USA-  Higher sales of specialty wheat starches and specialty wheat proteins drove MGP Ingredient Solutions segment sales up 28% to US$115.9 million in 2022.

Additionally, the segment’s gross profit increased to US$31.5 million, or 27.2% of segment sales, compared to US$22.2 million, or 24.5% of segment sales in 2021.

The fourth quarter of 2022 also showed good performance for the segment, registering a 24% increase to US$29.0 million, and a 38% increase in gross profit to US$6.9 million from US$5.0 million in the fourth quarter of 2021.

Net sales, on the other hand, increased by 24% to $29 million during the quarter.

Overall, in 2022, the five largest ingredient solutions customers accounted for 11 percent of MGP’s consolidated sales, indicating that this segment holds an important place in the company’s portfolio. 

“Our Ingredient Solutions segment recorded another record year from a sales and gross profit perspective as consumer demand for plant-based high protein and lower net carbohydrate foods continued,” CEO David J. Colo said during a Feb. 23 conference call with analysts.

The other two segments, distilling solutions, and branded spirits, also contributed to the company’s good performance in 2022, as the company had a growing demand for new distillate and aged whiskey and branded whiskey and tequila brands.

Overall, the net income at MGP Ingredients, Inc. increased 20% in the fiscal year ended Dec. 31, 2022, climbing to US$108.59 million, equal to $4.94 per share on the common stock, up from $90.6 million, or $4.37 per share, in fiscal 2021.

Overall net sales also increased 25% to US$782.36 million from US$626.72 million.

During the fourth quarter, net income totaled US$22.48 million down 29% from US$31.63 million in the same period a year ago, while the net sales were US$190.99 million, up 14% from US$166.85 million.

This reduction in the net income was attributed to increased commodity costs and excess supply in the market, and it affected income from industrial alcohol and white goods.

However, the income from the year-ago quarter included a US$12.2 million tax-effected, favorable insurance recovery.

 

Ingredients segment expected to perform even better in 2023

This year, MGP expects to invest in the growth of the ingredients segment, which is likely to improve segment sales and profits.

The company has begun initial shipments of ProTerra seasoned crumbles that are used as a meat alternative at colleges and universities.

Additionally, the company plans to begin construction of the company’s textured protein extrusion facility in Atchison by the fourth quarter of 2023.

“We believe that continued momentum we have realized across our specialty wheat and emerging pea-based products will enable long-term sustainable growth for the segment,” he said.

In 2023, MGPI expects sales of between US$815 million and US$ $835 million and adjusted EBITDA of between US$178 million and US$183 million.

Meanwhile, MGP’s board of directors recently declared a quarterly dividend of US$0.12 cents per share of common stock., payable on March 24, 2023, to stockholders of record as of March 10, 2023.

 For all the latest food industry news from Africa and the World, subscribe to our NEWSLETTER, follow us on Twitter and LinkedIn, like us on Facebook and subscribe to our YouTube channel