World Grain - March 2022 - 13

MGPI profit surges 126% in fiscal 2021
ATCHISON, KANSAS, US - Net
income at MGP Ingredients, Inc. increased
126% in the fiscal year ended
Dec. 31, 2021, climbing to $90.6 million,
equal to $4.37 per share on the
common stock, up from $40.08 million,
or $2.37 per share, in fiscal 2020. Net
sales increased 58% to $626.72 million
from $395.52 million.
During the fourth quarter, net income
totaled $31.63 million, or $1.44
per share, up 173% from $11.56
million, or 69¢ per share, in the
same period a year ago. Net sales
were $166.85 million, up 65% from
$100.92 million.
Gross profit in the Ingredient
Solutions segment increased to $22.2
million in fiscal 2021 from $20.8
million in fiscal 2020, while sales increased
16% to $90.7 million, driven
by higher sales of specialty wheat
starches and specialty wheat proteins.
During the fourth quarter, gross profit
in the segment totaled $5 million, down
from $5.3 million in the same period a
year ago. Net sales during the quarter
increased 15% to $23.4 million.
" By all accounts, 2021 represented
a remarkable year for our company, "
David J. Colo, president and chief
executive officer, said during a Feb.
24 conference call with analysts. " As
we executed against our strategy, the
strength and value of our business
model were on full display, improved
effectiveness in our tactical execution
allowed MGP to deliver our most
profitable year in company history.
The determination and continued focus
from our team to meet increased
customer demand for our products,
while achieving strong financial performance
resulted in record results
across each of our segments this
year. We are also very pleased with
the continued success of the integration
efforts of the Luxco acquisition
achieved by the organization. "
Brandon M. Gall, vice president of
finance and chief financial officer, noted
that MGPI experienced a reduction
in gross margins in the fourth quarter
in the Ingredient Solutions segment
related to planned maintenance and
repairs that are not expected to recur.
" So, with that dynamic in Q4, and
then we also had a disruption in Q1,
those two quarters together did bring
down the full-year margin profile
for Ingredient Solutions, " Gall said.
" However, our view is that Q2 and Q3
of this year, which is mid-to-upper 20%
gross margins, is more in line with the
long-run capability of this segment. "
Looking ahead to fiscal 2022, Colo
said MGPI expects sales to be in the
range of $690 million to $715 million,
which would be up about 10% to 14%
from fiscal 2021.
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World Grain - March 2022

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