Mgp Ingredients, Inc. · NASDAQ:MGPI
Mgp Ingredients — Q4 2024 Earnings Presentation
20 slides from Mgp Ingredients's earnings presentation, February 2025
Slide 1: Investor Presentation Fourth Quarter 2024
INVESTOR PRESENTATION Fourth Quarter 2024 February 2025
Slide 2: Forward Looking Statements and Non-GAAP Disclaimer
FORWARD LOOKING STATEMENTS AND NON-GAAP DISCLAIMER This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation statements regarding the impact of whiskey consumption and whiskey inventories on brand
Slide 3: Fourth Quarter and Full Year 2024 Results
FOURTH QUARTER AND FULL YEAR 2024 RESULTS FOURTH QUARTER RESULTS WERE IN LINE WITH OUR EXPECTATIONS • Consolidated sales decreased 7% to $180.8 million. Full year sales declined by 4% to $703.6 million(1) • Distilling Solutions sales declined by 6%(1) and 3%(1) for the fourth quarter and full year,
Slide 4: Fourth Quarter 2024 Sales Were in Line with Expectations
FOURTH QUARTER 2024 SALES WERE IN LINE WITH EXPECTATIONS FOURTH QUARTER SALES DECREASED BY 7%, EXCLUDING THE IMPACT OF THE ATCHISON DISTILLERY • Distilling Solutions segment(1) sales decreased 6% to Change vs Prior Year Consolidated Sales, excluding $82.0 million, driven by lower brown goods sales A
Slide 5: Gross Profit Pressured Primarily by Brown Goods
GROSS PROFIT PRESSURED PRIMARILY BY BROWN GOODS Adjusted Gross Profit(1) ($, MM Fourth Quarter 2024) Adjusted EPS(2) ($, Fourth Quarter 2024) $87.4 $1.64 $0.02 $1.57 $74.5 $0.03 ($6.8) ($2.5) ($3.6) ($0.12) Q4 2023 Distilling Solutions GP Ingredient Solutions GP Branded Spirits GP Q4 2024 Basic and
Slide 6: Distilling Solutions
DISTILLING SOLUTIONS UNFAVORABLE INDUSTRY-WIDE DYNAMICS CONTINUE TO PRESSURE BROWN GOODS BUSINESS Change vs Prior Year Distilling Solutions (excluding Atchison distillery) (Quarter ended 12/31/2024) $MM $MM % Change Brown goods $67.0 $(7.3) (10)% Warehouse services 8.8 1.1 15 White goods and other c
Slide 7: Branded Spirits
BRANDED SPIRITS QUARTERLY PREMIUM PLUS SALES PRIMARILY REFLECT LAPPING STRONG GROWTH IN THE YEAR-AGO PERIOD Change vs Prior Year Branded Spirits (Quarter ended 12/31/2024) $MM $MM % Premium plus $28.3 $(3.8) (12)% Mid 16.8 (3.3) (16) Value 10.4 (1.5) (12) Other 8.5 (0.1) (1) Sales $64.0 $(8.6) (12)%
Slide 8: Ingredient Solutions
INGREDIENT SOLUTIONS RETURN TO POSITIVE SALES GROWTH AS SPECIALTY PROTEIN SALES REBOUND Change vs Prior Year Ingredient Solutions (excluding Atchison distillery) (Quarter ended 12/31/2024) $MM $MM % Specialty wheat starches $18.4 $1.3 8% Specialty wheat proteins 12.8 0.5 4 Commodity wheat starches 3
Slide 9: 2025 Financial Guidance
2025 FINANCIAL GUIDANCE Full Year 2025 Guidance1 Sales $520 million to $540 million Adjusted EBITDA $105 million to $115 million Adjusted basic EPS $2.45 to $2.75 Effective tax rate ~ 25% Basic weighted average shares outstanding ~ 21.3 million Capital expenditures ~ $36 million 1 Guidance is as of
Slide 10: Strong Balance Sheet with Excellent Access to Capital
STRONG BALANCE SHEET WITH EXCELLENT ACCESS TO CAPITAL • Balance sheet remains healthy, and we remain Net Leverage Ratio well capitalized with debt totaling $324 million 1.5x 1.5x and a cash position of $25 million(1) 1.3x • Excellent access to capital with total availability 1.0x of $522 million und
Slide 11: Our Premium Plus Brands Are Gaining Traction
OUR PREMIUM PLUS BRANDS ARE GAINING TRACTION Continued Momentum in El Mayor® Growing Ahead of Penelope® Bourbon the Tequila Category +65% +20% YoY Sales Growth1 YoY Sales Growth2 Penelope’s Innovation Shows Untapped Potential Upcoming Packaging Redesign Expected to Drive Greater 20 Shelf Presence Ne
Slide 12: Appendix
MGP APPENDIX
Slide 13: Reconciliation of Selected GAAP to Non-GAAP Measures
RECONCILIATION OF SELECTED GAAP TO NON-GAAP MEASURES NET INCOME TO ADJUSTED EBITDA AND NET DEBT LEVERAGE RATIO ($ in thousands) 2019 2020 2021 2022 2023 2024 Net Income $38,793 $40,345 $90,817 $108,872 $107,130 $34,465 Interest 1,305 2,267 4,037 5,451 6,647 8,439 Taxes 7,144 12,256 30,279 31,300 34,
Slide 14: Reconciliation of Selected GAAP to Non-GAAP Measures
RECONCILIATION OF SELECTED GAAP TO NON-GAAP MEASURES FOR THE QUARTERS ENDED DECEMBER 31, 2024 AND 2023 Basic and Diluted Quarter Ended December 31, 2024 (in thousands) Operating Income Net Income EPS Reported GAAP Results $(30,442) $(41,998) $(1.91) Goodwill impairment 73,755 73,755 3.36 Fair value
Slide 15: Reconciliation of Selected GAAP to Non-GAAP Measures
RECONCILIATION OF SELECTED GAAP TO NON-GAAP MEASURES RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA Quarter Ended Quarter Ended ($ in thousands) 12/31/2024 12/31/2023 Net income (loss) $(41,998) $31,046 Interest expense 2,041 2,017 Income tax expense 10,053 9,784 Depreciation and amortization 5,691
Slide 16: Description of Non-GAAP Items
DESCRIPTION OF NON-GAAP ITEMS • Excluding the impacts of the nondeductible goodwill impairment, the effective tax rate was 24.0% and 23.9% for the quarter and year ended December 31, 2024, respectively. This is the effective tax rate used for the non-GAAP items • Goodwill impairment relates to the w
Slide 17: Quarterly GAAP Results
QUARTERLY GAAP RESULTS Consolidated Sales Change vs Prior Year (Quarter Ended 12/31/2024) $MM $MM % Distilling Solutions $82.1 $(26.9) (25)% Branded Spirits 64.0 (8.6) (12) Ingredient Solutions 34.8 1.4 4 MGP Ingredients $180.8 $(34.1) (16)% Gross Profit Drivers EPS Drivers1 Fourth Quarter 2023-24 (
Slide 18: Impact of the Closure of the Atchison Distillery
IMPACT OF THE CLOSURE OF THE ATCHISON DISTILLERY UNAUDITED PRO-FORMA RESULTS – CONSOLIDATED (1) Represents actual results of the Company for the quarter Change ended December 31, 2024. Quarter Ended 12/31/2024 (2) Represents actual results of the Company for the quarter (in thousands) As Reported(1)
Slide 19: Impact of the Closure of the Atchison Distillery
IMPACT OF THE CLOSURE OF THE ATCHISON DISTILLERY UNAUDITED PRO-FORMA RESULTS – DISTILLING SOLUTIONS Change (1) Represents actual results of the Company for the quarter Quarter Ended December 31, 2024 ended December 31, 2024. (in thousands) As Reported(1) Pro-Forma(3) $ % (2) Represents actual result
Slide 20: Impact of the Closure of the Atchison Distillery
IMPACT OF THE CLOSURE OF THE ATCHISON DISTILLERY UNAUDITED PRO-FORMA RESULTS – INGREDIENT SOLUTIONS Change (1) Represents actual results of the Company for the quarter ended December 31, 2024. Quarter Ended 12/31/2024 (in thousands) As Reported(1) Pro-Forma(3) $ % (2) Represents actual results of th