MGP Ingredients Stock Jumps On Strong Q2 results, Upbeat FY21 Outlook

MGP Ingredients Inc MGPI reported second-quarter FY21 sales growth of 89% year-on-year, to $174.94 million, beating the analyst consensus of $145.33 million.
Sales in the distillery products segment rose 20.8%, and Ingredient solutions gained 39.1%. Branded spirits sales surged to $60.4 million, primarily due to the Luxco acquisition.
Gross profit rose 174.5% Y/Y to $56.8 million, representing 32.5% of sales.
The operating margin was 15.8%, and operating income for the quarter rose 144% to $27.7 million.
The company held $37.2 million in cash and equivalents as of June 30, 2021.
Net cash provided by operating activities for the year-to-date period amounted to $47.5 million.
Adjusted EBITDA of $42.3 million gained 169.8% Y/Y.
EPS of $1.27 beat the analyst consensus of $0.59.
"The American Whiskey category remains robust, and we continue to optimize our significant share and scale advantage to grow the business," said CEO David Colo.
MGP's quarterly dividend of $0.12 per share is payable on September 3, 2021, to stockholders of record as of August 20, 2021.
Outlook: MGP provided FY21 guidance, including Luxco's financial results. It sees sales of $570 million - $580 million versus the consensus of $559.79 million.
The company expects FY21 adjusted EPS of $2.90 - $3.00, versus the consensus of $2.89.
Price action: MGPI shares are trading higher by 10.10% at $65.28 on the last check Wednesday.

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