MGP Ingredients Inc (NASDAQ: MGPI) was a big loser in Friday’s trading session. The stock gapped down to close the day at a loss of 27.66%. This came after the company announced lower than expected whiskey sales for the year 2019.
In its preliminary results, the company announced that, it had sales of $362 million in the year, and a gross profit of $76 million. On top of that, it reported a gross margin of about 21%. The company also reported that it expects an operating income of between $46 million and $48 million. It also expects an EPS of $2.20 and $2.30.
Commenting on the results, the CEO Gus Griffin stated that, the results were the direct result of the company’s inability to sell a large segment of its aged whiskey to the levels that it had projected in Q4. He added that, even though the results were not as good as expected, the company still believes that weakness in the aged whiskey market is not a reflection of weakness in the American whiskey market. He further stated that, the company believed that there were long term prospects in the market. On top of that, the company is doing analysis to understand the aged whiskey market for the future.
The CEO concluded his statement by stating that, the company is yet to complete compiling its final results, and that the final results may differ from the preliminary results that it had released. The final results will be released on the 26th of February 2020.
Looking at its price action, MGP Ingredients Inc opened the day with a gap down. It then traded between $45 and $36.14 before closing the day at $38.18. Volumes in the day stood at 2.43 million.
About MGP Ingredients Inc
MGP Ingredients Inc is a supplier of distilled spirits and specialty wheat proteins. It is based in Atchison, Kansas.