ATCHISON, Kan. - MGP Ingredients , Inc. (NASDAQ:MGPI), a leading provider of branded distilled spirits and food ingredient solutions, today reported financial results for the first quarter ended March 31, 2024.
The company posted an adjusted EPS of $1.07, surpassing the analyst estimate of $0.98. Revenue for the quarter was $170.56 million, aligning closely with the consensus estimate of $170.31 million. MGPI stock was trading up 2% Thursday morning.
Despite the closure of the Atchison distillery, MGP Ingredients managed to achieve sales figures consistent with the prior year when excluding the distillery's impact. The company experienced a 15% decrease in sales to $170.6 million compared to the same quarter last year, primarily due to the distillery closure. Gross profit also saw a decline of 10% to $62.8 million, representing 36.8% of sales.
Adjusted operating income decreased by 19% to $33.6 million, while net income fell by 34% to $20.6 million. Adjusted diluted EPS decreased to $1.07 per share from $1.39 per share in the previous year.
CEO David Bratcher commented on the results, "Given our previously communicated outlook for the first quarter of the year, we are pleased with the results and remain optimistic regarding our business throughout the remainder of the year." He highlighted the growth in sales of premium plus portfolio spirits, which increased by 12% YoY, and the progress in the Distilling Solutions business towards a long-term strategy focused on brown goods.
MGP Ingredients reiterated its full-year guidance for 2024, projecting sales to be in the range of $742 million to $756 million and adjusted EBITDA expected to be between $218 million and $222 million. Adjusted basic earnings per common share are forecasted to be in the $6.12 to $6.23 range, with basic weighted average shares outstanding expected to be approximately 22.3 million at year-end.
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