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Mar 31, 2023
MGP Ingredients Q1 2023 Earnings Report
MGP Ingredients reported strong results driven by strength across all business segments.
Key Takeaways
MGP Ingredients reported a 3% increase in sales to $201.0 million for the first quarter of 2023. Gross profit decreased by 3% to $69.8 million, while operating income and net income both decreased by 17% to $41.6 million and $31.0 million, respectively. EPS decreased to $1.39 per share from $1.69 per share.
Consolidated sales increased 3% from the prior year period.
Sales of brown goods grew 10% from the prior year period to record levels.
Branded Spirits segment revenue grew 2%.
Ingredient Solutions business benefited from broader consumer trends with a shift toward plant-based diets.
Revenue by Segment
Forward Guidance
MGP is confirming the following consolidated guidance for fiscal 2023:
Positive Outlook
- Sales are projected to be in the range of $815 million to $835 million.
- Adjusted EBITDA is expected to be in the range of $178 million to $183 million.
- Adjusted basic EPS is forecasted to be in the $5.05 to $5.20 range.
- Basic weighted average shares outstanding expected to be approximately 22.2 million at year end.
- Company believes realignment with RNDC positions them well for incremental growth.
Challenges Ahead
- Disruptions in operations or a catastrophic event at any facilities
- Effect of commodity price fluctuations
- Impact of climate change
- Product recalls or other product liability claims
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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