ATCHISON, KAN. — Net income at MGP Ingredients, Inc. increased 20% in the fiscal year ended Dec. 31, 2022, climbing to $108.59 million, equal to $4.94 per share on the common stock, up from $90.6 million, or $4.37 per share, in fiscal 2021. Net sales increased 25% to $782.36 million from $626.72 million.
During the fourth quarter, net income totaled $22.48 million, or $1.02 per share, down 29% from $31.63 million, or $1.44 per share, in the same period a year ago. The year-ago quarter included a $12.2 million tax-effected, favorable insurance recovery. Net sales were $190.99 million, up 14% from $166.85 million.
Gross profit in the Ingredient Solutions segment increased to $31.5 million in fiscal 2022 from $22.2 million in fiscal 2021, while sales increased 28% to $115.9 million, driven by higher sales of specialty wheat starches and specialty wheat proteins. During the fourth quarter, gross profit in the segment totaled $6.9 million, up from $5 million in the same period a year ago. Net sales during the quarter increased 24% to $29 million.
“The strength and value of our business model and long-term growth strategy underpinned our performance during 2022,” David J. Colo, president and chief executive officer, said during a Feb. 23 conference call with analysts. “Strong execution from the team enabled MGP to meet increased customer demand for our products and deliver another year of record results across each of our segments. During the year, we continue to experience healthy demand for new distillate and aged whiskey in our Distilling Solutions segment while also continuing to invest in marketing support and innovation to grow our American whiskey and tequila brands. Additionally, our Ingredient Solutions segment recorded another record year from a sales and gross profit perspective as consumer demand for plant-based high protein and lower net carbohydrate foods continued.”
Mr. Colo said MGPI has begun initial shipments of ProTerra seasoned crumbles that are being used as a meat alternative at colleges and universities. Additionally, construction of the company’s textured protein extrusion facility in Atchison remains on schedule with an expected startup date during the fourth quarter of 2023, he said.
“We believe that continued momentum we have realized across our specialty wheat and emerging pea-based products will enable long-term sustainable growth for the segment,” he said. “Our experienced sales, innovation and R&D teams continue to work effectively and collaboratively throughout the year to meet our customers’ needs as we accomplished these record results for the year. These achievements were supported by record production levels, a direct result of productivity improvements due to our continuous improvement initiative.”Looking ahead to fiscal 2023, Mr. Colo said MGPI expects sales to be in the range of $815 million to $835 million while adjusted EBITDA is expected to be in the range of $178 million to $183 million.