ATCHISON, KANSAS, U.S. — Net income at MGP Ingredients, Inc. in the third quarter ended Sept. 30 totaled $9.238 million, equal to 55¢ per share on the common stock, up 41% from $6.549 million, or 38¢ per share, in the same period a year ago.
Sales were virtually unchanged, easing slightly to $79.891 million from $80.328 million in the same period a year ago.
“We are pleased with the third-quarter results,” said Gus Griffin, president and chief executive officer of MGPI. “Our focus continues to be on implementation of our long-term strategic plan and this performance reflects our continued progress against that plan.”
During the third quarter, gross profit in the company’s Ingredient Solutions segment increased to $2.8 million, up 87% from $1.5 million a year ago. Net sales for the segment fell 2.8% to $13.2 million.
“Our Ingredient Solutions segment showed solid improvement,” Griffin said. “We expect pricing headwinds to continue as we work to strengthen our position against long-term macro consumer trends.”
For the first nine months of fiscal 2016, net income was $22.188 million, or $1.33 per share, up 16% from $19.059 million, or $1.10 per share, in the same period a year ago. Sales fell 4% to $237.118 million from $246.095 million. MGPI has revised its 2016 net sales percentage growth projection downward to reflect year-to-date sales declines.
Operating income is expected to increase by a compound annual growth rate in the 10% to 15% range through fiscal 2018, MGPI said, while 2016 net sales are expected to decline in the low-single digits on a percentage basis.
“While we may experience continued volatility in our quarterly results, we remain focused on our long-term strategy,” Griffin said.