MGPI Reaffirms Fiscal 2025 Revenue and EBITDA Forecasts Amid Stabilization in Business Segments

MGP Ingredients Inc (MGPI) reaffirms its 2025 revenue forecast of $520-$540 million and EBITDA of $105-$115 million. The company's premium plus portfolio, including brands like Penelope and El Mayor, showed solid growth. However, consolidated sales decreased by 29% and adjusted EBITDA fell by 46% compared to the prior year due to declines in the distilling solutions segment.

MGP Ingredients Inc (MGPI) has reaffirmed its financial projections for fiscal year 2025, expecting revenue to range between $520 million and $540 million, aligning with analysts' consensus estimates of $531.98 million [1]. The company also maintains its forecast for adjusted EBITDA in the range of $105 million to $115 million. These affirmations were initially communicated in MGPI's earnings release on May 1, 2025 [2].

The company's premium plus portfolio, which includes brands like Penelope and El Mayor, showed solid growth. However, consolidated sales decreased by 29% and adjusted EBITDA fell by 46% compared to the prior year. This decline was primarily due to a 45% drop in sales in the distilling solutions segment, driven by a 49% drop in brown goods sales [1]. The branded spirits segment also experienced a 4% decrease in sales, with mid and value tier brands facing double-digit declines [1].

Despite these challenges, MGPI has made substantial progress in strengthening its balance sheet. The company has upsized its credit facility and extended its private placement shelf, reflecting improved financial flexibility. Additionally, operational cash flows increased by nearly 82% to $44.7 million, indicating enhanced financial health [1].

Wall Street analysts have a positive outlook on MGPI, with an average target price of $39.00 and a consensus recommendation of "Outperform" [1]. GuruFocus estimates suggest an estimated GF Value of $64.88 for MGPI, indicating a potential upside of 116.05% from the current price of $30.03 [1].

References:

[1] https://www.gurufocus.com/news/2990157/mgpi-reaffirms-fiscal-2025-revenue-and-ebitda-forecasts-mgpi-stock-news
[2] https://www.marketscreener.com/news/mgp-ingredients-inc-reaffirms-earnings-guidance-for-the-full-year-of-2025-ce7c5cdcd98df024