MGP Ingredients, Inc. (MGPI) Q3 2025 Earnings Call Transcript
Consolidated Sales Declined 19% year-over-year due to growth in premium plus portfolio and higher specialty ingredient sales being offset by declines in brown goods and mid- to value brands.
Adjusted EBITDA Declined to $32 million, reflecting a decrease of 29% year-over-year. This was due to lower gross profits but was above expectations due to favorable mix improvements, pricing discipline, and productivity initiatives.
Adjusted Basic Earnings Per Share Reached $0.85, a decrease of 34% year-over-year, attributed to lower operating results.
Operating Cash Flows Increased 26% year-over-year to $93 million, driven by strong cash generation and effective working capital management.
Branded Spirits Segment Sales Decreased by 3% year-over-year. Premium plus sales showed positive growth, driven by Penelope Bourbon, but were offset by a 7% decline in mid and value brands.
Distilling Solutions Segment Sales Declined by 43% year-over-year, with brown goods sales decreasing by 50%. However, year-to-date sales and margins were better than initial outlook due to higher aged whiskey sales and proactive customer partnerships.
Ingredient Solutions Segment Sales Increased by 9% year-over-year, driven by higher specialty and commodity wheat protein sales. However, gross profit declined by 36% due to equipment outages and operational reliability issues.
Gross Margin Declined by 300 basis points to 37.8%, primarily due to lower gross profits in the Distilling Solutions and Ingredient Solutions segments.
SG&A Expenses Increased by 10% year-over-year, but adjusted SG&A increased by only 4%. Excluding incentive accrual reinstatement, adjusted SG&A was down 9%, reflecting productivity initiatives.
Advertising and Promotion Expenses Declined by 31% year-over-year as spending was realigned to focus on the most attractive growth opportunities.
Net Income Decreased to $15 million, a decline of 36% year-over-year, primarily due to lower operating results.
Capital Expenditures Reduced by more than 50% year-over-year to $7 million for the quarter and $25 million year-to-date, reflecting streamlined capital expenditures.
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Rebel Bourbon Reintroduces Root Beer Whiskey at $19.99, Infused with Natural Flavors
- Product Comeback: Rebel Bourbon announces the return of Rebel Root Beer Whiskey, featuring a classic wheated recipe infused with bold root beer flavors, priced at $19.99 for a 750mL bottle and $0.99 for a 50mL bottle, expected to attract a wide consumer base.
- Flavor Profile: The whiskey combines classic root beer flavors of sassafras, vanilla, and licorice with aged bourbon notes of caramel and honey, aiming to provide a unique drinking experience that enhances the brand's market competitiveness.
- Marketing Promotion: The distinctive label design and 'Shoot the Root' branding will be promoted through merchandise giveaways and chilled pour machines, aiming to boost consumer engagement and brand awareness.
- Brand History: Rebel Bourbon has been known for its wheated recipe since 1849 and has recently won multiple industry awards, including the 2025 Single Barrel American Whiskey of the Year, highlighting its position in the premium spirits market.
Rebel Bourbon Revives Root Beer Whiskey at $19.99, Nationwide Release
- Product Comeback: Rebel Bourbon announces the return of the popular Rebel Root Beer Whiskey, which combines its traditional wheated recipe with bold root beer flavors, expected to attract loyal consumers and enhance brand visibility.
- Pricing Strategy: Rebel Root Beer Whiskey is launched at a suggested retail price of $19.99 for a 750mL bottle and $0.99 for a 50mL bottle, aiming to attract a broader consumer base through competitive pricing and strengthen market presence.
- Marketing Activation: The product's distinctive label and “Shoot the Root” branding will engage consumers through merchandise giveaways and shot machines, likely increasing brand interaction and customer loyalty.
- Industry Recognition: Other Rebel Bourbon products have received multiple industry awards in 2025, including “Single Barrel American Whiskey of the Year,” which will further enhance consumer trust and anticipation for the new product.
