MGP Ingredients today (8 May) booked a loss for its third quarter despite a 14% year-on-year jump in sales.
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Total sales rose to US$106.7m, with ingredient solutions sales increased by 49% in the quarter, the company said.
However, record wheat prices produced an operating loss of $6.6m. This compares to a profit of $2.2m recorded in the corresponding period last year.
“Just as we are continuing to gain momentum toward achieving record sales of targeted value-added product technologies in our ingredient solutions segment, our earnings for the third quarter were adversely affected by record wheat prices,” said Tim Newkirk, president and CEO.
“In our view, there is less crop risk in global wheat supplies than with corn. Should wheat prices decline to levels experienced during our second quarter, we would anticipate moving toward a stronger sustainable earnings contribution from ingredient solutions going forward,” Newkirk said.
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