MGP Ingredients earnings rise in fiscal 2016

by Eric Schroeder
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ATCHISON, KANSAS, U.S. — Net income at MGP Ingredients, Inc. increased 19% in the fiscal year ended Dec. 31, 2016, climbing to $30.23 million, equal to $1.82 per share on the common stock, from $25.32 million, or $1.48 per share, in fiscal 2015. Net sales for the full year, meanwhile, fell 3% to $318.26 million from $327.6 million.

During the fourth quarter, net income totaled $8.29 million, or 48¢ per share, up 28% from $6.27 million, or 38¢ per share, in the same period a year ago. Net sales were $81.15 million, down narrowly from $81.51 million.

MGPI Gus Griffin CEO
Gus Griffin, president and chief executive officer of MGPI. 

“Our fourth quarter and fiscal 2016 results mark further progress against our long-term strategic plan,” said Gus Griffin, president and chief executive officer of MGPI. “While revenues declined slightly as we continue to migrate away from industrial alcohol, gross profit and margins expanded and operating income improved in both our Distillery Products and Ingredient Solutions segments.  We are pleased with the progress against our goals for the year and enter 2017 strongly positioned for growth.”

Gross profit in the Ingredient Solutions segment increased to $8.4 million in fiscal 2016, up from $7.9 million in fiscal 2015, while sales fell nearly 8% to $53 million. During the fourth quarter, gross profit in the segment totaled $1.6 million, up from $600,000 in the same period a year ago. Net sales during the quarter increased 2.5% to $13.1 million.

“Our Ingredient Solutions segment returned to modest growth in the fourth quarter as sales gains in specialty wheat starch more than offset sales declines in commodity wheat starch and proteins versus the prior year period,” Griffin said. “We continue our work to take full advantage of the macro trends benefitting this segment.”