MGP Ingredients Reports 29% Decrease in Q1 Sales

By Tamara Parker • Thursday, May 01 10:15 • Permanent Link

MGP Ingredients, Inc. (NASDAQ: MGPI) has reported its first-quarter results for 2025, citing a 29% decrease in consolidated sales to $121.7 million compared to the same period in 2024. The company also reported a 31% decrease in consolidated gross profit to $43.3 million, with a gross margin decrease of 120 basis points to 35.6%.

Net income decreased 115% to a loss of $3.1 million, primarily due to the change in fair value of the contingent consideration liability related to the improved performance of the Penelope brand. On an adjusted basis, net income decreased 68% to $7.8 million.

Basic earnings per common share (EPS) decreased to $(0.14) per share from $0.92 per share, and adjusted basic EPS decreased 66% to $0.36 per share.

Adjusted EBITDA decreased 46% to $21.8 million, and capital expenditures declined 38% to $8.1 million in the first quarter. Operating cash flows increased by $20.1 million to $44.7 million, and the net debt leverage ratio stands at approximately 1.6x as of March 31, 2025.

The company successfully upsized its credit facility from $400 million to $500 million on April 24, 2025, and extended its maturity to 2030, further enhancing liquidity and financial flexibility.

In terms of segment performance, the branded spirits segment sales decreased 4% to $48.2 million, while the distilling solutions segment sales and gross profit decreased by 45% to $46.9 million and $18.7 million, respectively. The ingredient solutions segment sales decreased 26% to $26.5 million.

Looking ahead, MGP Ingredients reaffirmed its consolidated guidance for fiscal 2025 with projected sales in the range of $520 million to $540 million and adjusted EBITDA expected to be in the range of $105 million to $115 million. Adjusted basic EPS is expected to be in the $2.45 to $2.75 range, with weighted average basic shares outstanding of approximately 21.3 million and an effective tax rate of approximately 25%. Full-year capital expenditures are expected to be approximately $36 million.

MGP Ingredients will host a conference call to discuss these results and current business trends on May 1, 2025, at 10 a.m. ET, with a live webcast available on the company’s investor relations website. The market has reacted to these announcements by moving the company's shares 6.9% to a price of $31.51. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.