ATCHISON, Kan. - MGP Ingredients , Inc. (NASDAQ:MGPI), known for its premium branded spirits and food ingredient solutions, has announced David Colyott as the new Executive Vice President of Operations. Colyott will be stepping into the role following the retirement of Steve Glaser in July 2024. Glaser has been with the company for 13 years and his leadership has been pivotal in building a strong supply chain team.
Colyott joins MGP with a wealth of experience, having led supply chain operations for over 30 years in the consumer packaged goods sector. His recent tenure includes serving as Vice President of the Supply Chain Center of Excellence at Mars Petcare since 2018, and prior to that, a decade as Supply Chain Director for Nestlé Waters (NYSE:WAT) North America. His early career included roles at Ryder and The Home Depot (NYSE:HD).
David Bratcher, CEO and President of MGP Ingredients, expressed his enthusiasm for Colyott's appointment, citing his extensive experience in global supply chain management and leadership as valuable assets that align with MGP's strategic vision. Bratcher also acknowledged Glaser's significant contributions to the company.
Colyott's academic background includes a Bachelor of Science in Marketing with a Minor in Psychology from Eastern Illinois University, complemented by executive leadership programs at London School of Business, Nestlé, and Mars Petcare.
MGP Ingredients has been a major player in the U.S. distillery space, producing a variety of spirits including bourbon, rye whiskeys, gins, and vodkas. The company also owns a diverse portfolio of brands through Luxco, offering products like Ezra Brooks, Rebel Bourbon, and Everclear Grain Alcohol. In addition to spirits, MGP provides specialty proteins and starches for food products through its Ingredient Solutions segment.
The hiring of Colyott is a part of MGP's ongoing strategy to strengthen its position as a branded spirits company. This announcement is based on a press release statement from MGP Ingredients.
In other recent news, MGP Ingredients has been active in strategic appointments and managing operational challenges. The company recently appointed Paul Lux as Vice President of Sales for its Distilling Solutions segment. Lux, who brings a wealth of experience from his previous roles at Meier's Beverage Group and Luxco, Inc., is expected to contribute significantly to the company's strategic initiatives.
In terms of financial performance, MGP Ingredients reported a decrease in consolidated sales and net income for the first quarter of 2024, primarily due to the closure of its Atchison distillery. The company's Q1 2024 consolidated sales fell by 15% to $170.6 million, and net income decreased by 34% to $20.6 million. Despite these setbacks, the company maintains a positive outlook for 2024, with projected sales ranging from $742 million to $756 million and adjusted EBITDA between $218 million and $222 million.
InvestingPro Insights
As MGP Ingredients, Inc. (NASDAQ:MGPI) welcomes David Colyott to the executive team, the company's operational strategy appears to be at a critical juncture. InvestingPro data and tips provide a deeper context into the company's current financial health and market performance, which may influence its strategic decisions moving forward.
InvestingPro Data shows that MGPI has a market capitalization of $1.61 billion and is trading at a P/E ratio of 16.8, reflecting investor expectations about future earnings. The company's revenue over the last twelve months as of Q1 2024 stood at $806.08 million, with a modest revenue growth of 2.28%. However, quarterly revenue growth has seen a decline of -15.15%, which could be a concern for the company's short-term performance.
From the InvestingPro Tips, it is noted that analysts have recently revised their earnings expectations downwards for the upcoming period. Additionally, they anticipate a sales decline in the current year. This information is particularly relevant as it may impact how Colyott will approach his new role in streamlining operations to potentially mitigate these challenges.
Despite these concerns, MGPI's fundamentals reveal some strengths. The company's liquid assets exceed its short-term obligations, suggesting a stable financial position in terms of liquidity. Moreover, MGPI's cash flows can sufficiently cover interest payments, providing some reassurance about the company's ability to manage its debt.
Investors considering MGPI as part of their portfolio should be aware that the company is trading near its 52-week low, which might present a potential entry point depending on their investment strategy. Furthermore, MGP Ingredients has been profitable over the last twelve months and analysts predict it will remain profitable this year.
For those looking for more detailed insights, InvestingPro offers additional tips on MGPI, which can be accessed at https://www.investing.com/pro/MGPI. Currently, there are 9 additional InvestingPro Tips available for investors seeking a comprehensive analysis. To enhance your investing toolkit, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes these valuable tips and more.
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