MGPI - MGP Ingredients: Modest Organic Growth Likely Ahead After 2024 Distillery Closure

2024-06-18 08:50:06 ET

Summary

• MGP Ingredients operates distilleries and sells spirit drinks, distilling solutions, and food ingredients sourced from wheat starches.
• Recent highly accretive acquisitions have boosted MGP's earnings greatly, and future growth looks to be modest with a stable Q1 performance excluding the Atchison distillery closure.
• While earnings have been pushed up greatly, cash flows continue to be weak with constant working capital increases and high capex.
• The current valuation seems balanced when considering the future cash flow potential.

MGP Ingredients, Inc. ( MGPI ) operates distilleries, selling spirit drinks such as Ezra Brooks Bourbon, Rossville Union, Yellowstone Select, El Mayor Tequila, and many others. In addition, the company sells distilling solutions and food ingredients mostly sourced from wheat starches. The distilling solutions is MGP’s largest segment with a bit over half of total sales in 2023....

For further details see: