Mgp Ingredients ( (MGPI) ) has released its Q4 earnings. Here is a breakdown of the information Mgp Ingredients presented to its investors.
MGP Ingredients, Inc. is a prominent producer of premium branded and distilled spirits and food ingredient solutions, operating primarily in the beverage and food industries with a strong focus on innovation and quality. The company has reported its financial results for the fourth quarter and full year of 2024, highlighting challenges and strategic adjustments in its operations.
In the fourth quarter of 2024, MGP Ingredients faced a 16% decline in consolidated sales, amounting to $180.8 million, influenced by industry-wide elevated whiskey inventories. Despite these challenges, the company saw growth in its premium plus portfolio, led by Penelope, and improvements in its Ingredient Solutions segment. However, a significant one-time, non-cash goodwill adjustment in the Branded Spirits segment led to a net loss of $42.0 million for the quarter.
For the full year 2024, MGP Ingredients experienced a 16% decrease in consolidated sales to $703.6 million, with a 68% drop in net income to $34.5 million, primarily due to the goodwill adjustment. The company reported a decrease in adjusted EBITDA by 6% to $196.5 million. Notably, the Ingredient Solutions segment showed resilience with a 4% increase in fourth-quarter sales, driven by specialty protein and starch sales.
Looking ahead, MGP Ingredients has provided its financial guidance for 2025, projecting sales between $520 million and $540 million, with adjusted EBITDA expected to range from $105 million to $115 million. The company remains focused on repositioning its Distilling Solutions business and executing its long-term strategy to establish itself as a premier branded spirits company.