Branded Spirits Acquisition of Penelope Bourbon slide image

Branded Spirits Acquisition of Penelope Bourbon

DISTILLING SOLUTIONS PLANNED CLOSURE OF THE ATCHISON DISTILLERY Pro-Forma Results(), excluding the Atchison Distillery Consolidated FY 2022 Ytd September 30, 2023 Pro-Forma (1) Change Pro-Forma (1) Change Sales $641.5 ($140.8) $534.7 ($87.0) Gross Profit $253.9 $0.6 $222.0 $2.4 Gross Margin 39.6% 7.2 pp(2) 41.5% 6.2 pp(2) Distilling Solutions FY 2022 Ytd September 30, 2023 • Pro-Forma (¹) Change Pro-Forma (1) Change Sales $287.7 ($140.8) Gross Profit $132.4 $6.1 Gross Margin 46.0% 16.5 pp(2) $255.0 $112.5 44.1% ($87.0) $7.6 13.4 pp(2) Ingredient Solutions FY 2022 Pro-Forma (1) Change Sales $115.9 $- Ytd September 30, 2023 Pro-Forma (¹) Change $98.4 $- Gross Profit $26.0 ($5.5) $29.8 ($5.1) Gross Margin 22.4% (4.8) pp(2) 30.3% (5.2) pp(2) MGP Overview of Expected One-Time Expenses Expect to incur one-time aggregate pre-tax charges of approximately $23 million - $31 million for fiscal year 2023. This range includes the following estimates $17 - $21 million in non-cash restructuring expenses for asset impairments (fixed assets, inventory, leases) As of 9/30/2023, incurred $17.1 million of impairments $2-$4 million in cash expenses for items such as severance costs, contract termination fees and consulting fees • As of 9/30/2023, incurred $1.2 million in one-time expenses $4 - $6 million in capital expenditures to decouple the Atchison distillery from the Ingredient Solutions business facility also located in Atchison, KS Anticipate approximately $6 million in capital expenditures related to the decoupling of the distillery for fiscal year 2023 1. 10 2. Pro-Forma results exclude results associated with the Atchison distillery. See appendix for more information Percentage points ("pp")
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