USA – The American MGP Ingredients, a leading supplier of premium distilled spirits and specialty wheat proteins and starcheshas reported that consolidated net sales increased 8.7% to US$88.2 million, while net income increased by 52.6% to US$12.6 million basically due to enactment of Tax Cuts and Jobs Act into law, resulting to the revaluation of the Company’s deferred income taxes.
The company recorded an increase in gross profit, gross margins and improved sales, driven by growth in premium beverage alcohol and specialty ingredients.
Improved gross profit results were contributed by strong performance in Distillery Products and Ingredients Solutions segment.
Earnings per share increased to US$0.74 per share as compared to US$2.44 per share in the year 2016 which the company said it was due to deferred tax liability revaluation benefit resulting from tax reforms.
MGP reaped well from the Distillery Products segment, which for the full year 2017, net sales increased 9.7% to US$291.0 million, primarily due to increase in net sales of premium beverage alcohol.
“We continued to see strong demand for our premium beverage alcohol products, supported by our ability to cultivate solid partnerships with existing customers as well as attract new customers.
The continued strong growth of our premium beverage alcohol business, and the resulting favorable mix shift, more than offset the continued soft pricing for our DDG co-product, and delivered both revenue and margin growth,” said August C. Griffin, president and chief executive officer.
Ingredient solutions segment sales soared 7% for the year through gains from textured wheat protein and fiber businesses in both the fourth quarter and the full year.
In 2018, the company looks forward to growing operating income to between 10% and 15%, higher net sales especially from aged whiskey as it shifts focus on sales from industrial to premium beverage alcohol.
“On the beverage side, while our core business will always be supplying other brand owners with premium distilled spirits, we are pleased with the progress of our brands initiative, both the in-market results of our brands and the growth of our organization.
Based on that, we are now expanding our brands into a few additional markets,” concluded Griffin.
MGP Ingredients Inc owns several subsidiaries that produces distillery products derived from corn & other feedstock including rye, barley, barley malt and milo; and ingredient products derived from wheat flour to serve packaged goods industry.
