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Jun 30, 2020
MGP Ingredients Q2 2020 Earnings Report
Reported an increase in consolidated sales and gross profit, driven by growth in both Distillery Products and Ingredient Solutions segments, but was impacted by a cyberattack.
Key Takeaways
MGP Ingredients reported a 2.3% increase in consolidated sales to $92.6 million and a 6.0% increase in consolidated gross profit to $20.7 million. EPS increased to $0.50 per share from $0.46 per share. The company experienced a cyberattack that temporarily disrupted production but has since resumed normal operations.
Consolidated sales increased 2.3% to $92.6 million.
Consolidated gross profit increased 6.0% to $20.7 million.
Operating income increased 4.3% to $11.3 million.
Earnings per share increased to $0.50 from $0.46.
Revenue by Segment
Forward Guidance
Given the continued uncertainty surrounding the COVID-19 virus, and the diminished visibility of a possible macroeconomic recovery in the back half of the year, the company has maintained its position against providing 2020 financial guidance at this time.
Positive Outlook
- Investments to expand international sales will provide long-term shareholder value.
- Balance sheet and access to capital continue to be strong.
- Continued execution of pandemic response plan, which focuses on protecting employees and doing our part to help stop the spread of the virus.
- Investment spend related to warehouse expansion plan was substantially completed during the quarter and totaled approximately $49.8 million.
- Continued strength of the American Whiskey category through this pandemic has confirmed the long-term value of our aged whiskey inventory.
Challenges Ahead
- Closures of bars, restaurants, and tasting rooms had an impact on our craft customer sales.
- Some of multinational customers conserve cash this quarter, which had an impact on new distillate sales results.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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