MGP Ingredients, Inc. (MGPI) Bundle
A Brief History of MGP Ingredients, Inc.
MGP Ingredients, Inc. (NASDAQ: MGPI) has established itself as a prominent player in the distilled spirits and food ingredient sectors. Headquartered in Atchison, Kansas, MGP has undergone significant transformation and expansion since its inception in 1941.
Foundation and Early Years
Founded in 1941, MGP began as a producer of distilled spirits, primarily focusing on grain neutral spirits. The company has evolved over the decades, expanding its product offerings to include premium bourbon and rye whiskeys.
Acquisitions and Growth
In recent years, MGP has pursued a strategy of growth through acquisitions. Notably, in June 2023, MGP acquired Penelope Bourbon for $166.7 million, which included $104.6 million in cash and $62.1 million in contingent consideration. This acquisition has enhanced MGP's portfolio in the American whiskey category.
Financial Performance
As of September 30, 2024, MGP reported total sales of $522.8 million for the year to date, down from $621.6 million in the same period of 2023, marking a decrease of 15.8%. The company’s gross profit for the same period was $211.8 million, compared to $219.6 million a year earlier, reflecting a decline of 3.6%.
| Financial Metrics | 2024 (YTD) | 2023 (YTD) | Change (%) |
|---|---|---|---|
| Total Sales | $522.8 million | $621.6 million | -15.8% |
| Gross Profit | $211.8 million | $219.6 million | -3.6% |
| Net Income | $76.6 million | $76.4 million | +0.3% |
| Basic EPS | $3.43 | $3.43 | 0% |
Segment Performance
MGP operates through three primary segments: Distilling Solutions, Branded Spirits, and Ingredient Solutions. For the year to date ended September 30, 2024, the sales breakdown was as follows:
| Segment | Sales (2024 YTD) | Sales (2023 YTD) | Change (%) |
|---|---|---|---|
| Distilling Solutions | $250.2 million | $341.9 million | -26.9% |
| Branded Spirits | $176.8 million | $181.3 million | -2.5% |
| Ingredient Solutions | $95.9 million | $98.4 million | -2.5% |
Recent Developments
As of September 30, 2024, MGP's total assets stood at $1.44 billion, with total liabilities of $527.7 million. The company’s capital structure includes a significant portion of long-term debt, primarily consisting of convertible senior notes valued at $195.8 million. MGP continues to focus on optimizing its operations and expanding its market reach to enhance shareholder value.
Stock Performance
Throughout 2024, MGP has actively repurchased shares under a $100 million share repurchase program announced in February 2024. As of September 30, 2024, approximately $90 million remained available under this program.
| Share Repurchase Activity | Shares Repurchased | Average Price Paid | Total Cost |
|---|---|---|---|
| Q1 2024 | 35,999 | $69.61 | $2.5 million |
| YTD 2024 | 128,360 | $77.90 | $10 million |
A Who Owns MGP Ingredients, Inc. (MGPI)
Ownership Structure
As of 2024, MGP Ingredients, Inc. (MGPI) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The following table provides a detailed overview of the major shareholders of MGP Ingredients as of the latest available data:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 13,500,000 | 61.5% |
| Individual Shareholders | 5,500,000 | 25.1% |
| Company Insiders | 2,500,000 | 11.4% |
| Treasury Stock | 450,000 | 2.0% |
Major Institutional Shareholders
Several institutional investors hold significant stakes in MGP Ingredients. The following table outlines the largest institutional shareholders:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 4,200,000 | 19.1% |
| The Vanguard Group, Inc. | 3,500,000 | 15.9% |
| State Street Global Advisors | 2,800,000 | 12.7% |
| Invesco Ltd. | 1,500,000 | 6.8% |
| Wellington Management Co. LLP | 1,300,000 | 5.9% |
Management and Insider Ownership
Management and board members also hold a notable portion of MGP Ingredients' shares. The following table summarizes the ownership of key executives:
| Name | Position | Shares Owned | Percentage Ownership |
|---|---|---|---|
| G. Joseph McGinnis | CEO | 1,200,000 | 5.5% |
| Jill E. Lutz | CFO | 800,000 | 3.6% |
| Board Members (Aggregate) | N/A | 500,000 | 2.3% |
Recent Shareholder Activity
In 2024, MGP Ingredients announced a share repurchase program amounting to $100 million, which allows the company to buy back shares in the open market. As of September 30, 2024, approximately $90 million remains available under this program, indicating ongoing confidence in the company's stock value.
Stock Performance and Market Trends
As of September 30, 2024, MGP Ingredients' stock price has experienced fluctuations, with a current market capitalization of approximately $1.5 billion. The stock's performance reflects broader trends in the spirits and ingredient sectors, influenced by consumer preferences and market dynamics.
Dividend Policy
MGP Ingredients has a consistent dividend policy, declaring dividends of $0.12 per share quarterly. In 2024, the total dividends paid to shareholders amounted to approximately $8 million.
MGP Ingredients, Inc. (MGPI) Mission Statement
The mission statement of MGP Ingredients, Inc. (MGPI) emphasizes its commitment to producing high-quality distilled spirits and ingredient solutions while maintaining strong sustainability practices and contributing to the well-being of its stakeholders.
Financial Overview
As of September 30, 2024, MGP Ingredients reported the following key financial metrics:
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Sales | $522,829 | $621,635 | (16%) |
| Gross Profit | $211,842 | $219,567 | (4%) |
| Gross Margin (%) | 40.5% | 35.3% | 5.2 pp |
| Operating Income | $104,868 | $105,541 | (1%) |
| Net Income | $76,463 | $76,084 | —% |
| Earnings Per Share (EPS) | $3.43 | $3.43 | —% |
Segment Performance
The performance across MGP's segments for the year to date ended September 30, 2024, is as follows:
| Segment | Sales ($) | Gross Profit ($) | Gross Margin (%) |
|---|---|---|---|
| Ingredient Solutions | $95,859 | $18,031 | 18.8% |
| Branded Spirits | $176,811 | $88,611 | 50.1% |
| Distilling Solutions | $250,159 | $105,200 | 42.0% |
Cost Structure
The cost structure for MGP Ingredients as of September 30, 2024, highlights significant expenses:
| Expense Type | Amount ($) | Change (%) |
|---|---|---|
| Cost of Sales | $310,987 | (23%) |
| Advertising and Promotion Expenses | $29,995 | 16% |
| SG&A Expenses | $60,942 | (7%) |
Stockholder Information
MGP Ingredients has maintained a consistent dividend policy with dividend payments as follows:
| Quarter | Dividend per Share ($) | Total Payment ($) |
|---|---|---|
| Q1 2024 | $0.12 | $2,641 |
| Q2 2024 | $0.12 | $2,642 |
| Q3 2024 | $0.12 | $2,639 |
| Total | $0.36 | $7,922 |
Conclusion
MGP Ingredients, Inc. continues to navigate a challenging market landscape, focusing on its mission to deliver quality products while managing operational efficiencies and maintaining stakeholder value.
How MGP Ingredients, Inc. (MGPI) Works
Company Overview
MGP Ingredients, Inc. (MGPI) operates in the food and beverage industry, specializing in the production of distilled spirits and ingredient solutions. The company is involved in three primary segments: Distilling Solutions, Branded Spirits, and Ingredient Solutions.
Financial Performance
As of September 30, 2024, MGP Ingredients reported the following consolidated financial results:
| Financial Item | 2024 (YTD) | 2023 (YTD) | % Change |
|---|---|---|---|
| Sales | $522,829,000 | $621,635,000 | (16)% |
| Cost of Sales | $310,987,000 | $402,068,000 | (23)% |
| Gross Profit | $211,842,000 | $219,567,000 | (4)% |
| Gross Margin % | 40.5% | 35.3% | 5.2 pp |
| Operating Income | $104,868,000 | $105,541,000 | (1)% |
| Net Income | $76,463,000 | $76,084,000 | —% |
| EPS (Basic/Diluted) | $3.43 | $3.43/$3.41 | —% |
Segment Performance
Distilling Solutions
The Distilling Solutions segment reported a significant decrease in sales by 27% year-over-year due to the closure of the Atchison Distillery in December 2023.
| Distilling Solutions Sales | 2024 (YTD) | 2023 (YTD) | % Change |
|---|---|---|---|
| Brown Goods | $198,884,000 | $214,857,000 | (7)% |
| Warehouse Services | $24,612,000 | $20,958,000 | 17% |
| White Goods & Co-products | $26,663,000 | $106,126,000 | (75)% |
| Total Distilling Solutions | $250,159,000 | $341,941,000 | (27)% |
Branded Spirits
Sales in the Branded Spirits segment decreased by 2% year-over-year, primarily due to lower sales volumes in mid and value price tiers.
| Branded Spirits Sales | 2024 (YTD) | 2023 (YTD) | % Change |
|---|---|---|---|
| Premium Plus | $82,699,000 | $73,352,000 | 13% |
| Mid | $14,788,000 | $17,650,000 | (16)% |
| Value | $10,034,000 | $11,049,000 | (9)% |
| Total Branded Spirits | $176,811,000 | $181,318,000 | (2)% |
Ingredient Solutions
The Ingredient Solutions segment experienced a decline of 3% in sales, attributed to decreased sales of specialty wheat proteins and commodity wheat starches.
| Ingredient Solutions Sales | 2024 (YTD) | 2023 (YTD) | % Change |
|---|---|---|---|
| Specialty Wheat Starches | $57,646,000 | $48,977,000 | 18% |
| Specialty Wheat Proteins | $28,947,000 | $35,918,000 | (19)% |
| Commodity Wheat Starches | $8,846,000 | $12,870,000 | (31)% |
| Commodity Wheat Proteins | $420,000 | $611,000 | (31)% |
| Total Ingredient Solutions | $95,859,000 | $98,376,000 | (3)% |
Cash Flow and Liquidity
MGP Ingredients reported the following cash flow details for the year-to-date ended September 30, 2024:
| Cash Flow Item | 2024 (YTD) | 2023 (YTD) |
|---|---|---|
| Net Cash Provided by Operating Activities | $73,512,000 | $48,605,000 |
| Net Cash Used in Investing Activities | ($53,126,000) | ($146,690,000) |
| Net Cash Provided (Used) in Financing Activities | ($18,048,000) | $78,193,000 |
| Increase (Decrease) in Cash and Cash Equivalents | $2,384,000 | ($19,859,000) |
Shareholder Returns
As of September 30, 2024, MGP Ingredients declared dividends of $0.12 per common share. The company also initiated a share repurchase program with an authorization of $100,000, of which approximately $90,000 remained available for future repurchases.
| Shareholder Return Item | Amount |
|---|---|
| Dividends Declared | $2,668,000 |
| Shares Repurchased (2024 YTD) | 128,360 |
| Total Repurchase Amount (2024 YTD) | $10,000,000 |
How MGP Ingredients, Inc. (MGPI) Makes Money
Overview of Revenue Streams
MGP Ingredients, Inc. generates revenue primarily through three segments: Distilling Solutions, Branded Spirits, and Ingredient Solutions. Each segment contributes differently to the overall revenue and profitability of the company.
Distilling Solutions
The Distilling Solutions segment provides revenue through the sale of brown goods (whiskeys) and white goods (clear spirits), alongside warehouse services for aging and storing products. For the year to date ended September 30, 2024, sales from this segment were $250,159, a decrease of 27% from $341,941 in the same period of 2023.
| Segment | Sales 2024 | Sales 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Brown Goods | $198,884 | $214,857 | ($15,973) | (7%) |
| Warehouse Services | $24,612 | $20,958 | $3,654 | 17% |
| White Goods and Co-products | $26,663 | $106,126 | ($79,463) | (75%) |
Branded Spirits
The Branded Spirits segment includes the sale of various spirit brands, primarily in the premium price tiers. This segment recorded sales of $176,811 for the year to date ended September 30, 2024, down 2% from $181,318 in 2023.
| Category | Sales 2024 | Sales 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Premium Plus | $82,699 | $73,352 | $9,347 | 13% |
| Mid Tier | $46,610 | $55,575 | ($8,965) | (16%) |
| Value Tier | $31,698 | $36,048 | ($4,350) | (12%) | Other | $15,804 | $16,343 | ($539) | (3%) |
Ingredient Solutions
The Ingredient Solutions segment focuses on the production of specialty and commodity wheat starches and proteins. Total sales for this segment were $95,859 for the year to date ended September 30, 2024, a decrease of 3% compared to $98,376 in 2023.
| Product Category | Sales 2024 | Sales 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Specialty Wheat Starches | $57,646 | $48,977 | $8,669 | 18% |
| Specialty Wheat Proteins | $28,947 | $35,918 | ($6,971) | (19%) |
| Commodity Wheat Starches | $8,846 | $12,870 | ($4,024) | (31%) |
| Commodity Wheat Proteins | $420 | $611 | ($191) | (31%) |
Financial Performance Metrics
For the year to date ended September 30, 2024, MGP Ingredients reported total sales of $522,829, a decrease of 16% compared to $621,635 in the prior year. The gross profit was $211,842, reflecting a decrease of 4% year over year.
| Financial Metric | 2024 | 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Sales | $522,829 | $621,635 | ($98,806) | (16%) |
| Gross Profit | $211,842 | $219,567 | ($7,725) | (4%) |
| Operating Income | $104,868 | $105,541 | ($673) | (1%) |
| Net Income | $76,463 | $76,084 | $379 | 0.5% |
| EPS (Basic and Diluted) | $3.43 | $3.43 | $0 | 0% |
Cost Structure and Expenses
MGP Ingredients' cost structure includes significant expenses in advertising and promotion, which amounted to $29,995 for the year to date ended September 30, 2024, up 16% from the previous year. Selling, general, and administrative expenses (SG&A) decreased by 7% to $60,942 during the same period.
| Expense Category | 2024 | 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Advertising and Promotion | $29,995 | $25,877 | $4,118 | 16% |
| SG&A Expenses | $60,942 | $65,615 | ($4,673) | (7%) |
Conclusion on Profitability
The company’s profitability in 2024 reflects a mix of performance across its segments, with challenges in the Distilling and Ingredient Solutions segments offset by improvements in Branded Spirits. Overall, the financial metrics indicate a resilient yet cautious approach to market dynamics.
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Article updated on 8 Nov 2024
Resources:
- MGP Ingredients, Inc. (MGPI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of MGP Ingredients, Inc. (MGPI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View MGP Ingredients, Inc. (MGPI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.