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MGP Ingredients Provides Certain Preliminary Third Quarter 2024 Results and Updates Full Year 2024 Guidance
Announces webcast of its third quarter earnings conference call for October 31 ATCHISON, Kan., Oct. 17, 2024 (GLOBE NEWSWIRE) -- MGP Ingredients, Inc.
About this update from Mgp Ingredients, Inc.
[{"type":"text","content":"Announces webcast of its third quarter earnings conference call for October 31\nATCHISON, Kan., Oct. 17, 2024 (GLOBE NEWSWIRE) -- MGP Ingredients, Inc. (Nasdaq: MGPI), a leading provider of branded and distilled spirits and food ingredient solutions, today announced certain preliminary financial results for the third quarter ended September 30, 2024. Based on preliminary results, for the third quarter ended September 30, 2024 compared to the 2023 third quarter: Sales are expected to decline 24% from the year-ago quarter to $161.5 million. Excluding the impact of the Atchison distillery, sales are expected to decline 14%.Distilling Solutions segment sales are expected to decline 36%, including a 22% decline in brown goods sales. Branded Spirits segment sales are expected to decline 6% with premium plus sales up 1%, while Ingredient Solutions segment sales are expected to decline 18%.Net income is expected to increase 82% to $23.9 million. Adjusted net income is expected to decline 5%. Basic earnings per common share (“EPS”) is expected to increase to $1.07 per share, while adjusted basic EPS is expected to decline 5% to $1.29. Adjusted EBITDA is expected to decline 9% to $45.7 million. Updated 2024 Financial Outlook For the full year 2024, the company now expects financial results to be below the expectations confirmed during its second quarter conference call held on August 1, 2024. The company expects full year 2024 sales to be in the range of $695 million to $705 million, adjusted EBITDA to be in the range of $196 million to $200 million, and adjusted basis EPS to be in the range of $5.55 to $5.65, as shown in the below table. Revised Fiscal 2024 Guidance Previous Fiscal 2024 GuidanceSales$695 to $705 million $742 to $756 millionAdjusted EBITDA$196 to $200 million $218 to $222 millionAdjusted basic EPS$5.55 to $5.65 $6.12 to $6.23Effective tax rate~24% ~24.5% to 25.5%Basic weighted average shares outstanding~ 22.1 million ~ 22.3 millionCapital expenditures~ $78 million ~ $85 million David Bratcher, CEO and president of MGP Ingredients, said, “We are disappointed with our third quarter results and fourth quarter outlook. Soft alcohol spirits category trends and elevated industry-wide whiskey inventories are putting greater than expected pressure on our brown goods business with a larger impact on our smaller, craft customer bas...