has built a strong foundation and is making meaningful progress across its focused initiatives. I look forward to working with my fellow directors and management to build on that progress, sharpening our strategic priorities, strengthening our execution capabilities, and delivering sustained value to shareholders.' 'Martin's appointment comes at a critical juncture for the company as we continue our evolution into a premier, branded spirits organization,' said Brandon Gall, Interim President and CEO, and CFO. 'His deep industry expertise, fresh perspective, and strong track record of value creation in the public markets will be highly valuable as MGP enters its next phase of growth.' Concurrent with the change of Chairman of the Board, the board appointed Jennifer Lowry as the Chair of the Audit Committee, Todd Siwak as the Chair of the Nominating and Governance Committee, and Tom Gerke as the Chair of the Human Resources and Compensation Committee of the Board. About MGP MGP Ingredients, Inc. (Nasdaq: MGPI) has been formulating excellence since 1941 by bringing product ideas to life across the alcoholic beverage and specialty ingredient industries through three segments: Branded Spirits, Distilling Solutions, and Ingredient Solutions. MGP is one of the leading spirits distillers with an award-winning portfolio of premium brands including Penelope, Rebel, Remus, and Yellowstone bourbons and El Mayor tequila, under the Luxco umbrella. With distilleries in Indiana and Kentucky, a tequila distillery joint venture in Arandas, Mexico, and bottling operations in Missouri, Ohio, and Northern Ireland, the company creates distilled spirits for customers including many world-renowned spirits brands. In addition, the company's high-quality specialty fiber, protein, and starch ingredients provide functional, nutritional, and sensory solutions for a wide range of food products. To learn more, please visit View source version on CONTACT: For More InformationInvestors: Amit Sharma [email protected]: Patrick Barry [email protected] 314-540-3865 KEYWORD: KANSAS UNITED STATES NORTH AMERICA INDUSTRY KEYWORD: RETAIL SPECIALTY OTHER RETAIL WINE & SPIRITS SOURCE: MGP Ingredients, Inc. Copyright Business Wire 2025. PUB: 05/27/2025 04:05 PM/DISC: 05/27/2025 04:05 PM
Yahoo
15-05-2025
- Business
- Yahoo
MGPI Q1 Earnings Call: Revenue Tops Expectations, Margin Pressures Remain Amid Strategic Refocusing
Food and beverage supplier MGP Ingredients (NASDAQ:MGPI) reported revenue ahead of Wall Street's expectations in Q1 CY2025, but sales fell by 28.7% year on year to $121.7 million. The company expects the full year's revenue to be around $530 million, close to analysts' estimates. Its non-GAAP profit of $0.36 per share was 3.3% below analysts' consensus estimates. Is now the time to buy MGPI? Find out in our full research report (it's free). Revenue: $121.7 million vs analyst estimates of $117.5 million (28.7% year-on-year decline, 3.5% beat) Adjusted EPS: $0.36 vs analyst expectations of $0.37 (3.3% miss) Adjusted EBITDA: $21.76 million vs analyst estimates of $19.54 million (17.9% margin, 11.3% beat) The company reconfirmed its revenue guidance for the full year of $530 million at the midpoint Management reiterated its full-year Adjusted EPS guidance of $2.60 at the midpoint EBITDA guidance for the full year is $110 million at the midpoint, above analyst estimates of $107.9 million Operating Margin: -0.6%, down from 17% in the same quarter last year Free Cash Flow was $24.76 million, up from -$2.4 million in the same quarter last year Market Capitalization: $691.8 million MGP Ingredients delivered first quarter results that management described as in line with expectations, emphasizing early progress on its core initiatives to stabilize the brown goods (whiskey) business and focus on premium brands within its Branded Spirits segment. Interim CEO and CFO Brandon Gall highlighted that while industry-wide whiskey inventories remain elevated and consumer demand is cautious, targeted investments in premium products like Penelope, El Mayor, and Rebel 100 led to growth within the company's Premium Plus portfolio. Gall noted, 'These early signs of stabilization are encouraging and give us confidence that the proactive steps we're taking are beginning to take hold.' Looking ahead, management reaffirmed its full-year revenue and profit guidance, citing ongoing productivity initiatives and cost controls as central to achieving its targets. Gall reiterated that operational execution, particularly in ingredient production and customer partnerships, will be key for the remainder of the year. The company believes its pipeline of innovation and efficiency projects, along with a strengthened balance sheet, position it to navigate current market headwinds. Management stated it would continue to monitor the industry's inventory correction and supply chain challenges, maintaining a focus on shareholder value creation. MGP Ingredients' management attributed first quarter performance to a mix of consumer and industry trends, as well as disciplined execution of strategic initiatives. The quarter's deviations from analyst expectations were primarily linked to a sharper decline in year-over-year revenues, offset by better-than-expected cost controls and working capital management. Premium Plus brands drive growth: The Branded Spirits segment's Premium Plus portfolio, including Penelope, El Mayor, and Rebel 100, posted 7% growth, fueled by targeted brand investment and product innovation such as Penelope Wheated and ready-to-serve cocktails. Distilling Solutions stabilization efforts: Management focused on recalibrating customer contracts and production volumes in Distilling Solutions, leading to more collaborative customer relationships and extended agreements, though overall brown goods volumes and pricing were down as anticipated. Ingredient Solutions execution challenges: Sales in the Ingredient Solutions segment were impacted by adverse weather and the Atchison distillery closure, but management cited progress on operational projects like the Deep Well and biofuel facilities, expected to improve efficiency and margin in future quarters. Cost structure and productivity: The company's ongoing productivity agenda, including scheduling optimization and supply chain efficiencies, helped mitigate margin pressures from lower whiskey volumes and ingredient production issues. Leadership and governance updates: The ongoing CEO search continues, but recent Board of Directors changes are intended to strengthen oversight and support execution of growth initiatives, with Gall emphasizing that strategic projects are moving forward despite interim leadership. Management's outlook for the remainder of the year is shaped by ongoing efforts to optimize product mix, improve operational reliability, and navigate an industry-wide inventory reset, with a focus on margin discipline and targeted brand investments. Premiumization strategy: The company believes continued emphasis on premium spirits brands and innovation will support revenue stability, even as mid- and value-tier brands face ongoing declines and promotional pressures. Operational improvements: Projects in ingredient production, such as the new biofuel facility and increased maintenance investment, are expected to improve reliability and reduce costs, positioning the Ingredient Solutions segment for sequential improvement. Risks from market dynamics: Management acknowledged the risk of prolonged elevated whiskey inventories across the industry, as well as potential supply chain disruptions and consumer caution, which could affect timing and magnitude of any recovery. Marc Torrente (Wells Fargo): Asked about the visibility and progress in recalibrating customer contracts in Distilling Solutions. Management said 75% of customer negotiations are complete, with most adjustments reflected in current guidance and further extensions possible. Bill Chappell (Truist Securities): Sought more detail on stabilization actions for mid- and value-tier spirits brands and improvement plans for Ingredient Solutions. Management pointed to price support strategies and operational investments, expecting gradual improvement but emphasizing execution risk. Seamus Cassidy (TD Cowen): Questioned whether Premium Plus growth exceeded expectations and how pricing actions will impact segment margins. Management confirmed a strong start from Penelope but maintained a cautious full-year outlook, noting that price reductions do not always translate to lower margins. Sean McGowan (ROTH Capital): Inquired about any demand shifts related to tariff concerns and the sustainability of Penelope's improved performance. Management reported no evidence of tariff-driven customer behavior and reiterated optimism about Penelope's growth trajectory. Mitch Pinheiro (Sturdivant): Asked about production timing, inventory management, and the effect of lower throughput on cost structure. Management explained that higher Q1 branded barrel put-away was due to scheduling and affirmed productivity initiatives are designed to maintain competitiveness despite volume reductions. In upcoming quarters, the StockStory team will be monitoring (1) the pace and success of renegotiated customer contracts and inventory management in the Distilling Solutions segment, (2) operational reliability and throughput improvements in Ingredient Solutions as new projects come online, and (3) the ability of premium brands to offset declines in mid- and value-tier spirits. Execution on cost-saving and productivity initiatives, as well as the ongoing CEO search, will also be key indicators of future performance. MGP Ingredients currently trades at a forward P/E ratio of 12.2×. At this valuation, is it a buy or sell post earnings? The answer lies in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. 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Yahoo
01-05-2025
- Business
- Yahoo
MGP Ingredients's (NASDAQ:MGPI) Q1 Sales Top Estimates
Food and beverage supplier MGP Ingredients (NASDAQ:MGPI) beat Wall Street's revenue expectations in Q1 CY2025, but sales fell by 28.7% year on year to $121.7 million. The company expects the full year's revenue to be around $530 million, close to analysts' estimates. Its non-GAAP profit of $0.36 per share was 3.7% below analysts' consensus estimates. Is now the time to buy MGP Ingredients? Find out in our full research report. Revenue: $121.7 million vs analyst estimates of $117.5 million (28.7% year-on-year decline, 3.5% beat) Adjusted EPS: $0.36 vs analyst expectations of $0.37 (3.7% miss) Adjusted EBITDA: $21.76 million vs analyst estimates of $19.54 million (17.9% margin, 11.3% beat) The company reconfirmed its revenue guidance for the full year of $530 million at the midpoint Management reiterated its full-year Adjusted EPS guidance of $2.60 at the midpoint EBITDA guidance for the full year is $110 million at the midpoint, above analyst estimates of $107.9 million Operating Margin: -0.6%, down from 17% in the same quarter last year Free Cash Flow was $24.76 million, up from -$2.4 million in the same quarter last year Market Capitalization: $626.8 million 'We are pleased with first quarter results that keep us on track to meet our full-year guidance. While elevated industry-wide barrel whiskey inventories and a cautious consumer environment remain as headwinds, we saw signs of positive progress across all three of our business segments. These early signs of stabilization give us confidence that the proactive actions we are taking are beginning to take hold,' said Brandon Gall, Interim President and CEO, and CFO. Headquartered in Atchison, Kansas, MGP Ingredients (NASDAQ:MGPI) is a leading supplier of high-quality ingredients to the food and beverage industry A company's long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. With $654.7 million in revenue over the past 12 months, MGP Ingredients is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers. As you can see below, MGP Ingredients's revenue declined by 2.8% per year over the last three years, a tough starting point for our analysis. This quarter, MGP Ingredients's revenue fell by 28.7% year on year to $121.7 million but beat Wall Street's estimates by 3.5%. Looking ahead, sell-side analysts expect revenue to decline by 20% over the next 12 months, a deceleration versus the last three years. This projection is underwhelming and implies its products will see some demand headwinds. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king. MGP Ingredients has shown decent cash profitability, giving it some flexibility to reinvest or return capital to investors. The company's free cash flow margin averaged 6.5% over the last two years, slightly better than the broader consumer staples sector. Taking a step back, we can see that MGP Ingredients's margin expanded by 4.3 percentage points over the last year. This shows the company is heading in the right direction, and we can see it became a less capital-intensive business because its free cash flow profitability rose while its operating profitability fell. MGP Ingredients's free cash flow clocked in at $24.76 million in Q1, equivalent to a 20.4% margin. Its cash flow turned positive after being negative in the same quarter last year, building on its favorable historical trend. We were impressed by how significantly MGP Ingredients blew past analysts' EBITDA expectations this quarter. We were also glad its gross margin outperformed Wall Street's estimates. On the other hand, its EPS missed. Overall, this quarter had some key positives. The stock traded up 3.3% to $30.42 immediately after reporting. MGP Ingredients had an encouraging quarter, but one earnings result doesn't necessarily make the stock a buy. Let's see if this is a good investment. The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
