MGP Ingredients plunges after lowering annual forecasts

MGP Ingredients

17/10/2024 21:57

** Shares of distilled spirits and food ingredients producer
MGP Ingredients  MGPI.O  down ~20% at $65.35 in after-market
trading
    ** Company lowers annual sales forecast to a range of $695
mln to $705 mln from between $742 mln to $756 mln, and adjusted
EPS forecast to between $5.55 to $5.65 from a range of $6.12 to
$6.23
    ** "Soft alcohol spirits category trends and elevated
industry-wide whiskey inventories are putting greater than
expected pressure on our brown goods business with a larger
impact on our smaller, craft customer base," says CEO David
Bratcher
    ** MGPI sees industry headwinds to persist through the rest
of the year
    ** Expects Q3 sales to decline 24% YoY vs estimates of a
~12.5% decline, and adjusted EPS of $1.29. vs estimates of $1.44
    ** Co is set to announce Q3 results on Oct 31
    ** Up to Thursday's close, stock has fallen ~17% YTD

 (Reporting by Neil J Kanatt in Bengaluru)
 ((Neil.JKanatt@thomsonreuters.com))