Company reaffirms full-year 2026 financial outlook and declares $0.12 quarterly dividend

MGP Ingredients, Inc. (Nasdaq: MGPI), a leading provider of branded and distilled spirits and food ingredient solutions, today reported results for the first quarter ended March 31, 2026.

“I’m pleased with our first quarter results, as sales were in-line with expectations, while adjusted EBITDA and adjusted basic EPS came in ahead of our plans. During the quarter, we remained focused on disciplined execution and long-term value creation, as we continued to navigate a challenging industry backdrop,” said Julie Francis, president and CEO. “We also maintained momentum in our premium plus portfolio, led by Penelope Bourbon and continued demand for our specialty offerings, and delivered growth in Ingredient Solutions, reflecting improvements in operational reliability. As we move through 2026, we will continue to follow our strategic roadmap and drive our key growth initiatives, while prioritizing our best opportunities for growth, taking decisive actions, and executing with discipline.”

First Quarter 2026 Financial Highlights Compared to First Quarter 2025:

• Consolidated sales decreased 13% to $106.4 million.
• Consolidated gross profit decreased 22% to $33.6 million. Gross margin decreased by 400 basis points to 31.6%.
• Net income decreased to a loss of $134.8 million, primarily due to discrete, non-cash adjustments of $179.5 million to reduce the carrying amount of goodwill and other long-lived assets in the Branded Spirits segment. Adjusted net income decreased 57% to $3.3 million.
• Basic earnings per common share decreased to $(6.30) per share from $(0.14) per share, primarily due to the adjustments described above. Adjusted basic EPS decreased 58% to $0.15 per share.
• Adjusted EBITDA decreased 31% to $15.0 million.
• Capital expenditures declined 75% to $2.0 million as the company continued to optimize its capital spend in light of the current industry environment.
• Net debt leverage ratio was approximately 2.1x as of March 31, 2026.

Consolidated Results

First quarter 2026 sales decreased by 13% versus the prior year, primarily due to expected declines in brown goods sales in the Distilling Solutions segment. The lower brown goods sales volume also pressured profitability, resulting in declines in gross profit and gross margin. Operating income decreased to a loss of $173.2 million, primarily due to discrete, non-cash adjustments to goodwill and other long-lived assets. On an adjusted basis, operating income decreased by 49% to $7.9 million. For the quarter, adjusted EBITDA decreased 31% to $15.0 million.

First quarter advertising and promotion expenses decreased 24% to $6.2 million, as the company continued to realign spend behind its most attractive growth opportunities, with Branded Spirits advertising and promotion spend of $6.0 million or approximately 13.6% of Branded Spirits segment sales. First quarter selling, general and administrative expense declined 1%, while adjusted SG&A decreased 2% and represented 18% of consolidated sales.

During the first quarter of 2026, the company recorded a $115.7 million non-cash adjustment to the carrying value of goodwill and a $37.0 million non-cash adjustment to the carrying value of indefinite-lived intangible assets in the Branded Spirits segment, primarily due to certain unfavorable macroeconomic factors such as a higher discount rate and lower peer valuation multiples. Additionally, during the first quarter, the company recorded a $26.9 million long-lived fixed asset impairment related to equipment at its Lux Row distillery in Bardstown, KY, which, as previously announced, is being temporarily idled beginning in May 2026. These charges resulted in a net loss of $134.8 million and basic EPS loss of $(6.30) for the first quarter. On an adjusted basis, first quarter net income and basic EPS were $3.3 million and $0.15 per share, respectively.

Branded Spirits

Branded Spirits segment sales of $44.2 million decreased 8% versus the prior year quarter. Premium plus sales increased by 1.5%, as the company’s targeted focus on growth opportunities continued to gain traction. Within this portfolio, Penelope Bourbon maintained its strong growth trajectory and was up 10% versus the prior year. As expected, sales of private label bottled products within the other category declined year-over-year. Combined sales of mid- and value-priced portfolios declined by 3%, as the company continued to successfully prioritize its best performing offerings in these price tiers. Branded Spirits gross margin increased by 180 basis points to 47.8%, while gross profit moderated slightly to $21.1 million.

Distilling Solutions

Distilling Solutions segment sales of $28.0 million decreased by 40% versus the prior year, while gross profit declined 54% to $8.6 million, or 30.8% of segment sales. As expected, lower demand for aged and new distillate whiskey continued to pressure segment results and drove a 56% decline in brown goods sales for the first quarter.

Ingredient Solutions

Ingredient Solutions segment sales of $34.2 million increased by 29% versus the prior year, primarily driven by higher sales volume and price/mix of specialty wheat proteins and starches. Segment gross profit increased to $3.8 million, or 11.2% of segment sales, as higher sales of specialty protein and starch products partially offset higher waste starch stream disposal costs.

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 27%.
• 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 May 29, 2026, to stockholders of record as of May 15, 2026.

Conference Call and Webcast Information

MGP Ingredients will host a conference call today at 10 a.m. ET, April 29, 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.

MGP Ingredients Inc. (Nasdaq: MGPI) has been formulating excellence since 1941 by bringing product ideas to life across the alcoholic beverage and specialty ingredient industries through three segments: Branded Spirits, Distilling Solutions, and Ingredient Solutions. MGPI is one of the leading spirits distillers with an award-winning portfolio of premium brands including Penelope, Rebel, Remus, and Yellowstone bourbons and El Mayor tequila, under the Luxco umbrella. With distilleries in Indiana and Kentucky; a tequila distillery in Arandas, Mexico; and bottling operations in Missouri, Ohio, and Northern Ireland, the company creates distilled spirits for customers including many world-renowned spirits brands. In addition, the company’s high-quality specialty fiber, protein, and starch ingredients provide functional, nutritional, and sensory solutions for a wide range of food products. To learn more visit MGPIngredients.com.

Cautionary Note Regarding Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation statements about the ability of MGP Ingredients, Inc. (the “Company” or “MGP”) to drive growth initiatives, prioritize growth opportunities, take decisive actions, and execute with discipline; and the Company’s 2026 outlook, including its expectations for sales, adjusted EBITDA, adjusted basic earnings per share (“EPS”), shares outstanding, tax rate, and capital expenditures. Forward looking statements are usually identified by or are associated with words such as “intend,” “plan,” “believe,” “estimate,” “expect,” “anticipate,” “project,” “forecast,” “hopeful,” “should,” “may,” “will,” “could,” “encouraged,” “opportunities,” “potential,” and similar terminology. These forward-looking statements reflect management’s current beliefs and estimates of future economic circumstances, industry conditions, Company performance, Company financial results, and Company financial condition and are not guarantees of future performance.

All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Factors that could cause actual results to differ materially from our expectations include without limitation any effects of changes in consumer preferences and purchases and our ability to anticipate or react to those changes; our ability to compete effectively and any effects of industry dynamics and market conditions; unfavorable economic conditions; damage to our reputation or that of any of our key customers or their brands; failure to introduce successful new brands and products or have effective marketing or advertising; changes in public opinion about alcohol or our products; our reliance on our distributors to distribute our branded spirits; our reliance on fewer, more profitable customer relationships; interruptions in our operations or a catastrophic event at our facilities; decisions concerning the quantity of maturing stock of our aged distillate; any inability to successfully complete our capital projects or fund capital expenditures or any warehouse expansion issues; our reliance on a limited number of suppliers; work disruptions or stoppages; climate change and measures to address climate change; regulation and taxation and compliance with existing or future laws and regulations; tariffs, trade relations, and trade policies; excise taxes, incentives and customs duties; our ability to protect our intellectual property rights and defend against alleged intellectual property rights infringement claims; failure to secure and maintain listings in control states; labeling or warning requirements or limitations on the availability of our products; product recalls or other product liability claims; anti-corruption laws, trade sanctions, and restrictions; litigation or legal proceedings; limited rights of common stockholders and anti-takeover provisions in our governing documents; the impact of issuing shares of our common stock; higher costs or the unavailability and cost of raw materials, product ingredients, energy resources, or labor; failure of our information technology systems, networks, processes, associated sites, or service providers; inability to successfully implement our strategies; interest rate increases; reliance on key personnel; impairment charges; commercial, political, and financial risks; covenants and other provisions in our credit arrangements; pandemics or other health crises; ability to pay any dividends and make any share repurchases. For further information on these risks and uncertainties and other factors that could affect the Company’s business, see the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, as well as the Company’s other SEC filings. The Company undertakes no obligation to update any forward-looking statements or information in this press release, except as required by law.

Non-GAAP Financial Measures

In addition to reporting financial information in accordance with U.S. GAAP, the Company provides certain non-GAAP financial measures that are not in accordance with, or alternatives for, GAAP. In addition to the comparable GAAP measures, the Company has disclosed adjusted selling, general, and administrative expenses (“SG&A”), adjusted operating income, adjusted income before income taxes, adjusted net income, adjusted MGP earnings, adjusted EBITDA, net debt, net debt leverage ratio, and adjusted basic and diluted EPS, as well as guidance for adjusted EBITDA and adjusted basic EPS. The presentation of these non-GAAP financial measures should be reviewed in conjunction with SG&A, operating income, income before income taxes, net income, net income used in earnings per common share calculation, debt, and basic and diluted EPS computed in accordance with U.S. GAAP and should not be considered a substitute for the GAAP measure. We believe that the non-GAAP measures provide useful information to investors regarding the Company's performance and overall results of operations. In addition, management uses these non-GAAP measures in conjunction with GAAP measures when evaluating the Company’s operating results compared to prior periods on a consistent basis, assessing financial trends, and for forecasting purposes. Non-GAAP financial measures may not provide information that is directly comparable to other companies, even if similar terms are used to identify such measures. The attached schedules provide a full reconciliation of historical non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure. Full year 2026 guidance measures of adjusted EBITDA and adjusted basic EPS are provided on a non-GAAP basis without a reconciliation to the most directly comparable GAAP measures because the Company is unable to predict with a reasonable degree of certainty certain items contained in the GAAP measures without unreasonable efforts. Such items include without limitation, acquisition related expenses, restructuring and related expenses, and other items not reflective of the Company's ongoing operations.

The non-GAAP adjusted EBITDA measure is defined as earnings before interest expense, income tax expense (benefit), depreciation and amortization, share based compensation, equity method investment loss (gain), executive transition costs, restructuring and other costs, goodwill and other long-lived assets impairment, fair value of contingent consideration, and professional service fees.

See "Reconciliation of selected GAAP measure to adjusted non-GAAP measures" for further details on selected non-GAAP items.

See "Reconciliation of selected GAAP measure to adjusted non-GAAP measures" for further details on selected non-GAAP items.

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