MGP reports 58.5% FY sales rise
Third-party spirits producer MGP Ingredients saw sales increase by 58.5% to US$626.7 million in 2021, bolstered by its Luxco acquisition.
For its 2021 full-year results, the firm reported a gross profit increase of 101.4% to a record US$199m.
For the fourth quarter of 2020, MGP’s sales grew by 65.3% to US$166m, while gross profit rose by 66.3% to US$52.8m.
David Colo, president and CEO of MGP Ingredients, said: “Our record performance this year demonstrated the strength of our business model and the value each of our segments bring to our global customer base, and was bolstered by the synergistic effects of the Luxco acquisition.
“New distillate and aged whiskey sales experienced another solid year, which drove a 28.4% increase in premium beverage alcohol sales for the year.
“Specialty ingredients sales posted strong double-digit growth this year, resulting in a 16.1% increase in segment sales, and represents another record year for our Ingredient Solutions segment.”
The company’s distillery products segment grew sales by 12.5% to US$352.5m last year, primarily due to aged whiskey and new distillate sales.
The ingredient solutions business posted a 16.1% rise to US$90.7m, boosted by higher sales of specialty wheat starches and specialty wheat proteins.
Colo continued: “Looking ahead to 2022, we will continue to build on our established track record of providing differentiated products and services to our customers. We remain confident in MGP’s ability to deliver sustainable, long-term growth.”
Branded spirits sales
In January 2021, MGP agreed to acquire American whiskey maker Luxco in a deal valued at US$475m. MGP largely credits this investment for its fourth quarter branded sales totalling US$61m. For the full-year 2021, sales from this segment equalled US$183.6m, while gross profit in this region increased to US$62.6m.
Colo added: “Our strong branded spirits segment results for the quarter and year continued to benefit from the accelerated Luxco integration efforts by the organisation.
“Growth in our American whiskey and Tequila offerings contributed to the solid results for the quarter and year. We believe consumer demand for our expansive family of brands and spirits will continue to position us well for incremental growth.”
The company also note that the Atchison facility experienced a fire during Q4 of 2020, which damaged feed drying equipment. A replacement drying system became operational during the fourth quarter of 2021, funded by part of its insurance settlement.
MGP is projecting its full-year sales to reach between US$690m and US$715m in 2022.
“We are very pleased with the momentum we ended the fiscal year on and believe we are well positioned to execute and deliver against our long-term growth strategy in fiscal 2022,” Colo said.
“As a result of the continued demand we have been experiencing in each of our three business segments, we recently announced expansionary projects totalling approximately US$33m over the next two years.
“We are committed to leveraging the strong foundation we’ve established over the years to position MGP for sustainable long-term growth.”