Overview

• US spirits and ingredient maker's Q1 sales fell 13% but slightly beat analyst expectations

• Adjusted EPS for Q1 beat analyst expectations despite a 58% yr/yr decline

• Company posted large net loss due to non-cash impairment charges in Branded Spirits segment

Outlook

• MGP Ingredients reaffirms 2026 sales guidance of $480 mln to $500 mln

• Company expects 2026 adjusted EBITDA of $90 mln to $98 mln

• MGP Ingredients projects 2026 adjusted basic EPS of $1.50 to $1.80

Result Drivers

• DISTILLING SOLUTIONS WEAKNESS - Lower demand for aged and new distillate whiskey drove a 56% decline in brown goods sales, pressuring overall revenue and profitability

• BRANDED SPIRITS MIX - Premium plus portfolio, led by Penelope Bourbon, grew, but overall Branded Spirits sales fell 8% as declines in private label and value offerings offset gains

• INGREDIENT SOLUTIONS GROWTH - Ingredient Solutions segment sales rose 29%, driven by higher volumes and improved price/mix of specialty wheat proteins and starches

Company press release: ID:nBw7dtGKXa

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "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 is $31.00, about 53.4% above its April 28 closing price of $20.21

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 9 three months ago

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