Exhibit 99.1
EX-99.1 mgpiq32026ex-991.htm EX-99.1
Document
MGP Ingredients Reports Third Quarter 2026 Results Company reaffirms full-year 2026 guidance, declares $0.12 quarterly dividend and will become Sempreon, Inc. (Nasdaq: CASK) on November 2 ATCHISON, Kan., October 28, 2026 - MGP Ingredients, Inc. (Nasdaq: MGPI), a leading provider of branded and distilled spirits and food ingredient solutions, which will change its name to Sempreon, Inc. and its ticker symbol to CASK on November 2, 2026, today reported results for the third quarter ended September 30, 2026. During the quarter, the company continued to execute against its strategic roadmap, reducing total debt by $28.4 million and delivering adjusted EBITDA and adjusted basic EPS ahead of its expectations.
Key Third Quarter Metrics US$M, ex. per share 2026 2025
Consolidated sales $117.9 $130.9
Gross profit $40.5 $49.4
Gross margin 34.3% 37.8%
Adjusted EPS, basic $0.39 $0.85
Adjusted EBITDA $21.5 $32.3
Capital expenditures, YTD $11.0 $25.4 Net debt leverage ratio, as of 9.30.26 3.6x 1.8x “Our third quarter results show that we are doing what we said we would do. Our cash flow from operations was $32 million during the quarter, and adjusted EBITDA, adjusted basic EPS and ending net leverage each came in better than our expectations. As a result, we are reaffirming guidance,” said Julie Francis, president and CEO. “In Branded Spirits, Penelope Bourbon sales grew 12% and our mid-priced brands grew 6%. Distilling Solutions continued to navigate an oversupplied market and Ingredient Solutions grew sales by 5%. As we become Sempreon on November 2, our focus remains on executing our strategic roadmap in each of our three businesses, supported by our financial discipline and our strong right to win.”
Consolidated Results
Third quarter 2026 versus prior year – Sales decreased by 10% to $117.9 million , primarily due to expected lower brown goods sales in Distilling Solutions and lower sales of international private label bottled products within the Branded Spirits’ other category, partially offset by higher Ingredient Solutions sales.
– Gross profit decreased 18% to $40.5 million and gross margin declined approximately 350 basis points to 34.3%, as higher waste starch stream costs in Ingredient Solutions, higher costs in Branded Spirits and lower brown goods volume more than offset lower distillation costs in Distilling Solutions.
– Operating income decreased 43% to $12.0 million . On an adjusted basis, operating income decreased by 44% to $14.0 million.
– Adjusted EBITDA decreased 33% to $21.5 million.
– Advertising and promotion expenses decreased 4% to $6.4 million, reflecting the timing of spend throughout the year as well as savings resulting from outside agency consolidation.
– Selling, general and administrative expense increased 14%, primarily due to a higher incentive compensation accrual, partially offset by cost savings initiatives. Adjusted SG&A increased 13% and represented 17% of consolidated sales.
– Net income was $6.9 million and basic EPS was $0.32. On an adjusted basis, net income and basic EPS were $8.6 million and $0.39 per share, respectively.
– Year-to-date operating cash outflows were $8.9 million, inclusive of $48.7 million of the Penelope earnout payment classified in operating activities; excluding that payment, year-to-date operating cash inflows were $39.8 million. The net debt leverage ratio was approximately 3.6x at September 30, 2026.
Branded Spirits
Third quarter 2026 versus prior year – Sales of $58.2 million decreased 4% versus $60.7 million.
Key developments versus prior year – Sales growth was driven by higher sales of specialty wheat proteins, including textured proteins, and biofuel and other byproducts, partially offset by lower specialty wheat starch sales volumes primarily due to longer-than-expected downtime following a scheduled plant shutdown.
– Higher waste starch stream costs pressured profitability, partially offset by an initial insurance recovery payment related to a 2025 equipment outage.
2026 Financial Outlook MGP reaffirmed its consolidated guidance for fiscal 2026:
• Sales projected to be in the range of $480 million to $500 million.
• Adjusted EBITDA expected to be between $90 million to $98 million.
• Adjusted basic EPS expected to be in the $1.50 to 1.80 range, with weighted average basic shares outstanding of approximately 21.4 million.
• An effective tax rate of approximately 23%.
• Full-year capital expenditures expected to be approximately $20 million.
Dividend Distribution The company’s Board of Directors declared a dividend of $0.12 per share of common stock. The dividend is payable on November 27, 2026, to stockholders of record as of November 13, 2026.
Corporate Name Change and Ticker Change As announced on October 15, 2026, the company’s name will change to Sempreon, Inc. and its Nasdaq ticker symbol will change to “CASK” effective November 2, 2026. The company’s CUSIP number will remain unchanged.
Conference Call and Webcast Information MGP Ingredients will host a conference call today at 10 a.m. ET, October 28, 2026, to discuss the results, provide a general business update, and answer questions. Please visit the News and Events section of the company’s Investor Relations website to access the webcast. Investors can also dial (844) 308-6398 or (412) 717-9605 (international) to listen to the call. A replay will be available on the company’s website approximately 24 hours after the call concludes.
About MGP Ingredients, Inc.