MGP Ingredients Q1 sales decline 52.5%
MGP Ingredients, a developer and producer of grain-based starches, proteins and food grade alcohol products in the US, has reported net sales of $47.08m for the first quarter of fiscal 2010, a decrease of 52.5% compared to $ 99.02m in the same quarter last year.
The sales decline was principally due to the company's significant reductions in sales of fuel grade alcohol and commodity ingredients.
The company has posted net income of $3.73m or $0.22 in diluted earnings per share for the quarter, compared to a net loss of $17.24 or $1.04 in diluted loss per share, for the first quarter of fiscal 2009.
The increase in earnings was primarily due to improved sales mix of value-added products, reductions in grain and energy costs, and lower payroll costs as a result of restructuring completed in fiscal year 2009.
MGP Ingredients president and CEO Tim Newkirk said that the profit momentum has been carried over from the fourth quarter, again reflecting the stark difference in company's product mix and cost structure as compared to one year ago.
“We completed a significant transformation in fiscal 2009 in order to strengthen our position as a producer of value-added ingredients sold into a wide range of branded packaged goods. We have significantly reduced our presence in the commodity-type product markets, particularly fuel grade alcohol and vital wheat gluten, Newkirk said.
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