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Mar 31, 2021
MGP Ingredients Q1 2021 Earnings Report
Reported record first quarter results with consolidated sales and operating income increasing.
Key Takeaways
MGP Ingredients reported a strong first quarter in 2021, with a 9.3% increase in consolidated sales to $108.3 million and a 49.6% increase in consolidated operating income to $20.5 million. The Distillery Products segment drove growth, with premium beverage alcohol sales up 31.1%. The company anticipates improved results in the second quarter for the Ingredient Solutions segment after weather-related events impacted production in February.
Consolidated sales increased 9.3% to $108.3 million.
Consolidated gross profit increased 39.2% to $32.3 million.
Consolidated operating income increased 49.6% to $20.5 million.
Sales of premium beverage alcohol increased 31.1%.
Revenue by Segment
Forward Guidance
MGP is offering guidance for fiscal year 2021, excluding Luxco's financial results and acquisition related costs.
Positive Outlook
- 2021 adjusted sales growth is projected in the 0% to 2% range versus 2020.
- The Company’s estimate of growth in adjusted operating income in 2021 is 7% to 12%.
- Adjusted earnings per share are forecasted to be in the $2.05 to $2.15 range.
- Shares outstanding expected to be approximately 22.0 million at year end.
Challenges Ahead
- Adjusted sales growth reflects reduced sales of third-party industrial alcohol.
- Adjusted sales growth reflects reduced average selling prices resulting from selling wet versus dried distillers grains by-products.
- Full year adjusted earnings per share guidance includes the impact of the 5.0 million shares issued in connection with the Luxco acquisition.
- First quarter earnings per share results were calculated based on 17.0 million shares outstanding prior to the transaction's close.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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