Ingredient sales slip 1.4% for MGP Ingredients

by Jeff Gelski
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ATCHISON, KAS. — Third-quarter sales dropped 1.4% in the Ingredients Solutions segment of MGP Ingredients despite a 5.4% gain in net sales for specialty wheat starches.

Ingredient Solutions’ net sales of $13,615,000 in the quarter ended Sept. 30 compared with $13,815,000 in the previous year’s third quarter. Within Ingredient Solutions, net sales of specialty wheat starches climbed to $7,523,000 from $7,137,000, but net sales in specialty wheat proteins fell 10% to $4,165,000 from $4,609,000 and net sales in commodity wheat starch dropped 11% to $1,575,000 from $1,762,000. Commodity wheat protein net sales climbed 15% to $352,000 from $307,000.

Income before income taxes was $1,002,000 in the third quarter for the Ingredients Solutions segment, which was down 7% from $1,082,000 in the previous year’s third quarter.

Gus Griffin, MGP Ingredients
Gus Griffin, president and c.e.o. of MGP Ingredients

“While segment results were down slightly for the quarter, we were pleased by both the growth in specialty starch net sales, which increased 5.4% over the 2014 quarter, and improved mix, as specialty products accounted for 85.9% of total segment net sales,” said Gus Griffin, president and chief executive officer of Atchison-based MGP Ingredients, when the company reported financial results on Nov. 5. “We remain very confident in the long-term growth potential of our Ingredient Solutions segment.”

Companywide MGP Ingredients had third-quarter net income of $6,771,000, or 38c per share on the common stock, which was up nearly 9% from $6,228,000, or 34c per share, in the previous year’s third quarter. Net sales increased 3.6% to $80,328,000 from $77,515,000.

The company’s Distillery Products segment posted third-quarter net sales of $66,713,000, a 4.7% increase from $63,700,000 in the previous year’s third quarter.

Through the first nine months of the fiscal year, MGP Ingredients had net income of $19,712,000, or $1.10 per share, which was up 21% from $16,112,000, or 89c per share, in the same time period of the previous year. Nine-month net sales were $246,095,000, up 3.8% from $237,078,000.
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