MGPI · Sempreon, Inc.

MGP Ingredients reported a challenging first quarter of 2026, marked by significant non-cash impairment charges that resulted in a GAAP net loss of $134.8 million, or $(6.30) per share. The losses stemmed from a $115.7 million goodwill impairment and a $63.9 million impairment of other long-lived assets, including a $26.9 million charge related to equipment at the Lux Row distillery in Bardstown, KY, which is being temporarily idled. Management attributed these impairments to unfavorable macroeconomic factors, including higher discount rates and lower peer valuation multiples. On an adjusted basis, which excludes these charges, the company generated net income of $3.3 million, or $0.15 per share, with Adjusted EBITDA of $15.0 million. CEO Julie Francis noted that while sales were in-line with expectations, adjusted profitability metrics came in ahead of plan.

Operationally, consolidated sales declined 13% to $106.4 million, primarily driven by a 40% sales decrease in the Distilling Solutions segment due to lower demand for aged and new distillate whiskey. The Branded Spirits segment saw an 8% sales decline, though premium plus sales grew 1.5%, led by a 10% increase in Penelope Bourbon. The Ingredient Solutions segment provided a bright spot, with sales increasing 29% to $34.2 million driven by higher volumes of specialty wheat proteins and starches. Despite the quarterly headwinds, management reaffirmed its full-year 2026 financial outlook, projecting sales between $480 million and $500 million and Adjusted EBITDA of $90 million to $98 million. The company also maintained its capital return policy, declaring a quarterly dividend of $0.12 per share.