MGPI continues to see benefits of ingredients shake-up

By Caroline Scott-Thomas

- Last updated on GMT

Related tags Net loss

MGP Ingredients has said that its increasing focus on value-added ingredients has contributed to an ongoing turnaround in its finances – reporting a $4.8m net profit for Q2 2010, compared to a $47.7m loss in Q2 2009.

The Kansas-based producer of grain-derived starches, proteins and food-grade alcohols has been forecasting a turnaround in its fortunes since October, when it said it hoped to see the fruits of a new business strategy, focusing more on value-added ingredients like dietary fiber, protein isolates and concentrates, and textured proteins, and moving away from commodity-based ingredients.

The company has said that fiscal 2009 was a “difficult year”, ​having recorded a huge net loss of $69.1m, compared to an $11.7m net loss during 2008 – which had been the company’s first net loss in a decade. It blamed much of this on restructuring costs, as it worked toward pushing its product portfolio in a new direction.

MGP Ingredients’ president and CEO Tim Newkirk said: "In the first quarter of this fiscal year, we essentially completed our business transformation process, followed in the second quarter by the strengthening of our balance sheet. The solid profitability we continued to produce in the second quarter is indicative of the tremendous strides we have made and the potential that lies before us. I am very excited and pleased that 1) we have made such remarkable progress in such a relatively short period of time, and 2) we have a sound structure in place, strategically and organizationally, to grow our business in a more consistently profitable manner."

The company has also cut debt from $38 million at the end of the current year's first quarter to $11 million by the end of the second quarter.

Sales were $44,672,000, down 39 percent from $73,242,000 in the same period a year ago.

MGPI said that most of this decline could be attributed to the company's planned reductions in sales of fuel grade alcohol and commodity ingredients.

Related news

Show more

Related products

show more

Some home truths about real prebiotic dietary fibre

Some home truths about real prebiotic dietary fibre

Content provided by BENEO | 22-Mar-2024 | Product Presentation

Confused about prebiotics? You’re not the only one! Food developers wanting to work with prebiotic dietary fibre are faced with an abundance of products...

Palate Predictions: Top Flavor Trends for 2024

Palate Predictions: Top Flavor Trends for 2024

Content provided by T. Hasegawa USA | 08-Jan-2024 | Application Note

As consumers seek increased value and experience from food and beverages, the industry relies on research to predict category trends. Studying trends that...

Oat Groats – Heat-treated Oat Kernels

Oat Groats – Heat-treated Oat Kernels

Content provided by Lantmännen Biorefineries AB | 06-Dec-2023 | Product Brochure

Lantmännen offers now Oat Groats: Heat-treated oat kernels, also known as oat groats or kilned oats, undergo heat treatment to inhibit enzymes that could...

Related suppliers

Follow us


View more