Overview

* MGP Ingredients ( MGPI ) Q2 sales fall 24% to $145.5 mln, beating analyst expectations

* Adjusted EPS drops 43% to $0.97, no analyst estimate provided

* Co reaffirms 2025 sales and adjusted earnings outlook

Outlook

* MGP Ingredients ( MGPI ) projects 2025 sales between $520 mln and $540 mln

* Company expects adjusted EBITDA for 2025 between $105 mln and $115 mln

* MGP Ingredients ( MGPI ) sees adjusted EPS for 2025 in the range of $2.45 to $2.75

* Company revises full-year capital expenditures to approximately $32.5 mln

Result Drivers

* BROWN GOODS DECLINE - Reduced customer demand for brown goods due to elevated industry-wide barrel inventories impacted sales, per co

* PROACTIVE ENGAGEMENT - Brown goods sales volume and pricing met expectations due to proactive customer engagement

* PREMIUM PLUS GROWTH - Penelope brand drove growth in premium plus sales within Branded Spirits segment

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat $145.50 $139.40

mln mln (6

Analysts

)

Q2 Net $14.40

Income mln

Q2 $35.90

Adjusted mln

EBITDA

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the distillers & wineries peer group is "buy"

* Wall Street's median 12-month price target for MGP Ingredients Inc ( MGPI ) is $39.50, about 25.6% above its July 30 closing price of $29.37

* The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)