Latest news with #MGPIngredients
Yahoo
4 days ago
- 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
14-05-2025
- Business
- Yahoo
MGP Ingredients, Inc. (MGPI): One of the Underperforming Stocks Targeted By Short Sellers
We recently published a list of . In this article, we are going to take a look at where MGP Ingredients, Inc. (NASDAQ:MGPI) stands against other underperforming stocks targeted by short sellers. Short interest refers to the percentage of publicly available shares that have been sold short. It is an indicator used by many investors to determine how strong a company's bear thesis may be. Due to the nature of short selling, the short interest has become a popular indicator among investors. The reason it is given so much weightage is that people betting against a stock have usually done solid research and are confident of a company's downfall. They take unlimited risk, so when big investors or the smart money shorts a stock, people take notice. They try to unearth the red flags that may have prompted the high short interest. We decided to dig deeper and try to find out where smart money sees trouble ahead. To come up with our list of 20 underperforming stocks targeted by short sellers, we looked at the worst-performing stocks of the last six months and then ranked them by the short interest. A close-up of an iconic bottle of branded spirit produced by the distillery. Short interest: 14.59% 6 months' performance: -50.26% MGP Ingredients, Inc. (NASDAQ:MGPI) operates as a supplier and producer of branded spirits, distilled spirits, and food ingredients. The company generates its revenue through Ingredient Solutions, Distillery Solutions, and Branded Spirits segments. The US spirits industry has gone through challenges in 2024. According to The Distilled Spirits Council of the United States, increased spending on essentials like healthcare and housing, and poor sales performance of super premium liquors, drove the decline. The company experienced headwinds last year with a 16% revenue decline. However, MGP Ingredients, Inc. (NASDAQ:MGPI) managed to slightly enhance its gross margins to 41% from 39.6%. Based on the guidance, 2025 seems to be another challenging year with an expected revenue decline of approximately 20%! Although the firm is less vulnerable to tariff impacts due to its limited exposure to international sales, the little possible impact cannot be neglected when the company is already struggling. Shifting consumer preferences mainly among youngsters also pose long-term challenges for the overall industry. Overall, MGPI ranks 17th on our list of underperforming stocks targeted by short sellers. While we acknowledge the potential of MGPI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MGPI but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
04-05-2025
- Business
- Yahoo
MGP Ingredients (NASDAQ:MGPI) Will Pay A Dividend Of $0.12
The board of MGP Ingredients, Inc. (NASDAQ:MGPI) has announced that it will pay a dividend of $0.12 per share on the 30th of May. The dividend yield is 1.5% based on this payment, which is a little bit low compared to the other companies in the industry. Our free stock report includes 3 warning signs investors should be aware of before investing in MGP Ingredients. Read for free now. Even a low dividend yield can be attractive if it is sustained for years on end. Before making this announcement, MGP Ingredients' dividend was higher than its profits, but the free cash flows quite comfortably covered it. Generally, we think cash is more important than accounting measures of profit, so with the cash flows easily covering the dividend, we don't think there is much reason to worry. Analysts expect a massive rise in earnings per share in the next year. If recent patterns in the dividend continue, we could see the payout ratio reaching 17% which is fairly sustainable. Check out our latest analysis for MGP Ingredients The company has a long dividend track record, but it doesn't look great with cuts in the past. The dividend has gone from an annual total of $0.05 in 2015 to the most recent total annual payment of $0.48. This works out to be a compound annual growth rate (CAGR) of approximately 25% a year over that time. It is great to see strong growth in the dividend payments, but cuts are concerning as it may indicate the payout policy is too ambitious. With a relatively unstable dividend, it's even more important to evaluate if earnings per share is growing, which could point to a growing dividend in the future. MGP Ingredients' EPS has fallen by approximately 26% per year during the past five years. A sharp decline in earnings per share is not great from from a dividend perspective. Even conservative payout ratios can come under pressure if earnings fall far enough. It's not all bad news though, as the earnings are predicted to rise over the next 12 months - we would just be a bit cautious until this becomes a long term trend. In summary, while it's good to see that the dividend hasn't been cut, we are a bit cautious about MGP Ingredients' payments, as there could be some issues with sustaining them into the future. The payments haven't been particularly stable and we don't see huge growth potential, but with the dividend well covered by cash flows it could prove to be reliable over the short term. We would be a touch cautious of relying on this stock primarily for the dividend income. It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Taking the debate a bit further, we've identified 3 warning signs for MGP Ingredients that investors need to be conscious of moving forward. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
