ATCHISON, KAS. — Third-quarter sales dropped 1.4% in the Ingredients Solutions segment of MGP Ingredients despite a 5.4% gain in net sales for specialty wheat starches.
Ingredient Solutions’ net sales of $13,615,000 in the quarter ended Sept. 30 compared with $13,815,000 in the previous year’s third quarter. Within Ingredient Solutions, net sales of specialty wheat starches climbed to $7,523,000 from $7,137,000, but net sales in specialty wheat proteins fell 10% to $4,165,000 from $4,609,000 and net sales in commodity wheat starch dropped 11% to $1,575,000 from $1,762,000. Commodity wheat protein net sales climbed 15% to $352,000 from $307,000.
Income before income taxes was $1,002,000 in the third quarter for the Ingredients Solutions segment, which was down 7% from $1,082,000 in the previous year’s third quarter.
|Gus Griffin, president and c.e.o. of MGP Ingredients|
“While segment results were down slightly for the quarter, we were pleased by both the growth in specialty starch net sales, which increased 5.4% over the 2014 quarter, and improved mix, as specialty products accounted for 85.9% of total segment net sales,” said Gus Griffin, president and chief executive officer of Atchison-based MGP Ingredients, when the company reported financial results on Nov. 5. “We remain very confident in the long-term growth potential of our Ingredient Solutions segment.”
Companywide MGP Ingredients had third-quarter net income of $6,771,000, or 38c per share on the common stock, which was up nearly 9% from $6,228,000, or 34c per share, in the previous year’s third quarter. Net sales increased 3.6% to $80,328,000 from $77,515,000.
The company’s Distillery Products segment posted third-quarter net sales of $66,713,000, a 4.7% increase from $63,700,000 in the previous year’s third quarter.Through the first nine months of the fiscal year, MGP Ingredients had net income of $19,712,000, or $1.10 per share, which was up 21% from $16,112,000, or 89c per share, in the same time period of the previous year. Nine-month net sales were $246,095,000, up 3.8% from $237,078,000.