ATCHISON, KAS. — A shift in product mix coupled with a heightened focus on higher value products paved the way to a positive quarter at MGP Ingredients, Inc.
Net income at MGPI in the second quarter ended June 30 was $7,871,000, equal to 44c per share on the common stock, up 54% from $5,099,000, or 28c per share, in the same period a year ago. Gross profit for the quarter more than doubled, increasing to $17,528,000 from $8,308,000, while operating income tripled to $9,503,000 from $3,072,000. Sales rose 7% to $92,071,000 from $85,903,000.
“We continue to be very pleased with our results through the first half of 2015 as we aggressively implement our strategic plan,” said Gus Griffin, president and chief executive officer of MGPI. “Our second-quarter and year-to-date performance demonstrate continued progress in shifting our product mix and driving growth in our higher value products.”
Operating profit within the Ingredient Solutions segment was $3.9 million, up from $1.9 million in the same period a year ago. Net sales to customers increased 8% to $16.4 million.
“Our portfolio of specialty wheat proteins and starches is well positioned to benefit from long-term macro health trends, such as high fiber, high protein and non-G.M.O.,” Mr. Griffin said. “Additionally, due to the avian influenza crisis, we are seeing strong interest in our egg white replacement solutions.”
Operating profit within the Distillery Products segment was $13.6 million, up from $6.4 million a year ago. Sales increased 5% to $68.9 million.
Mr. Griffin said MGPI is making “better-than-expected progress” in implementing its new growth initiatives.
“Our progress in focusing on our higher value products is evident in the exceptional gross profit growth in both our business segments,” he said.For the first half ended June 30, net income was $12,941,000, or 72c per share, up 31% from $9,884,000, or 55c per share, in the same period a year ago. Sales increased 4% to $176,935,000 from $170,485,000.