MGP Ingredients posts 4Q profit on improving margins, higher food grade alcohol sales

MGP Ingredients posts 4Q profit on better margins

ATCHISON, Kan. — MGP Ingredients Inc. returned to a profit in its fourth-quarter, the supplier for the packaged goods industry reported Monday as it reported larger profits from key segments and greater food grade alcohol sales from its joint venture.

The company, which makes starches, proteins and food-grade alcohol from grains, earned $2.5 million, or 14 cents per share, in the three-month period ending June 30. In the prior year period the company lost $2.9 million, or 18 cents per share.

Revenue rose 4 percent to $54.4 million, largely on increased output from its joint venture, Illinois Corn Processing.

Revenue for ingredient solutions, which includes starches and proteins, fell 8 percent to $14.6 million, on planned cuts in starches that make less money.

But distillery products revenue rose 12 percent to $39.4 million on higher sales of food grade alcohol for industrial purposes.

CEO Tim Newkirk sales of the company’s wheat starch, which has fiber, is also doing well because food companies are looking to make their products more nutritious.

For the year, the company earned $8.7 million, or 51 cents per share, compared to a loss of $69.1 million, or $4.17 per share in the prior year.

Revenue fell 30.8 percent to $202 million.