MGP INGREDIENTS INC Reports Decrease in Sales

By Chris Stiles • Wednesday, February 25 14:49 • Permanent Link

MGP INGREDIENTS INC. has recently released its 10-K report, providing a comprehensive overview of its business operations and financial performance. The company operates in three segments: Distillery Solutions, Branded Spirits, and Ingredient Solutions. The Distillery Solutions segment processes grains into food grade alcohol and distillery co-products, while the Branded Spirits segment offers a wide range of premium, mid, and value branded spirits. The Ingredient Solutions segment provides specialty wheat starches and proteins for food applications.

In its ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, MGP INGREDIENTS INC. highlighted the challenges and opportunities it faces in each segment. The Branded Spirits segment saw a 3% decrease in sales in 2025, while the Distilling Solutions segment experienced a significant 45% decrease in sales. The Ingredient Solutions segment also saw a 7% decrease in sales for the same period.

The consolidated results for 2025, 2024, and 2023 provide a clear picture of the company's financial performance. Sales decreased by 24% in 2025 compared to 2024, driven by decreased sales in each segment. Gross profit for 2025 decreased by 30% compared to 2024, primarily due to decreased gross profit in each segment. Operating loss for 2025 was $94,615, a significant decrease from operating income of $74,426 for 2024, primarily due to the goodwill and indefinite-lived intangible asset impairment related to the Branded Spirits segment recorded during the fourth quarter of 2025.

The company also reported changes in income tax expense and basic and diluted earnings per share (EPS). The income tax expense for 2025 was $7,482, resulting in an effective tax rate for the year of (7.5)%. The basic and diluted EPS for 2025 were reported as $(4.99), a significant decrease from $1.56 in 2024.

Today the company's shares have moved -4.14% to a price of $23.83. For the full picture, make sure to review MGP INGREDIENTS INC's 10-K report.

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