ATCHISON, KAN. — Net income at MGP Ingredients, Inc. increased 25% in the second quarter ended June 30, climbing to $31.8 million, equal to $1.44 per share on the common stock, up from $25.34 million, or $1.15 per share, in the same period a year ago. Net sales also increased, rising 7.1% to $209 million from $194.98 million.
Gross profit in the Ingredient Solutions segment increased to $11.6 million in the second quarter of fiscal 2023, up 36% from $8.5 million in the second quarter of fiscal 2022, while sales increased 18% to $34.5 million.
“The increase in sales primarily reflects rising consumer demand for plant-based proteins and food products with lower net carbohydrates, which drove higher sales of our specialty wheat proteins and starches as well as our commodity wheat starches,” David J. Colo, president and chief executive officer, said during an Aug. 3 conference call with analysts.
Brandon M. Gall, chief financial officer, noted during the call that MGPI plans to decouple the assets in distillery from the ingredients facility at its Atchison plant by the end of 2023.
“We still think very highly of our ingredients business, and we’ll continue to operate and grow that part of our business,” Mr. Gall said. “It’s probably been one of our most consistent performers and year after year growing top line, expanding gross margins and contributing to the bottom line. So at this point, we view that as a key part of the business going forward.”
Looking ahead to the remainder of fiscal 2023, MGPI expects full-year sales to be in the range of $815 million to $835 million, unchanged from its earlier forecast, while adjusted EBITDA is forecast in the range of $187 million to $192 million, up from a previous range of $178 million to $183 million. Adjusted earnings per share are expected to be in the $5.35 to $5.50 range, up from an earlier forecast of $5.05 to $5.20.In the six months ended June 30, net income was $62.56 million, or $2.84 per share, virtually unchanged from $62.46 million, or $2.84 per share, in the same period a year ago. Sales were $410.01 million, up 5% from $390.22 million.