MGP Ingredients Inc (MGPI)
Gross profit margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 286,317 | 296,987 | 304,620 | 297,683 | 304,712 | 282,780 | 268,380 | 251,309 | 253,306 | 242,846 | 240,884 | 238,487 | 198,965 | 177,943 | 144,019 | 107,894 | 98,806 | 88,635 | 84,263 | 83,083 |
| Revenue (ttm) | US$ in thousands | 703,625 | 737,717 | 787,880 | 806,076 | 836,523 | 812,630 | 802,152 | 788,133 | 782,358 | 758,210 | 733,675 | 713,632 | 626,720 | 560,788 | 487,141 | 404,762 | 395,521 | 387,069 | 374,790 | 372,731 |
| Gross profit margin | 40.69% | 40.26% | 38.66% | 36.93% | 36.43% | 34.80% | 33.46% | 31.89% | 32.38% | 32.03% | 32.83% | 33.42% | 31.75% | 31.73% | 29.56% | 26.66% | 24.98% | 22.90% | 22.48% | 22.29% |
December 31, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $286,317K ÷ $703,625K
= 40.69%
MGP Ingredients Inc has shown a gradual and positive trend in its gross profit margin over the five-year period from March 31, 2020, to December 31, 2024. The gross profit margin increased from 22.29% in March 2020 to 40.69% in December 2024. This indicates that the company has been able to effectively control its cost of goods sold relative to its revenue, resulting in a higher percentage of revenue available to cover operating expenses and generate profit.
The gross profit margin experienced fluctuations throughout the period, with some quarters showing more significant improvements compared to others. For example, there was a notable increase from 26.66% in March 2021 to 31.75% in December 2021, signaling improved profitability during that timeframe. Similarly, the gross profit margin peaked at 40.69% in December 2024, reflecting the company's ability to optimize its production and pricing strategies to enhance overall profitability.
Overall, the consistent upward trend in the gross profit margin suggests that MGP Ingredients Inc has been successful in managing its production costs and maximizing its profitability over the years covered in the data. This improvement in gross profit margin could be attributed to various factors such as operational efficiencies, pricing strategies, cost control measures, and economies of scale.