MGP INGREDIENTS INCMGPI
MGP INGREDIENTS INC Segments Disclosure
OPERATING SEGMENTS
(a)As of December 31, 2025 and 2024, the Company had $5,120 and $4,042, respectively, of long-lived assets located in Northern Ireland.
At December 31, 2025, the Company had three segments: Branded Spirits, Distilling Solutions, and Ingredient Solutions. The Company’s operating segments are based on the financial information the chief operating decision maker uses to allocate resources and evaluate performance of the business. During the year ended December 31, 2025, the chief operating decision maker was the Company’s Chief Executive Officer. The Branded Spirits segment consists of a portfolio of high quality branded spirits which are produced through the distilleries and bottling facilities. The Distilling Solutions segment consists of food grade alcohol (primarily brown goods) and distillery co-products, such as distillers feed (commonly called dried distillers grain in the industry). The Distilling Solutions segment also includes warehouse services, such as barrel put away, barrel storage, and barrel retrieval services. The Ingredient Solutions segment consists of specialty starches and proteins as well as commodity starches and proteins. Intersegment sales and transfers are recorded at cost and are treated as a transfer of inventory. All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance.
Operating income for each segment is based on sales less identifiable operating expenses. The CODM used the operating income to evaluate the segment profitability and to assess the actual results compared to the budget. Non-direct selling, general, and administrative expenses (“SG&A”), non-direct advertising and promotion expense, interest expense, and other general miscellaneous expenses are classified as Corporate. Receivables, inventories, and equipment have been identified with the segments to which they relate. All other assets are considered as Corporate.
The following tables present summarized financial information for each segment:
| Year Ended December 31, 2025 | |||||||||||||||||||||||||||||
| Branded Spirits | Distilling Solutions | Ingredient Solutions | Corporate | Total | |||||||||||||||||||||||||
Sales(a) | $ | 232,941 | $ | 181,400 | $ | 122,034 | $ | — | $ | 536,375 | |||||||||||||||||||
| Cost of Goods Sold | 117,621 | 112,798 | 106,547 | — | 336,966 | ||||||||||||||||||||||||
| Gross Profit | 115,320 | 68,602 | 15,487 | — | 199,409 | ||||||||||||||||||||||||
| Advertising and promotion expense | 29,231 | 696 | 1,036 | 120 | 31,083 | ||||||||||||||||||||||||
| SG&A expense | 35,647 | 2,827 | 3,937 | 42,408 | 84,819 | ||||||||||||||||||||||||
Goodwill and indefinite-lived intangible asset impairment | 152,622 | — | — | — | 152,622 | ||||||||||||||||||||||||
| Change in fair value of contingent consideration | 25,500 | — | — | — | 25,500 | ||||||||||||||||||||||||
Operating income (loss) | $ | (127,680) | $ | 65,079 | $ | 10,514 | $ | (42,528) | $ | (94,615) | |||||||||||||||||||
| Depreciation and amortization | $ | 8,607 | $ | 8,177 | $ | 5,899 | $ | 1,403 | $ | 24,086 | |||||||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||||||||||||||
| Branded Spirits | Distilling Solutions | Ingredient Solutions | Corporate | Total | |||||||||||||||||||||||||
Sales(a) | $ | 240,816 | $ | 332,204 | $ | 130,605 | $ | — | $ | 703,625 | |||||||||||||||||||
| Cost of Goods Sold | 122,620 | 190,277 | 104,411 | — | 417,308 | ||||||||||||||||||||||||
| Gross Profit | 118,196 | 141,927 | 26,194 | — | 286,317 | ||||||||||||||||||||||||
| Advertising and promotion expense | 36,909 | 1,352 | 1,714 | 533 | 40,508 | ||||||||||||||||||||||||
| SG&A expense | 39,711 | 2,970 | 3,949 | 34,761 | 81,391 | ||||||||||||||||||||||||
| Impairment of long-lived assets and other | — | 137 | — | — | 137 | ||||||||||||||||||||||||
| Goodwill impairment | 73,755 | — | — | — | 73,755 | ||||||||||||||||||||||||
| Change in fair value of contingent consideration | 16,100 | — | — | — | 16,100 | ||||||||||||||||||||||||
Operating income (loss) | $ | (48,279) | $ | 137,468 | $ | 20,531 | $ | (35,294) | $ | 74,426 | |||||||||||||||||||
| Depreciation and amortization | $ | 8,035 | $ | 7,893 | $ | 4,711 | $ | 1,350 | $ | 21,989 | |||||||||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||||||||||||||
| Branded Spirits | Distilling Solutions | Ingredient Solutions | Corporate | Total | |||||||||||||||||||||||||
Sales(a) | $ | 253,933 | $ | 450,854 | $ | 131,736 | $ | — | $ | 836,523 | |||||||||||||||||||
| Cost of Goods Sold | 141,152 | 305,890 | 84,769 | — | 531,811 | ||||||||||||||||||||||||
| Gross Profit | 112,781 | 144,964 | 46,967 | — | 304,712 | ||||||||||||||||||||||||
| Advertising and promotion expense | 34,463 | 1,127 | 2,400 | 223 | 38,213 | ||||||||||||||||||||||||
| SG&A expense | 37,389 | 2,301 | 3,838 | 47,867 | 91,395 | ||||||||||||||||||||||||
| Impairment of long-lived assets and other | — | 19,391 | — | — | 19,391 | ||||||||||||||||||||||||
| Change in fair value of contingent consideration | 7,100 | — | — | — | 7,100 | ||||||||||||||||||||||||
Operating income (loss) | $ | 33,829 | $ | 122,145 | $ | 40,729 | $ | (48,090) | $ | 148,613 | |||||||||||||||||||
| Depreciation and amortization | $ | 6,952 | $ | 11,833 | $ | 2,574 | $ | 754 | $ | 22,113 | |||||||||||||||||||
(a)Sales from foreign sources totaled $36,497, $36,240, and $49,822 for the years ended December 31, 2025, 2024, and 2023, respectively, and are largely derived from the United Kingdom, Japan, Canada, Mexico, and Australia. The balance of total sales is from domestic sources.
The following table allocates assets to each segment as of:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Identifiable Assets | |||||||||||
| Branded Spirits | $ | 734,459 | $ | 862,458 | |||||||
| Distilling Solutions | 342,449 | 382,432 | |||||||||
| Ingredient Solutions | 133,807 | 132,003 | |||||||||
| Corporate | 25,149 | 28,892 | |||||||||
Total(a) | $ | 1,235,864 | $ | 1,405,785 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 8, 2017 | |
| 2015 | Mar 10, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.