MGP reports 16% decline in sales fourth-quarter FY 2024
USA – MGP Ingredients Inc., a leading producer of premium branded and distilled spirits and food ingredient solutions, has reported a 16% decrease in sales to US$180.8 million in the Q4 and US$703.6 million full year 2024.
In Q4, the company’s consolidated gross profit decreased by 13% to US$74.5 million, while the gross profit margin increased by 160 basis points to 41.2% compared with the 2023 results.
Excluding the impact of the Atchison distillery, gross profit declined by 15%, and gross margin decreased 400 basis points to 41.2%.
The net income declined to a loss of US$42.0 million due to a one-time, non-cash adjustment of US$73.8 million to lower the carrying amount of goodwill in the Branded Spirits segment. On an adjusted basis, net income decreased 6% to US$34.4 million.
In the full-year report, gross profit decreased by 6.0% to US$286.3 million, and gross profit margin increased by 430 basis points to 40.7%. Excluding the impact of the Atchison distillery, gross profit declined by 7%, while gross profit margin decreased 170 basis points to 40.8%.
Net income decreased by 68% to US$34.5 million, primarily due to a one-time, non-cash adjustment to goodwill. Net income decreased by 4% to US$125.3 million on an adjusted basis.
Basic EPS decreased to US$1.56 per share from US$4.82 per share primarily due to a one-time, non-cash adjustment to goodwill.
Adjusted EBITDA decreased 6% to US$196.5 million. Depreciation and amortization remained largely flat at US$22.0 million, while share-based compensation expense declined by 57% to US$3.2 million.
Ingredients
Segment sales increased by 4% to US$34.7 million for the fourth quarter of 2024. The specialty protein sales posted their first quarterly growth of the year. The gross profit was US$8.2 million, and the gross margin was 23.5%.
Sales decreased by 1% to US$130.6 for the full year of 2024. Excluding the impact of the Atchison distillery, the segment gross profit was US$26.2 million, and the gross margin of 20.1% in 2024 declined from US$40.5 million and 30.8% in 2023.
Brandon Gall, Interim President, CEO, and CFO, said, “Despite ongoing industry-wide challenges, our fourth quarter results were in line with our expectations. The sequential improvement in Ingredient Solutions sales and gross margin reinforces our belief that our specialty wheat ingredients platform is structurally positioned to win in the faster-growing ‘healthier for me’ food segments.”
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