MGP Ingredients, a producer and distributor of distillery and ingredients products headquartered in the US, has posted an increase in its Q1 2012 net income to $1.8m, compared with net income of $700,000 in the same quarter of fiscal 2011.
The company has attributed the rise in its net income for the quarter to higher revenues and a gain associated with sale of joint venture interest.
The ingredients company's gross profit for the first quarter of 2012 was $5.5m on net sales of $86.3m, compared to gross profit of $6.5m in the corresponding quarter of fiscal 2011 on net sales of $64.1m.
For three months ended 31 March 2012, MGP reported selling, general and administrative expenses of $7.74m, an increase from $5.69m in the same period last year.
Sales of the company's ingredient segment for Q1 2012 were $13.5m, almost even with the same sales in Q1 2011.
The segment's pre-tax operating income for the quarter also increased to $1.6m, compared to pre-tax operating income of $100,000 for the first quarter of fiscal 2011, on back of improved average selling prices, a higher value product mix and lower natural gas prices.
MGP Ingredients president and chief executive officer Tim Newkirk said that the company is generating profitable sales attributable to significant changes it made in terms of its product portfolio, cost structure and business processes.
"With initiatives like our new raw materials strategy and the addition of higher value beverages from our newly-acquired Indiana distillery, we are working to improve profitability in subsequent quarters," Newkirk added.
Founded in 1941, MGP Ingredients provides grain-based starches, proteins and food-grade alcohol products for the branded packaged goods industry.
In January 2012, the company has created a new holding company structure, as part of which a new parent company was formed.