the highest quality ingredients from the most reputable suppliers in the world at affordable prices. The majority of Healthy Origins products are manufactured using patented, branded ingredients supported by years of scientific research and clinical studies.## ContactsMedia contact: Ashley Bright [asbright@coupanginc.com]Industry:- [Logistics/Supply Chain Management]- [Transport]- [Retail]- [Food/Beverage]- [Delivery Services]- [Small Business]- [Technology]- [Electronic Commerce]- [Fintech]- [Online Retail ...

Financial Data and Key Metrics Changes - For Q4 2025, the company reported a net income of $11.9 million, or $0.17 per diluted share, compared to a net loss of $54.9 million, or -$0.86 per diluted share in Q4 2024 [12] - Adjusted EBITDA for Q4 2025 was $49.1 million, an improvement of over $67 million compared to Q4 2024's adjusted EBITDA of -$18.2 million [6][13] - Revenue for Q4 2025 was $428.8 million, down 26.6% year-over-year due to the impact of the Obion plant sale and idling of the Fairmont facility [14] Business Line Data and Key Metrics Changes - The company increased its maximum production capacity to 730 million gallons per year, a 10% increase from the previous capacity [5] - Four plants reached historical production volumes, and seven plants achieved record ethanol yields [4] - The startup of CO2 compression equipment at three Nebraska plants is now fully operational, contributing to cash flow and lowering carbon intensity (CI) scores [6] Market Data and Key Metrics Changes - Ethanol margins remained resilient in Q4 2025 due to strong domestic blending and export demand, supported by a record corn crop [20] - Ethanol exports set a record last year, with expectations for increased demand in 2026 [21] - Corn oil markets remained steady, contributing positively to gross margins, while protein pricing faced pressure [21] Company Strategy and Development Direction - The company is focusing on five strategic priorities: improving energy efficiency, evaluating carbon sequestration opportunities, debottlenecking or expanding facilities, increasing on-site grain storage, and balancing capital structure [23][24] - The company aims to be a low-cost, low-carbon biofuels producer, with ongoing projects to reduce energy consumption and operational costs [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational execution and the potential for carbon monetization, with expectations of at least $188 million of adjusted EBITDA from carbon-related activities in 2026 [8][9] - The company is optimistic about the regulatory environment supporting biofuels and the potential for year-round E15 adoption [9][62] Other Important Information - The company refinanced a majority of its 2027 convertible notes through a new $200 million convertible note due in 2030 [13] - Consolidated liquidity at the end of the quarter included $230.1 million in cash equivalents and restricted cash, with $325 million in working capital revolver availability [18] Q&A Session Summary Question: Interest in 2026 45Z credits - Management confirmed active marketing of 2026 45Z credits and expressed confidence in the platform's ability to deliver credits [28] Question: Upside potential for carbon opportunities - Management indicated numerous plant efficiency projects with fast returns and potential for additional investments to lower energy consumption [29][30] Question: Q4 cash flow from operations - Management explained that Q4 cash flow was lower than EBITDA due to timing of cash receipts from carbon earnings and accelerated receivables [33] Question: Q1 ethanol EBITDA outlook - Management noted that while Q1 is typically a low point, the company is in a better position compared to the previous year, with strong operational efficiency [35] Question: CI score and potential improvements - Management discussed the potential for further reductions in CI scores due to new guidance and ongoing projects [51][52]

Company Performance - The turnaround plans for the company are showing positive results, with systemwide same-store sales rising by 4% and U.S. same-store sales increasing by 4%, while China saw a 7% increase [1] - Improved operations, including the rollout of new operating standards, have boosted service speed and customer satisfaction, leading to increased customer return rates [1] Cost Management - The company has identified $2 billion in annual costs to target over the next 1 to 2 years, as margins have been impacted despite increased same-store sales and traffic [4] - The strategy of reallocating labor into stores has been effective in driving customer traffic but has also led to margin compression [5] Competitive Landscape - The competitive environment is described as being tougher than ever, with younger chains like Dutch Bros and Seven Brew gaining popularity among Gen Z [6] - High-end coffee shops are also increasing competition by offering quality coffee and elevated food experiences, prompting the company to make strategic changes [7] Innovation and Marketing - The company is focusing on food innovation, including new protein and cold foam offerings, which have positively impacted same-store sales [2] - There is an emphasis on improving food quality and introducing innovative drink offerings to enhance the customer experience throughout the day [8]

Core Insights - MGP Ingredients, Inc. announced the retirement of Karen Seaberg from its Board of Directors after over 15 years of service, effective December 14, 2025, and the appointment of Julie Francis as a new director, effective December 15, 2025 [1][2][3] Group 1: Leadership Transition - Karen Seaberg has served as a long-standing director and Chairman of the Board from 2014 to 2024, providing leadership during significant growth and transformation periods for the company [2] - Julie Francis, the current CEO, has been recognized for her strong leadership and strategic focus, which is expected to enhance the Board's effectiveness as the company continues to execute its long-term strategy [3] Group 2: Company Background - MGP Ingredients, Inc. has been operational since 1941, focusing on the alcoholic beverage and specialty ingredient industries through three segments: Branded Spirits, Distilling Solutions, and Ingredient Solutions [4] - The company is a leading spirits distiller with a portfolio of premium brands, including Penelope, Rebel, Remus, and Yellowstone bourbons, as well as El Mayor tequila, and operates distilleries in Indiana and Kentucky [4]

Core Insights - The company reported a year-to-date non-COVID organic growth of 16% in Q3, indicating strong performance and satisfaction with results [1] - The diverse and innovative product portfolio is highlighted, with analytics and protein franchises exceeding expectations in Q3 [1] - The company aims to grow more than 5% above market growth, with projections indicating significant outperformance this year [1]

Financial Data and Key Metrics Changes - The company reported a net loss of $72.9 million or a loss of $1.14 per share for Q1 2025, compared to a net loss of $51.4 million or $0.81 per share in Q1 2024 [23][24] - Revenue for the quarter was $601.5 million, up 0.7% year over year [24] - Adjusted EBITDA excluding restructuring charges was a loss of $24.2 million, compared to a negative $21.5 million in Q1 last year [25] Business Line Data and Key Metrics Changes - The company achieved a record 100% utilization rate across its nine operating plants, demonstrating strong asset performance [25] - The anticipated decline in SG&A run rate is from $118 million in 2024 to an estimated $93 million annualized by year-end [7][26] - The company achieved $30 million in annualized cost savings and an additional $15 million from a new ethanol marketing partnership [6][26] Market Data and Key Metrics Changes - U.S. ethanol exports are expected to surpass last year's record of nearly 2 billion gallons in 2025 [17] - Ethanol margins have strengthened heading into Q2 and Q3, supported by firmer corn oil fundamentals and anticipated increases in renewable volume obligations [17][19] - Current ethanol inventory levels are at 25 million barrels, with expectations to drop towards 23 million as the driving season begins [82] Company Strategy and Development Direction - The company is focused on returning to sustained profitability through disciplined execution and operational excellence [4][5] - A strategic marketing partnership with EcoEnergy aims to enhance scale and optimize transportation and marketing economics [19][69] - The company is pausing its clean sugar technology initiative to maximize profitability from existing operations while addressing wastewater management challenges [15][108] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive EBITDA for the remainder of the year, driven by cost reductions and improved market conditions [34][78] - The carbon strategy remains on track, with construction of carbon compression infrastructure advancing as planned [30][31] - The company is actively engaged in monetizing its carbon credits and expects to provide updates in future calls [31][34] Other Important Information - The company has executed a $30 million line of credit to enhance liquidity and support ongoing operations [28][72] - Capital expenditures in Q1 were $16.7 million, with expectations for the remainder of 2025 to be around $20 million [29] Q&A Session Summary Question: Update on hedging practices and risk management - Management confirmed the reestablishment of hedging practices to manage risk effectively, utilizing analytics and market opportunities [39][41] Question: Status of CEO search - The CEO search is ongoing, with a focus on candidates who can align with the company's strategic direction [44] Question: Impact of carbon capture construction timeline - Construction is on track for early Q4 startup, with no anticipated delays [48] Question: Tariff impacts on product exports - Currently, there have been no adverse impacts from tariffs, and the company is optimistic about potential new market opportunities [49][50] Question: Profit contribution from corn oil and protein platforms - Corn oil prices have improved, and the company expects continued support for margins from this segment [86][89] Question: Details on non-core asset sales - The company is focused on exiting non-core assets to streamline operations and improve focus on core business [77][78]