MGP Overview and Strategic Focus Areas slide image

MGP Overview and Strategic Focus Areas

CONSOLIDATED FINANCIAL RESULTS - Q3 2023 CONSOLIDATED GROSS PROFIT INCREASED 24% TO $73.4 MILLION . . Sales increased 5% to $211.6 million. Gross profit increased 24% to $73.4 million, representing 34.7% of sales. Operating Income Drivers Third Quarter 2022-23 (SMM) $3.0 $3.9 $7.4 ($2.2) $33.9 ($3.7) MGP Q3 2022 Distilling Solutions GP Branded Spirts GP • • • • Operating income decreased 41% to $19.8 million. Adjusted operating income¹ increased 26% to $42.7 million. Net income decreased 45% to $13.1 million. Adjusted net income¹ increased 28% to $30.2 million. Adjusted EBITDA¹ increased 24% to $48.1 million. Basic earnings per common share ("EPS") decreased to $0.59 per share from $1.07 per share and diluted EPS decreased to $0.58 per share from $1.06 per share. Adjusted Basic EPS¹ increased to $1.36 per share from $1.07 per share and adjusted diluted EPS¹ increased to $1.34 per share from $1.06 per share. 29 Note: Totals may not foot due to rounding. All comparisons are on a year-over-year basis. A&P: Advertising and Promotion expenses. GP: Gross Profit SG&A: Selling, General and Administrative expense ¹Non-GAAP measure; See appendix for GAAP to Non-GAAP Reconciliation 2 Items are net of tax based on the effective tax rate for the base year (2022) $1.07 Ingredient Solutions GP Change in A&P Change in SG&A EPS Drivers2 Third Quarter 2022-23 $19.8 ($18.3) ($4.2) Impairment of long-lived assets and other Change in fair value of contingent consideration $0.05 $0.59 ($0.03) ($0.48) ($0.02) ($0.01) Q3 2023 $0.58 Basic and Diluted EPS Q3 2022 Change in Change in other Change in interest Operating income income (expense), expense, net Change in effective tax rate Basic EPS Q3 2023 Impact of dilutive shares outstanding Dilutive EPS Q3 2023 net
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