ATCHISON, Kan. - MGP Ingredients , Inc. (NASDAQ:MGPI), a company specializing in branded spirits and food ingredient solutions, announced today that its board of directors has approved a quarterly dividend. Shareholders will receive $0.12 per share of common stock, payable on August 30, 2024, to those on record as of August 16, 2024.
The declaration of the dividend follows MGP Ingredients' tradition of providing returns to its investors and reflects the company's financial health. MGP Ingredients, with a history dating back to 1941, has established itself as a significant player in the distillation industry in the US.
MGP's branded spirits portfolio is diverse, encompassing a range of products from bourbon and rye whiskeys to gins and vodkas. It includes brands from Luxco, acquired by MGP, which has a history of its own dating back to 1958. Luxco's brands, such as Ezra Brooks and Yellowstone Kentucky Straight Bourbon Whiskey, have become staples in the spirits industry.
In addition to spirits, MGP Ingredients offers food ingredient solutions, including specialty proteins and starches derived from plants. These ingredients are designed to provide functional, nutritional, and sensory benefits for a variety of food products.
The company's focus on innovation and quality has positioned it to serve customers ranging from craft brands to multinational companies. MGP Ingredients prides itself on its ability to transform American grain into a wide array of products, reflecting the company's dedication to unlocking the creative potential of this natural resource.
This dividend announcement is based on a press release statement from MGP Ingredients. The company's commitment to shareholder returns is evident in this regular dividend payout, which is part of its long-term financial strategy. As a publicly-traded entity, MGP Ingredients continues to maintain transparency with its investors and the market about its financial decisions and performance.
MGP Ingredients has seen significant changes in its executive team and faced financial challenges. The company has appointed David Colyott as the new Executive Vice President of Operations, succeeding Steve Glaser who is set to retire in July 2024. Colyott brings over 30 years of experience in supply chain operations from his past roles at Mars Petcare and Nestlé Waters (NYSE:WAT) North America.
On the financial front, MGP Ingredients reported a decrease in consolidated sales and net income for the first quarter of 2024, primarily due to the closure of its Atchison distillery. The company's Q1 2024 consolidated sales fell by 15% to $170.6 million, and net income decreased by 34% to $20.6 million. Despite these setbacks, MGP maintains a positive outlook for 2024, projecting sales to range from $742 million to $756 million and adjusted EBITDA between $218 million and $222 million.
InvestingPro Insights
MGP Ingredients, Inc. (NASDAQ:MGPI) has shown resilience in its financial performance, as evidenced by the recent dividend declaration to its shareholders. With a market capitalization of $1.8 billion and a solid P/E ratio of 14.78 based on the last twelve months as of Q1 2024, the company's valuation reflects a balance between its earnings and market expectations. The revenue for the same period stands at $806.08 million, with a modest growth of 2.28%, showcasing the company's ability to maintain revenue streams.
InvestingPro Tips reveal that MGP Ingredients operates with a moderate level of debt, which is a positive sign for investors looking for a stable investment. Moreover, the company's liquid assets surpass its short-term obligations, indicating a healthy liquidity position. These factors contribute to the company's ability to sustain dividend payments. Analysts also predict that the company will be profitable this year, which is consistent with the company's performance over the last twelve months.
Investors interested in a deeper dive into MGP Ingredients' financial health and future prospects can find additional InvestingPro Tips at https://www.investing.com/pro/MGPI. There are currently six more tips available, providing a comprehensive analysis for those considering an investment in the company.
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