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Sep 30, 2024
MGP Ingredients Q3 2024 Earnings Report
MGP Ingredients' Q3 2024 performance aligned with preliminary results, with sales decreasing and net income increasing.
Key Takeaways
MGP Ingredients reported a 24% decrease in consolidated sales to $161.5 million, while net income increased by 82% to $23.9 million. The company is taking steps to mitigate the impact of softening American whiskey category trends and elevated industry-wide barrel inventories.
Consolidated sales decreased by 24% to $161.5 million.
Net income increased by 82% to $23.9 million, with a net income margin of 14.8%.
Basic earnings per share increased to $1.07 from $0.59.
Consolidated gross profit decreased by 10% to $65.8 million, while gross margin increased to 40.8%.
Revenue by Segment
Forward Guidance
MGP reaffirmed its recently revised consolidated guidance for fiscal 2024.
Positive Outlook
- Sales in the range of $695 million to $705 million.
- Adjusted EBITDA in the range of $196 million to $200 million, inclusive of the add back of share-based compensation expense.
- Adjusted basic EPS in the $5.55 to $5.65 range, with approximately 22.1 million basic weighted average shares outstanding at the year end and effective tax rate of approximately 24%.
- Full year capital expenditures of $78 million.
- The company will provide additional commentary on its 2025 outlook in its conference call discussing the third quarter results.
Challenges Ahead
- Softening American whiskey category trends
- Elevated industry-wide barrel inventories
- Further lowering net aging whiskey put away in 2025
- Scaling down whiskey production in 2025
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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