ATCHISON, KANSAS, US — The December 2023 closing of the company’s Atchison distillery dragged down earnings and sales at MGP Ingredients, Inc. in the first quarter.

Net income at MGP Ingredients, Inc. fell 34% in the first quarter ended March 31, falling to $20.64 million, equal to 92¢ per share on the common stock, from $31.07 million, or $1.40 per share, in the same period a year ago. Net sales decreased 15% to $170.56 million from $201.01 million.

David Bratcher, president and chief executive officer, said the promotion of Amel Pasagic to the newly created position of chief commercial officer and the commissioning of the company’s newly built wheat protein facility in Atchison, coupled with several new brand initiatives, stood out as highlights for the company during the quarter.

Gross profit in the Ingredient Solutions segment decreased to $6.2 million from $12.2 million in the first quarter of fiscal 2023, while sales increased 15% to $35.6 million.

“(Ingredient Solutions) sales for the quarter were a record and primarily reflect continued rising consumer preference toward high-protein low net carb diets, which drove higher sales of our specialty products,” Bratcher said during a May 2 conference call with analysts. “We expect to see this trend continue in upcoming quarters as can be seen by anyone visiting their local grocery store and seeing the proliferation of keto and low net carb alternatives, which ties well to our Ingredient Solutions growth strategy. In addition, we are extremely proud of the grand opening of our textured protein facility, which was dedicated to Ladd Seaberg (former CEO).”