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Dec 31, 2024
MGP Ingredients Q4 2024 Earnings Report
MGP Ingredients' fourth quarter results met expectations, with branded spirits and ingredient solutions showing positive strides amidst industry challenges.
Key Takeaways
MGP Ingredients reported a 16% decrease in consolidated sales to $180.8 million for the fourth quarter of 2024. Net income decreased to a loss of $42.0 million due to a one-time, non-cash adjustment of $73.8 million. Excluding the impact of the Atchison distillery, consolidated sales decreased by 7%.
Consolidated sales decreased by 16% to $180.8 million, or 7% excluding the Atchison distillery impact.
Gross profit decreased by 13% to $74.5 million, with a gross profit margin of 41.2%.
Net income decreased to a loss of $42.0 million, but adjusted net income decreased 6% to $34.4 million.
Basic EPS decreased to $(1.91) per share, while adjusted basic EPS decreased 4% to $1.57 per share.
Revenue by Segment
Forward Guidance
MGP Ingredients provided its consolidated financial guidance for 2025, projecting sales between $520 million and $540 million, adjusted EBITDA in the range of $105 million to $115 million, and adjusted basic EPS between $2.45 and $2.75.
Positive Outlook
- Sales are projected to be in the range of $520 million to $540 million.
- Adjusted EBITDA is expected to be in the range of $105 million to $115 million.
- Adjusted basic EPS is expected to be in the $2.45 to $2.75 range.
- Weighted average basic shares outstanding of approximately 21.3 million.
- Effective tax rate of approximately 25%.
Challenges Ahead
- Revised outlook for the Distilling Solutions business.
- Ongoing industry-wide challenges.
- Elevated industry-wide barrel whiskey inventories.
- Pressure on overall brown goods sales and pricing trends.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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