USA – MGP Ingredients, a US-based specialty food ingredient producer, announced the appointment of a new CEO, David Bratcher, effective from January 2024, during its Q3 2023 Earnings Call Transcript.
David Bratcher will take over from David Colo, who will retire from his position as President and CEO of MGPI on December 31.
“I have had the pleasure of working closely with David for more than two years and we are fortunate to have such a talented and capable leader to be the next CEO of MGP. David has played a critical role in supporting the company’s growth over the past several years and we are looking forward to his continued leadership across the organization,” Colo commented.
Mr. Colo will remain with MGPI in an advisory role through April 2024 to facilitate a smooth leadership transition.
Before this appointment, Mr. Bratcher served as the President and Chief Operating Officer of Branded Spirits.
Following the merger of Branded Spirits’ parent company, Luxco, Inc., with MGPI in 2021, he worked closely with MGPI’s management team to oversee the overall business and the extensive Branded Spirits portfolio.
Karen Seaberg, board chairman of MGP, congratulated David and expressed hope that his leadership would propel the company further.
“Our deliberate succession planning process has enabled us to ensure a seamless transition. The board is confident that David’s leadership will positively impact our employees, customers, and stockholders into the future,” she commented.
Gross profit rises 24% in Q3
During the transcript call, MGP Ingredients revealed that its consolidated sales for the third quarter of 2023 increased 5% year-over-year to US$211.6 million, while gross profit increased 24% to US$73.4 million, representing 34.7% of consolidated sales.
Additionally, its net income decreased 45% to US$13.1 million, primarily driven by one-time expenses of US$18.3 million related to the planned Atchison distillery closure, as well as the increase of US$4.2 million in fair value of contingent consideration related to the Penelope acquisition.
“Excluding these items, adjusted net income increased 28% to US$30.2 million. Adjusted EBITDA increased 24% to US$48.1 million. The increase was primarily driven by the strong performance of all three business segments,” David Colo announced.
The company also provided that corn, wheat flour, rye, and natural gas represented the largest commodity expenses as each continued to experience elevated prices throughout the quarter. “Compared to the prior year period, our input cost for corn increased 4%, wheat flour increased 24%, rye increased 40% and natural gas increased 30%.”
