NASDAQ$MGPI

MGP Ingredients Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

MGP Ingredients reported record second quarter results, with increased sales and profitability.

MGP Ingredients reported a 7% increase in sales to $209.0 million and a 26% increase in net income. The company's performance was driven by strong demand for brown goods and the acquisition of Penelope Bourbon. The Ingredient Solutions business also generated record sales.

  • Consolidated sales increased 7% to a quarterly record of $209.0 million.
  • Net income and adjusted EBITDA increased 26% and 28%, respectively.
  • Sales of brown goods grew 30% from the prior year period.
  • Branded Spirits segment completed the acquisition of Penelope Bourbon in June, further strengthening portfolio of premium plus brands, which grew 29% in sales from the prior year period.

Headline financials

Total Revenue

$209M

Previous: $195M+7.2%
EPS (adj)

$1.49

Previous: $1.15+29.6%
Adjusted EBITDA

$51.2M

Previous: $40.1M+27.7%
Ad & Promotion Expenses

$8.6M

No prior period
Capital Expenditures

-$30.1M

Previous: -$18.1M-66.2%
Free Cash Flow

$2.07M

Previous: $7.47M-72.3%
Net Income

$32.1M

Previous: $25.6M+25.7%
Operating Income

$44.1M

Previous: $35.3M+25.0%
Gross Profit

$76.3M

Previous: $59.2M+28.8%
Cash & Equivalents

$22M

Previous: $37.4M-41.3%
Total Assets

$1.4B

Previous: $1.11B+26.1%
Stock-Based Comp

$2.42M

Previous: $758K+219.5%

Revenue & EPS history

MGP Ingredients · Revenue · Quarterly

$209M

Q2 2023+7.2%vs Q2 2022
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

MGP Ingredients · $209M total across 3 segments · Q2 2023

  • Distilling Solutions
    $117M+9.2%
  • Branded Spirits
    $57.6M-1.7%
  • Ingredient Solutions
    $34.5M+17.7%

Forward guidance

MGP is offering the following revised consolidated guidance for fiscal 2023:

Tailwinds

  • Sales are projected to be in the range of $815 million to $835 million.
  • Adjusted EBITDA is expected to be in the range of $187 million to $192 million.
  • Adjusted basic EPS is forecasted to be in the $5.35 to $5.50 range.
  • Basic weighted average shares outstanding expected to be approximately 22.1 million at year end.
  • Projected sales growth indicates continued strong demand for MGP Ingredients' products.

Headwinds

  • The guidance is based on current market conditions and expectations, which are subject to change.
  • Unforeseen events or circumstances could negatively impact the company's ability to achieve its projected results.
  • Fluctuations in commodity prices or supply chain disruptions could affect profitability.
  • Changes in consumer preferences or economic conditions could impact sales.
  • Increased competition or regulatory changes could also pose challenges to the company's performance.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.7%

Avg return

Earnings day

-1.1%

Avg return

5 days after

-0.5%

Avg return

30 days after

58%

36 / 62 earnings

Positive

+15.7%

Q3 2017

Best reaction

-21.4%

Q1 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.2%-5.8%-12.8%
Q4 2025-21.2%-25.7%-27.9%
Q3 2025-1.9%+0.6%-7.6%
Q1 2025+4.8%+9.0%-0.2%
Q4 2024-1.1%-0.4%-10.3%
Q3 2024-19.2%-16.6%-17.8%
Q2 2024+4.4%+0.7%+9.9%
Q1 2024+3.0%+3.3%-0.8%
Q4 2023-13.2%-14.4%-9.3%
Q3 2023+2.2%+3.4%-5.6%
Q2 2023+6.6%+8.0%+5.6%
Q1 2023+6.2%+3.8%+5.6%
Q4 2022+8.4%+5.5%-1.8%
Q3 2022+5.2%+7.9%+17.2%
Q2 2022+6.9%+5.0%+3.6%
Q1 2022+0.3%-1.6%+2.4%
Q4 2021+2.0%+2.3%+11.8%
Q3 2021+10.2%+8.3%+23.8%
Q2 2021+14.6%+14.8%+16.1%
Q1 2021+1.7%+4.9%+20.2%
Q4 2020-8.0%-7.0%-12.2%
Q3 2020+4.6%+0.7%+10.2%
Q2 2020-6.5%-6.6%-6.5%
Q1 2020-6.8%-9.4%-8.5%
Q4 2019-10.4%-5.9%-16.1%
Q3 2019-4.9%-6.0%-5.9%
Q2 2019-18.6%-18.6%-28.3%
Q1 2019-21.4%-19.0%-31.5%
Q4 2018+5.3%+5.0%-0.8%
Q3 2018-8.1%-3.5%-4.5%
Q2 2018-5.6%-4.7%-4.4%
Q1 2018-10.2%-4.8%-5.4%
Q4 2017-1.4%-9.5%+6.8%
Q3 2017+15.7%+17.8%+19.0%
Q2 2017+2.9%+2.0%+0.8%
Q1 2017+5.5%+3.2%-2.3%
Q4 2016+10.3%+14.1%+17.9%
Q3 2016+12.6%+14.8%+36.4%
Q2 2016-19.1%-19.9%-4.4%
Q1 2016+0.7%
Q4 2015-17.2%
Q3 2015+1.3%
Q2 2015+10.4%
Q1 2015+2.5%
Q4 2014+0.4%
Q3 2014-3.8%
Q2 2014+8.6%
Q1 2014+2.9%
Q4 2013+1.2%
Q3 2013-4.3%
Q2 2013+5.0%
Q1 2013-2.3%
Q4 2012-4.6%
Q3 2012+2.0%
Q2 2012+6.7%
Q3 2011-0.5%
Q4 2009+2.8%
Q4 2011+2.8%
Q4 2010+2.8%
Q1 2012+2.0%
Q1 2011-8.2%
Q1 2010-7.7%

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