Mgp Ingredients ( (MGPI) ) has released its Q3 earnings. Here is a breakdown of the information Mgp Ingredients presented to its investors.
MGP Ingredients, Inc. is a prominent U.S. producer of premium branded and distilled spirits, along with food ingredient solutions, leveraging their extensive infrastructure and expertise to create products on a large scale.
In the third quarter of 2024, MGP Ingredients reported financial results consistent with their preliminary update, amidst challenges in the American whiskey market and industry-wide barrel inventories. The company is taking strategic steps to adjust its production and cost structure in anticipation of these market conditions.
Key financial highlights include a 24% decrease in consolidated sales to $161.5 million, though net income saw an 82% increase to $23.9 million. Notably, the company’s gross margin improved to 40.8% due to stronger performance in the Branded Spirits segment. Despite a 9% decrease in adjusted EBITDA to $45.7 million, the adjusted EBITDA margin rose by 460 basis points to 28.3%.
Looking forward, MGP Ingredients remains confident in the long-term potential of its Distilling Solutions business and anticipates stronger performance in its Ingredient Solutions segment in 2025, despite current market challenges. Continued investment in their brand portfolio is expected to drive organic growth.
