AI Earnings Predictions for MGP Ingredients Inc. (MGPI)

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MGP Ingredients Reports Third Quarter 2026 Results

Company reaffirms full-year 2026 guidance, declares $0.12 quarterly dividend and will become Sempreon, Inc. (Nasdaq: CASK) on November 2

ATCHISON, Kan., October 28, 2026 - MGP Ingredients, Inc. (Nasdaq: MGPI), a leading provider of branded and distilled spirits and food ingredient solutions, which will change its name to Sempreon, Inc. and its ticker symbol to CASK on November 2, 2026, today reported results for the third quarter ended September 30, 2026. During the quarter, the company continued to execute against its strategic roadmap, reducing total debt by $28.4 million and delivering adjusted EBITDA and adjusted basic EPS ahead of its expectations.

Key Third Quarter Metrics

US$M, ex. per share

2026

2025

Consolidated sales $117.9$130.9

Gross profit $40.5$49.4

Gross margin 34.3%37.8%

Net income $6.9$15.4

Adjusted net income $8.6$18.5

EPS, basic $0.32$0.71

Adjusted EPS, basic $0.39$0.85

Adjusted EBITDA $21.5$32.3

Capital expenditures, YTD $11.0$25.4

Net debt leverage ratio, as of 9.30.26 3.6x1.8x

“Our third quarter results show that we are doing what we said we would do. Our cash flow from operations was $32 million during the quarter, and adjusted EBITDA, adjusted basic EPS and ending net leverage each came in better than our expectations. As a result, we are reaffirming guidance,” said Julie Francis, president and CEO. “In Branded Spirits, Penelope Bourbon sales grew 12% and our mid-priced brands grew 6%. Distilling Solutions continued to navigate an oversupplied market and Ingredient Solutions grew sales by 5%. As we become Sempreon on November 2, our focus remains on executing our strategic roadmap in each of our three businesses, supported by our financial discipline and our strong right to win.”

Consolidated Results

Third quarter 2026 versus prior year

–Sales decreased by 10% to $117.9 million, primarily due to expected lower brown goods sales in Distilling Solutions and lower sales of international private label bottled products within the Branded Spirits’ other category, partially offset by higher Ingredient Solutions sales.

–Gross profit decreased 18% to $40.5 million and gross margin declined approximately 350 basis points to 34.3%, as higher waste starch stream costs in Ingredient Solutions, higher costs in Branded Spirits and lower brown goods volume more than offset lower distillation costs in Distilling Solutions.

–Operating income decreased 43% to $12.0 million. On an adjusted basis, operating income decreased by 44% to $14.0 million.

–Adjusted EBITDA decreased 33% to $21.5 million.

–Advertising and promotion expenses decreased 4% to $6.4 million, reflecting the timing of spend

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throughout the year as well as savings resulting from outside agency consolidation.

–Selling, general and administrative expense increased 14%, primarily due to a higher incentive compensation accrual, partially offset by cost savings initiatives. Adjusted SG&A increased 13% and represented 17% of consolidated sales.

–Net income was $6.9 million and basic EPS was $0.32. On an adjusted basis, net income and basic EPS were $8.6 million and $0.39 per share, respectively.

–Year-to-date operating cash outflows were $8.9 million, inclusive of $48.7 million of the Penelope earnout payment classified in operating activities; excluding that payment, year-to-date operating cash inflows were $39.8 million. The net debt leverage ratio was approximately 3.6x at September 30, 2026.

Branded Spirits

Third quarter 2026 versus prior year

–Sales of $58.2 million decreased 4% versus $60.7 million.

–Gross profit of $29.2 million decreased 9% versus $32.2 million.

–Gross margin of 50.2% decreased by 280 basis points versus 53.0%.

Key developments versus prior year

–Excluding the other products category, which consists primarily of international sales of private label bottled products, sales were in line with the prior year and were negatively impacted by distributor system cutovers.

–Premium plus sales decreased by 1%. Penelope Bourbon sales increased 12%.

–Combined sales of the mid- and value-priced portfolios improved slightly, with mid-priced offerings growing 6%, led by Ezra Brooks 90 Proof, Exotico tequila and Juarez tequila.

Distilling Solutions

Third quarter 2026 versus prior year

–Sales of $29.0 million decreased 29% versus $40.9 million.

–Gross profit of $9.4 million decreased 34% versus $14.2 million.

–Gross margin of 32.4% decreased by 230 basis points versus 34.7%.

Key developments versus prior year

–As expected, elevated industry-wide barrel inventories resulted in a 47% decline in brown goods sales.

–Sales of white goods and other co-products increased 32% primarily due to higher sales volumes.

–Warehouse services revenue increased 3%.

–Higher white goods production volumes and cost savings initiatives led to lower distillation costs, partially offsetting the impact of lower

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MGP INGREDIENTS REPORTS FIRST QUARTER 2026 RESULTS

Company reaffirms full-year 2026 financial outlook and declares $0.12 quarterly dividend

ATCHISON, Kan., April 29, 2026 - MGP Ingredients, Inc. (Nasdaq: MGPI), a leading provider of branded and distilled spirits and food ingredient solutions, today reported results for the first quarter ended March 31, 2026.

“I’m pleased with our first quarter results, as sales were in-line with expectations, while adjusted EBITDA and adjusted basic EPS came in ahead of our plans. During the quarter, we remained focused on disciplined execution and long-term value creation, as we continued to navigate a challenging industry backdrop,” said Julie Francis, president and CEO. “We also maintained momentum in our premium plus portfolio, led by Penelope Bourbon and continued demand for our specialty offerings, and delivered growth in Ingredient Solutions, reflecting improvements in operational reliability. As we move through 2026, we will continue to follow our strategic roadmap and drive our key growth initiatives, while prioritizing our best opportunities for growth, taking decisive actions, and executing with discipline.”

First Quarter 2026 Financial Highlights Compared to First Quarter 2025:

•Consolidated sales decreased 13% to $106.4 million.

•Consolidated gross profit decreased 22% to $33.6 million. Gross margin decreased by 400 basis points to 31.6%.

•Net income decreased to a loss of $134.8 million, primarily due to discrete, non-cash adjustments of $179.5 million to reduce the carrying amount of goodwill and other long-lived assets in the Branded Spirits segment. Adjusted net income decreased 57% to $3.3 million.

•Basic earnings per common share decreased to $(6.30) per share from $(0.14) per share, primarily due to the adjustments described above. Adjusted basic EPS decreased 58% to $0.15 per share.

•Adjusted EBITDA decreased 31% to $15.0 million.

•Capital expenditures declined 75% to $2.0 million as the company continued to optimize its capital spend in light of the current industry environment.

•Net debt leverage ratio was approximately 2.1x as of March 31, 2026.

Consolidated Results

First quarter 2026 sales decreased by 13% versus the prior year, primarily due to expected declines in brown goods sales in the Distilling Solutions segment. The lower brown goods sales volume also pressured profitability, resulting in declines in gross profit and gross margin. Operating income decreased to a loss of $173.2 million, primarily due to discrete, non-cash adjustments to goodwill and other long-lived assets. On an adjusted basis, operating income decreased by 49% to $7.9 million. For the quarter, adjusted EBITDA decreased 31% to $15.0 million.

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First quarter advertising and promotion expenses decreased 24% to $6.2 million, as the company continued to realign spend behind its most attractive growth opportunities, with Branded Spirits advertising and promotion spend of $6.0 million or approximately 13.6% of Branded Spirits segment sales. First quarter selling, general and administrative expense declined 1%, while adjusted SG&A decreased 2% and represented 18% of consolidated sales.

During the first quarter of 2026, the company recorded a $115.7 million non-cash adjustment to the carrying value of goodwill and a $37.0 million non-cash adjustment to the carrying value of indefinite-lived intangible assets in the Branded Spirits segment, primarily due to certain unfavorable macroeconomic factors such as a higher discount rate and lower peer valuation multiples. Additionally, during the first quarter, the company recorded a $26.9 million long-lived fixed asset impairment related to equipment at its Lux Row distillery in Bardstown, KY, which, as previously announced, is being temporarily idled beginning in May 2026. These charges resulted in a net loss of $134.8 million and basic EPS loss of $(6.30) for the first quarter. On an adjusted basis, first quarter net income and basic EPS were $3.3 million and $0.15 per share, respectively.

Branded Spirits

Branded Spirits segment sales of $44.2 million decreased 8% versus the prior year quarter. Premium plus sales increased by 1.5%, as the company’s targeted focus on growth opportunities continued to gain traction. Within this portfolio, Penelope Bourbon maintained its strong growth trajectory and was up 10% versus the prior year. As expected, sales of private label bottled products within the other category declined year-over-year. Combined sales of mid- and value-priced portfolios declined by 3%, as the company continued to successfully prioritize its best performing offerings in these price tiers. Branded Spirits gross margin increased by 180 basis points to 47.8%, while gross profit moderated slightly to $21.1 million.

Distilling Solutions

Distilling Solutions segment sales of $28.0 million decreased by 40% versus the prior year, while gross profit declined 54% t