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MGP Ingredients Ingredient Solutions sales rise 2% on new national customers
Gross profit in the Ingredient Solutions unit fell 53% year over year to $3.6 million, even as sales edged up to $35.5 million in the quarter ended June 30.
MGPI Ingredient Solutions sales increased 2% to $35.5 million in the second quarter ended June 30, helped by four new national customers, MGP Ingredients CEO Julie Francis said, according to World Grain.
Francis said specialty starch sales, including Fibersym, rose 2%, and the company’s specialty protein platform marketed under Arise grew on favorable mix and pricing. She also linked results to improved sales of biofuel and other co-products as operations stabilized.
Despite the revenue gain, profitability in the segment declined, with gross profit totaling $3.6 million, down 53% from $7.6 million in the prior year period. The company said elevated waste starch disposal costs related to its transition after closing its Atchison distillery and starting its biofuel facility weighed on the segment.
World Grain also reported that overall MGPI net income was $11.85 million, or 55 cents per share, in the quarter, down 17% from $14.27 million, or 67 cents per share, a year earlier. Adjusted EBITDA fell 23% to $27.61 million, while total sales decreased 15% to $124.36 million.