MGP posts strong results in pandemic year | Business


MGP Ingredients reported a 9% annual sales increase as well as a boost in operating income in its year-end operating results.

Headquartered at 100 Commercial St. in Atchison, Kansas, the company attributed the 2020 fiscal results to increased sales of both premium beverage alcohol and food ingredients.

Its consolidated sales in 2020 totaled $395.5 million, an increase of 9% from the same period in 2019. Full year sales of distillery products segment sales increased by 6.8%, to $317.5 million. Higher aged whiskey sales have been a large factor in the premium alcohol beverage sales in the distillery products segment. MGP is known to distribute numerous types of this whiskey as they work with small startups and globally-recognized brands.

“The continued robust consumer demand for premium beverage alcohol was highlighted by the strong demand for our American whiskey products. Our record gross profit results confirm the long-term value of our aging whiskey inventory, supported by our ability to cultivate solid partnerships with existing customers as well as attract new aged whiskey and new distillate customers,” said David Colo, who joined MGP as president and chief operating officer in March of 2020.

Earnings per share saw an increase from $2.27 in 2019 to $2.51 in the full year 2020 report. Colo said in the aforementioned report how pleased the company’s segmented earnings reflect their economic progress. Consolidated gross profit increased 29% and operating income increased 14.8%.

“We are very pleased with the continued momentum by each of our segments this quarter, reflecting strong growth for the year,” he said. “Each quarter this year posted a record gross profit result versus the respective prior years’ quarters, and the fourth was no exception.”

Full year sales of distillery products segment sales increased by 6.8% totaling $317.5 million. Higher aged whiskey sales have been a large factor in the 19.1% increase in sales of premium beverage alcohol.

According to nasdaq.com, analysts for MGP expect revenues to reach $398.2 million in 2021.

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