ATCHISON, KAN. — Net income at MGP Ingredients, Inc. increased 126% in the fiscal year ended Dec. 31, 2021, climbing to $90.6 million, equal to $4.37 per share on the common stock, up from $40.08 million, or $2.37 per share, in fiscal 2020. Net sales increased 58% to $626.72 million from $395.52 million.
During the fourth quarter, net income totaled $31.63 million, or $1.44 per share, up 173% from $11.56 million, or 69¢ per share, in the same period a year ago. Net sales were $166.85 million, up 65% from $100.92 million.
Gross profit in the Ingredient Solutions segment increased to $22.2 million in fiscal 2021 from $20.8 million in fiscal 2020, while sales increased 16% to $90.7 million, driven by higher sales of specialty wheat starches and specialty wheat proteins. During the fourth quarter, gross profit in the segment totaled $5 million, down from $5.3 million in the same period a year ago. Net sales during the quarter increased 15% to $23.4 million.
“By all accounts, 2021 represented a remarkable year for our company,” David J. Colo, president and chief executive officer, said during a Feb. 24 conference call with analysts. “As we executed against our strategy, the strength and value of our business model were on full display, improved effectiveness in our tactical execution allowed MGP to deliver our most profitable year in company history. The determination and continued focus from our team to meet increased customer demand for our products, while achieving strong financial performance resulted in record results across each of our segments this year. We are also very pleased with the continued success of the integration efforts of the Luxco acquisition achieved by the organization.”
Brandon M. Gall, vice president of finance and chief financial officer, noted during the call that MGPI experienced a reduction in gross margins in the fourth quarter in the Ingredient Solutions segment related to planned maintenance and repairs that are not expected to recur in future periods.
“So with that dynamic in Q4, and then we also had a disruption in Q1, those two quarters together did bring down the full-year margin profile for Ingredient Solutions,” Mr. Gall said. “However, our view is that Q2 and Q3 of this year, which is mid-to-upper 20% gross margins, is more in line with the long-run capability of this segment.”Looking ahead to fiscal 2022, Mr. Colo said MGPI expects sales to be in the range of $690 million to $715 million, which would be up about 10% to 14% from fiscal 2021. Adjusted EBITDA is expected to be in the range of $150 million to $157 million, which would be up approximately 6% to 11%.