MGP Ingredients Inc (MGPI) 2024 Q2 法說會逐字稿

Good day, and welcome to the MGP Ingredients second-quarter 2024 financial results conference call. (Operator Instructions)

美好的一天，歡迎參加 MGP Ingredients 2024 年第二季財務業績電話會議。（操作員說明）

Please note this event is being recorded. I would now like to turn the conference over to Amit Sharma VP of Investor Relations. Please go ahead.

請注意此事件正在被記錄。我現在想將會議交給投資者關係副總裁阿米特夏爾馬 (Amit Sharma)。請繼續。

Thank you. I'm Amit Sharma, Vice President of Investor Relations, and joining me are members of the management team, including David Bratcher Chief Executive Officer, and President, and Bran Gall Chief Financial Officer. We will begin the call with management's prepared remarks and then open the call to questions.

謝謝。我是投資者關係副總裁 Amit Sharma，與我一起的還有管理團隊成員，包括執行長兼總裁 David Bratcher 和財務長 Bran Gall。我們將以管理階層準備好的發言開始電話會議，然後開始提問。

As a reminder, this call may include certain forward-looking statements and the company's actual results could differ materially from any forward-looking statements made today due to a number of factors, including the risk factors described in the company's most recent annual report filed with the SEC.

提醒一下，本次電話會議可能包含某些前瞻性陳述，並且由於多種因素，包括公司向其提交的最新年度報告中描述的風險因素，公司的實際結果可能與今天做出的任何前瞻性陳述存在重大差異。

The company assumes no obligation to update any forward-looking statements made during the call except as required by the law. Additionally, this call will contain references to certain non-GAAP measures, which we believe are useful in evaluating the company's performance. Indeed, conciliation of these measures to the most directly comparable GAAP measures is included in today's earnings release.

除法律要求外，該公司不承擔更新電話會議期間所做的任何前瞻性陳述的義務。此外，本次電話會議將引用某些非公認會計準則衡量標準，我們認為這些衡量標準有助於評估公司的表現。事實上，今天的收益報告中包含了這些指標與最直接可比較的公認會計準則指標的調整。

The press release is available on MGPI's website at www.mgpingredients.com. This call is being webcast and a replay will be available on our website.

新聞稿可在 MGPI 網站 www.mgpingredients.com 上取得。該電話會議正在網路直播，我們的網站上將提供重播。

With that, I would like to turn the call over to MGP's Chief Executive Officer and President David Bratcher. David?

說到這裡，我想將電話轉給 MGP 執行長兼總裁 David Bratcher。大衛？

Thank you, Amit. We are excited to have you onboard to lead our Investor Relations efforts as we continue to add strong talent throughout our organization, including two other recent hires, David Colyott as EVP of Operations; and Paul Lux as VP of Sales for Distilling Solutions.

謝謝你，阿米特。我們很高興您加入來領導我們的投資者關係工作，因為我們將繼續在整個組織中增加強大的人才，其中包括最近聘用的另外兩名員工：擔任營運執行副總裁的David Colyott；以及擔任營運執行副總裁的David Colyott。 Paul Lux 擔任蒸餾解決方案銷售副總裁。

Good morning, everyone. I will begin with an overview of our second-quarter performance and provide updates on key performance metrics and initiatives. I will then turn it over to Brandon to discuss our quarterly results in greater detail.

大家早安。我將首先概述我們第二季的業績，並提供關鍵業績指標和計劃的最新資訊。然後我會將其交給布蘭登，以更詳細地討論我們的季度業績。

We will wrap up with a discussion of our outlook for the full year before we open it up for questions. We delivered another quarter of strong operating results as we continue to make consistent progress towards becoming a premier branded spirits company. We successfully recommissioned our Lux Row Distillers, giving us additional distilling capacity in Bardstown, Kentucky to continue to support our branded whiskey growth.

在開始提問之前，我們將討論全年的前景。隨著我們繼續在成為一流品牌烈酒公司方面取得持續進展，我們又取得了強勁的經營業績。我們成功地重新啟用了 Lux Row 蒸餾器，為我們在肯塔基州巴茲敦提供了額外的蒸餾能力，以繼續支持我們品牌威士忌的成長。

Our first half 2024 results were in line with our expectations and a leading us to reaffirm our full year sales, EBITDA and EPS guidance, specific to second quarter 2024 on a pro forma basis, when factoring in Atchison distillery closure consolidated sales increased by 7%, driven by the ongoing momentum of our branded spirits business and solid brown goods sales within our Distilling Solutions segment.

我們的2024 年上半年業績符合我們的預期，這促使我們重申我們的全年銷售額、息稅折舊攤銷前利潤(EBITDA) 和每股收益(EPS) 指導，具體針對2024 年第二季度的預估，考慮到艾奇遜酒廠關閉，綜合銷售額增長了7% ，受到我們的品牌烈酒業務和蒸餾解決方案部門的固體棕色產品銷售的持續增長勢頭的推動。

As a reminder, prior year reported sales included Atchison distillery related sales. At the segment level, the storage solutions pro forma sales grew by 9%. We posted our highest ever quarterly brown goods sales, driven by new discipline as expected sales of brown goods during the first half of 2024 or more heavily weighted towards the second quarter.

提醒一下，上一年報告的銷售額包括艾奇遜釀酒廠相關的銷售額。在細分市場層面，儲存解決方案預計銷售額將成長了 9%。在新規定的推動下，我們公佈了有史以來最高的季度棕色商品銷售額，因為預計 2024 年上半年或第二季度的棕色商品銷售額將更加重要。

And we expect the same order pattern to play out in the second half of 2024. I am proud of our sales team for their nimbleness as they continue to work with our branded customers to help them successfully adapt to the current consumption and inventory patterns at distributor and retailer levels.

我們預計 2024 年下半年將出現相同的訂單模式。我為我們的銷售團隊的靈活性感到自豪，他們繼續與我們的品牌客戶合作，幫助他們成功適應經銷商和零售商層面當前的消費和庫存模式。

I believe we are uniquely positioned to thrive in the current environment given our competitive facility footprint, long track record of producing high-quality age and new discipline and our extensive roster of large multinational and craft customers.

我相信，鑑於我們具有競爭力的設施足跡、生產高品質時代和新學科的長期記錄以及我們廣泛的大型跨國公司和工藝品客戶名冊，我們處於獨特的地位，可以在當前環境中蓬勃發展。

Turning to the branded spirits segment, quarterly sales increased by 11%, driven by strong innovation focus execution, higher investments behind our key brands and contributions from M&A. Our strong branded trends reflect our continued shift to a premium portfolio as our premium plus portfolio. Now accounts for 48% of branded spirits segment sales well above its 30% contribution for the full year 2021.

談到品牌烈酒領域，在強大的創新重點執行、主要品牌背後的投資增加以及併購貢獻的推動下，季度銷售額增長了 11%。我們強大的品牌趨勢反映了我們不斷轉向高端產品組合作為我們的高端+產品組合。目前佔品牌烈酒細分市場銷售額的 48%，遠高於 2021 年全年 30% 的貢獻。

It's a testament to our focused strategy of preimmunizing our portfolio to align it with an evolving consumer taste across the alcoholic beverage industry and to leverage our improving capabilities and talent throughout our branded organization.

這證明了我們的重點策略，即對我們的產品組合進行預先免疫，使其適應整個酒精飲料行業不斷變化的消費者口味，並利用我們整個品牌組織不斷提高的能力和人才。

As expected, quarterly sales for the rest of the branded spirits segment declined modestly. Distributor inventories for our branded portfolio remain relatively stable, even below historical levels. In some case, we continue to work closely with our partners to invest behind our premium-plus brands and innovation to drive impactful retail execution, increased brand awareness and fill distribution whitespace in targeted markets.

正如預期的那樣，其他品牌烈酒領域的季度銷售額略有下降。我們品牌產品組合的經銷商庫存保持相對穩定，甚至低於歷史水準。在某些情況下，我們繼續與合作夥伴密切合作，投資我們的高端品牌和創新，以推動有影響力的零售執行、提高品牌知名度並填補目標市場的分銷空白。

Our Ingredient Solutions segment sales declined 3% as lower commodity starch and specialty protein sales were partially offset by a strong double digit increase in our specialty starch sales. While a stronger US dollar impacted our quarterly sales.

我們的原料解決方案部門銷售額下降了 3%，因為商品澱粉和特殊蛋白質銷售額的下降被我們特種澱粉銷售額兩位數的強勁增長所部分抵消。雖然美元走強影響了我們的季度銷售額。

Our fibers, Sam brand, especially Spark starches, which provide FDA approved dietary fiber, continue to benefit from long term consumer-driven tailwinds across several large food categories.

我們的 Sam 品牌纖維，尤其是 Spark 澱粉，提供 FDA 批准的膳食纖維，繼續受益於多個大型食品類別的長期消費者驅動的順風車。

Turning to gross margin, quarterly gross margins increased to 43.6%, which is an all-time high for MGP branded spirits segment gross margins exceeded 50% for the first time since the Luxco merger while distilling solution gross margins increased to 45.5% as we continued to benefit from our decision to close the Atchison distillery.

毛利率方面，季度毛利率增至 43.6%，這是 MGP 品牌烈酒業務毛利率的歷史新高，自 Luxco 合併以來首次突破 50%，而蒸餾解決方案毛利率則增至 45.5%。奇遜釀酒廠的決定中受益。

I am very pleased with our gross margin trajectory as it validates our strategic actions and reflects tangible progress in our objective to becoming a higher margin branded spirits company.

我對我們的毛利率軌跡非常滿意，因為它驗證了我們的策略行動，並反映出我們在成為利潤率更高的品牌烈酒公司的目標方面取得了切實進展。

Our continued focus on execution and cost discipline enabled quarterly adjusted EBITDA growth of 7%, even though A&P expenses increased by 35% as we continued to invest behind our premium-plus price brands.

我們對執行和成本紀律的持續關注使得季度調整後的 EBITDA 成長了 7%，儘管由於我們繼續投資於我們的溢價品牌，廣告及費用支出增加了 35%。

Second quarter adjusted earnings per share increased by nearly 15% to $1.71 per share. Our first half results were in line with our expectations, enabling us to reaffirm our full year top line and profit guidance for the year, and I believe we remain well positioned to deliver even stronger profits and earnings growth for the second half of 2024.

第二季調整後每股盈餘成長近 15% 至每股 1.71 美元。我們上半年的業績符合我們的預期，使我們能夠重申全年營收和利潤指引，我相信我們仍然處於有利地位，可以在 2024 年下半年實現更強勁的利潤和盈利增長。

In summary, we are executing our strategic priorities to build a premier branded spirits company. I believe we are uniquely positioned with the right mix of distilling assets, growing brands and a strong team to deliver long-term growth and shareholder value.

總之，我們正在執行策略重點，打造一流的品牌烈酒公司。我相信，我們擁有獨特的定位，擁有正確的蒸餾資產組合、不斷發展的品牌和強大的團隊，可以實現長期成長和股東價值。

With that, let me turn it over to Brandon for a review of our quarterly financial results and full year outlook in greater detail. Brandon.

接下來，讓我將其交給布蘭登，以更詳細地審查我們的季度財務業績和全年展望。布蘭登.

Thanks, David. For the second-quarter of 2024, consolidated sales decreased 9% compared to the prior year period to $190.8 million, primarily due to the Atchison distillery closure. Excluding the impact of the apps and distillery, consolidated sales increased by 7%, driven by higher distilling solutions sales and the continued momentum in our premium-plus branded portfolio.

謝謝，大衛。2024 年第二季度，綜合銷售額較上年同期下降 9%，至 1.908 億美元，主因是艾奇遜酒廠關閉。排除應用程式和釀酒廠的影響，在蒸餾解決方案銷售額增加以及我們的高端品牌產品組合持續增長的推動下，綜合銷售額增長了 7%。

Within the distilling Solutions segment, sales decreased 20% to $93.4 million due to the Atchison distillery quote, excluding the impact of the Atchison distillery in both periods. Segment sales increased 9% from the prior year quarter.

在蒸餾解決方案部門，由於艾奇遜酒廠的報價，銷售額下降了 20% 至 9,340 萬美元，不包括艾奇遜酒廠在這兩個時期的影響。部門銷售額較去年同期成長 9%。

Brown goods sales were up 3%, driven primarily by the planned strong increase in our new display sales and the timing of customer purchases. As David mentioned in his comments, our warehouse related sales increased by 24% to their highest ever second quarter level, reflecting a higher proportion of new distillate sales volumes.

棕色商品銷售額成長了 3%，這主要是由於我們的新展示品銷售計劃強勁增長以及客戶購買時機的推動。正如 David 在評論中提到的，我們的倉庫相關銷售額增長了 24%，達到第二季度的最高水平，反映出新餾分油銷量的比例更高。

Branded spirits segment sales increased by 11%, mainly due to our premium plus portfolio, including the contribution from last year's Penelope acquisition. Premium Plus portfolio sales increased 29% while lapping 29% growth in the year ago quarter, reflecting strong performance of our premium priced brands. Our mid to value branded sales were relatively flat due to easier year-ago comparisons.

品牌烈酒部門銷售額成長了 11%，主要得益於我們的高端產品組合，包括去年收購 Penelope 的貢獻。Premium Plus 產品組合銷售額成長 29%，而去年同期成長 29%，反映出我們的優質品牌的強勁表現。由於與去年同期的比較較容易，我們的中價值品牌銷售量相對持平。

Consolidated gross profit increased 9% to $83.2 million, representing 43.6% of sales. Excluding the impact of the Atchison distillery second quarter, consolidated gross margin improved approximately 80 basis points from the prior year period as we delivered record gross margins of 52.5% in the branded spirits segment and continued to benefit from higher margins in the Distilling Solutions segment.

綜合毛利潤成長 9%，達到 8,320 萬美元，佔銷售額的 43.6%。排除艾奇遜釀酒廠第二季度的影響，綜合毛利率比去年同期提高了約80 個基點，因為我們在品牌烈酒領域實現了創紀錄的52.5% 毛利率，並繼續受益於蒸餾解決方案領域更高的利潤率。

Excluding the impact of the Atchison distillery ingredient solutions, gross margin declined nearly 800 basis points from prior year primarily due to incremental costs incurred to commercialize the wheat starch stream. However, on a sequential basis, segment gross margin increased 400 basis points from the first quarter, primarily due to sequentially higher specialty protein sales.

排除艾奇遜酒廠配料解決方案的影響，毛利率較前一年下降近 800 個基點，主要是由於小麥澱粉流商業化產生的增加成本。然而，從環比來看，該部門的毛利率較第一季成長了 400 個基點，這主要是由於特種蛋白銷售額較上季增加。

Advertising and promotion expenses increased $3 million to $11.7 million due to increased support of our premium-plus portfolio. Branded spirits related A&P totaled $10.8 million and represented 17% of segment sales.

由於我們加大了對優質產品組合的支持，廣告和促銷費用增加了 300 萬美元，達到 1,170 萬美元。與 A&P 相關的品牌烈酒總計 1,080 萬美元，佔該部門銷售額的 17%。

We remain committed to investing behind our faster growing higher margin premium plus price tier brands in our effort to capture greater share of the American whiskey and tequila categories.

我們仍然致力於投資我們成長更快、利潤率更高的溢價加價位品牌，並努力在美國威士忌和龍舌蘭酒類別中佔據更大份額。

Operating income for the second quarter decreased 2% to $43.4 million, while adjusted operating income increased 12% to $51.3 million as higher gross profits and lower SG&A costs more than offset higher A&P invest.

第二季營業收入下降 2%，至 4,340 萬美元，而調整後的營業收入增加 12%，至 5,130 萬美元，原因是毛利的增加和 SG&A 成本的降低足以抵消 A&P 投資的增加。

Net income for the second quarter remained flat at $32 million, while adjusted net income increased 15% to $38 million. Basic and diluted earnings per share decreased to $1.43 per share from $1.44 per share adjusted basic and diluted EPS increased to $1.71 per share from $1.49 per share. Adjusted EBITDA increased 7% compared to the year ago period to $57.5 million.

第二季淨利持平於 3,200 萬美元，調整後淨利成長 15% 至 3,800 萬美元。每股基本和稀釋收益從每股 1.44 美元下降至每股 1.43 美元，調整後基本和稀釋每股收益從每股 1.49 美元增加至每股 1.71 美元。調整後 EBITDA 較去年同期成長 7%，達到 5,750 萬美元。

Moving to cash flow, year-to-date, cash flow from operations was $29.6 million, up from $20.2 million in the prior year period, mainly due to favorable working capital, including lower barrel put away, our balance sheet remains healthy, and we remain well capitalized with debt totaling $309.4 million and a cash position of $21 million.

轉向現金流，今年迄今，營運現金流為2,960 萬美元，高於上年同期的2,020 萬美元，這主要是由於良好的營運資本，包括較低的庫存儲備，我們的資產負債表保持健康，而且我們資本充足，債務總額為 3.094 億美元，現金部位為 2,100 萬美元。

Our net debt leverage ratio remained largely stable at approximately 1.4 times at the end of the quarter. Capital expenditures were $9.4 million during the quarter and $22.6 million during the first half. We continue to expect full year capital expenditures of approximately $85 million for maintenance and IT and initiatives to support our future growth.

截至本季末，我們的淨負債槓桿比率基本上穩定在 1.4 倍左右。本季資本支出為 940 萬美元，上半年資本支出為 2,260 萬美元。我們仍然預計全年資本支出約為 8500 萬美元，用於維護和 IT 以及支持我們未來成長的措施。

These initiatives include additional whiskey warehouses, dryer investment at the Lux Row Distillers of any fuel plant in Atchison to better monetize the waste stream in our Ingredient Solutions segment. Recall that with the closure of the Atchison distillery, we expect to incur $4 million to $6 million of additional costs in 2024 related to treatment and disposal of the waste stream.

這些舉措包括額外的威士忌倉庫、對艾奇遜任何燃料廠的 Lux Row 蒸餾器的乾燥機投資，以更好地利用我們成分解決方案部門的廢物流貨幣化。回想一下，隨著艾奇遜釀酒廠的關閉，我們預計到 2024 年將產生 400 萬至 600 萬美元的與廢物流處理和處置相關的額外成本。

Many fuel plants should eliminate these costs by converting the wheat starch stream into a partial product as part of our overall capital allocation strategy, we remain focused on organic and acquisitive growth opportunities that align with our long-term strategy of becoming a premier branded spirits company. To that effect, we continue to evaluate M&A opportunities while investing in whiskey put a way to support our distilling solutions and brand spirits segment sales.

作為我們整體資本配置策略的一部分，許多燃料廠應該透過將小麥澱粉流轉化為部分產品來消除這些成本，我們仍然專注於有機和收購性成長機會，這與我們成為一流品牌烈酒公司的長期策略相一致。為此，我們繼續評估併購機會，同時投資威士忌，以支持我們的蒸餾解決方案和品牌烈酒細分市場的銷售。

During the second quarter, our net whiskey put away was $16.3 million at cost. And we continue to expect net put away to be between $25 million to $30 million for 2024 or roughly half of the 2023. During the second quarter, we repurchased approximately $2.5 million of our common stock, bringing the year-to-date share repurchase amount to $7.5 million, we currently have more than $90 million remaining under the $100 million share repurchase program authorized by the Board of Directors in the first quarter, the Board of Directors also authorized a quarterly dividend of $0.12 per share, which is payable on August 30 to stockholders of record as of August 16. The Board continues to view dividends as an important way to share the success of the company stockholders.

第二季度，我們的威士忌淨庫存以成本計算為 1,630 萬美元。我們仍預期 2024 年的淨儲備將在 2,500 萬美元至 3,000 萬美元之間，約 2023 年的一半。第二季度，我們回購了約 250 萬美元的普通股，使年初至今的股票回購金額達到 750 萬美元，目前董事會授權的 1 億美元股票回購計劃中剩餘資金超過 9,000 萬美元第一季，董事會也授權每股0.12 美元的季度股息，將於8 月30 日支付給截至8 月16 日在冊的股東。董事會繼續將股利視為與公司股東分享成功的重要方式。

Turning to our outlook for the full year, given our first half performance, we are reiterating our full-year guidance with sales in the range of $742 million to $756 million, adjusted EBITDA in the range of $218 million to $222 million, adjusted basic earnings per share is forecasted to be in the range of $6.12 to $6.23 per share, assuming basic shares outstanding of approximately $22.3 million at year end.

談到我們的全年展望，考慮到我們上半年的業績，我們重申全年指導，銷售額在7.42 億美元至7.56 億美元之間，調整後EBITDA 在2.18 億美元至2.22 億美元之間，調整後基本收益假設年底已發行基本股約 2,230 萬美元，預計每股收益將介於 6.12 美元至 6.23 美元之間。

As David mentioned, we expect stronger profits and earnings growth in the second half of 2024, weighted more towards the fourth quarter. Underpinning our confidence in stronger second half and fourth quarter growth are a few key points.

正如 David 所提到的，我們預計 2024 年下半年的利潤和收益成長將更加強勁，對第四季的影響更大。有幾個關鍵點支撐了我們對下半年和第四季強勁成長的信心。

First, we expect our premium-plus brands momentum to continue. Distributor inventory levels for our brands are in good shape and positive impact from mix shift to premium brands should enable us to deliver branded gross margins at a higher end of our mid to upper 40% range.

首先，我們預計我們的高端品牌動能將持續下去。我們品牌的經銷商庫存水準狀況良好，混合轉型對高端品牌的正面影響將使我們能夠實現 40% 中高端的品牌毛利率。

Second, we continue to have good visibility for second half brown goods sales, the committed contracts for a vast majority of expected volumes. As mentioned earlier, our customers are adjusting their purchasing and shipments in response to changing market trends in effort to manage their working capital in the current higher interest rate environment.

其次，我們對下半年棕色商品的銷售持續保持良好的預見性，承諾的合約量佔絕大多數預期銷售量。如前所述，我們的客戶正在調整採購和發貨，以應對不斷變化的市場趨勢，並努力在當前利率較高的環境下管理其營運資金。

Given that similar to the first half, we expect the Sealing Solutions sales and profits to continue to be lumpy and disproportionately more weighted toward the fourth quarter.

鑑於與上半年類似的情況，我們預計密封解決方案的銷售額和利潤將繼續不穩定，並且在第四季度的比重將不成比例地增加。

Third, Ingredient Solutions segment gross margin improved by nearly 400 basis points sequentially from the first quarter, and we expect this trajectory to continue in the second half as our specialty protein business ramps up and additional specialty product opportunities take form in the second half.

第三，原料解決方案部門的毛利率比第一季連續提高了近400 個基點，我們預計隨著我們的特種蛋白質業務的增長以及下半年更多特種產品機會的形成，這種趨勢將在下半年繼續下去。

And now let me turn things back over to David for concluding remarks.

現在讓我把事情轉回給大衛做總結發言。

Thanks, Brandon. I would like to close by thanking and congratulating the talented and resilient MGP team for another quarter of strong operating performance as they continue to adapt and execute at a high level in a dynamic environment.

謝謝，布蘭登。最後，我要感謝並祝賀才華橫溢、富有韌性的 MGP 團隊，他們在動態環境中繼續適應和高水平執行，在另一個季度取得了強勁的營運業績。

Notwithstanding near term trends, we remain optimistic about the long-term health and growth potential of the alcoholic beverage industry. We are fully committed and even more importantly, we are making consistent progress on our long-term strategy of becoming a premier branded spirits company. And delivering attractive shareholder returns.

儘管有近期趨勢，我們仍然對酒精飲料產業的長期健康和成長潛力持樂觀態度。我們全力以赴，更重要的是，我們在成為一流品牌烈酒公司的長期策略上不斷取得進展。並提供有吸引力的股東回報。

That concludes our prepared remarks. Operator, we are ready to begin the question and answer portion of the call.

我們準備好的演講到此結束。接線員，我們已準備好開始通話的問答部分。

We will now begin the question-and-answer session. (Operator Instructions)

我們現在開始問答環節。（操作員說明）

Robert Moskow from TD Cowen.

TD Cowen 的 Robert Moskow。

This is Seamus Cassidy on for Rob Moskow. Thanks for the question. And I was hoping sort of just given the strong volume growth in brown goods, if you could help contextualize the minus 18% price mix results. Maybe just directionally, you know, how much of this reflects incremental new digital, it mix shift versus sort of like-for-like change in Asia versus new pricing. And then on that, the gross margins for the segment came in ahead of our expectations. I'm just curious how this trended relative to your expectations given sort of this intentional mix shifts to do so? Thank you.

我是謝默斯卡西迪 (Seamus Cassidy) 替補羅布莫斯科 (Rob Moskow)。謝謝你的提問。鑑於棕色商品的銷量強勁增長，我希望您能幫助我們了解負 18% 的價格組合結果。也許只是方向性的，你知道，這在多大程度上反映了漸進的新數位化，它混合了亞洲的類似變化與新定價。然後，該部門的毛利率超出了我們的預期。我只是好奇，考慮到這種有意的混合變化，這種趨勢相對於你的期望有何變化？謝謝。

Yeah, this is Brandon. Thanks for the question, Seamus. Yes, that's exactly right. Branded sales were up 3% in the quarter, led by volume on it to your point, the volume increase was driven by new distillate. As we've shared over the last couple of quarters, we have increased in heightened our focus on new distillate sales and maybe, that we expect them to be the majority proportionately of our branded sales this year, and that is in fact, playing out.

是的，這是布蘭登。謝謝你的提問，西莫。是的，完全正確。本季品牌銷售額成長了 3%，銷量帶動了銷量的成長，銷量的成長是由新餾分油推動的。正如我們在過去幾季中分享的那樣，我們更加關注新的餾分油銷售，也許我們預計它們將佔今年我們品牌銷售的大部分比例，而事實上，這正在發揮作用。

So although the volumes but much greater there the price mix has declined as a result. So that's what you're going to see me up the young mix shift there.

因此，儘管那裡的銷量大得多，但價格組合卻有所下降。這就是你將在年輕混合班上看到的我的情況。

I will also add, but it is mix driven in that pricing would be, but still it was up year over year. It is pricing to was in line with expectations, but it was slightly down for the reason being that the average age of the barrels we sold during the quarter was younger than the same period last year. And so the pricing moved as we would have expected with that.

我還要補充一點，但它是混合驅動的，定價將是，但仍然逐年上漲。定價符合預期，但略有下降，原因是我們本季銷售的桶的平均年齡比去年同期更年輕。因此，定價的變化正如我們所預期的那樣。

So on the underlying very strong played out the way we anticipated and the way we planned.

因此，從根本上講，我們按照我們預期和計劃的方式發揮了作用。

That's helpful. Thanks, I will get back the queue.

這很有幫助。謝謝，我會回到隊列。

Bill Chappell, Truist Securities.

比爾‧查普爾 (Bill Chappell)，Truist 證券公司。

Thank you. Just sticking on the distilling Solutions segment, what are you seeing or hearing from your customers about kind of 2025, I guess there's concern that we're seeing a pause in spirits consumption and obviously, some of the bigger global players have been more cautious. And so I didn't know of that, if you're hearing that in terms of indications for '25, if you're concerned about that or if that even played into any of your kind of back half guidance.

謝謝。就蒸餾解決方案領域而言，您從客戶那裡看到或聽到的關於 2025 年的情況，我想人們擔心我們會看到烈酒消費的暫停，顯然，一些較大的全球參與者更加謹慎。所以我不知道這一點，如果你聽到25年的跡象，如果你擔心這一點，或者這是否會影響到你的後半場指導。

Hey, it's a great question. So as we've talked about multiple times, you do have the advantage of the new disclosure. This is a contract basis. You know, we're hearing the same things that you would hear as you'd hear on other investor calls. But I think as we said multiple times, as we look at these larger multinational customers and stuff that are buying on a disciplined basis.

嘿，這是一個很好的問題。正如我們多次討論的那樣，您確實擁有新披露的優勢。這是合約基礎。您知道，我們聽到的內容與您在其他投資者電話會議上聽到的內容相同。但我認為，正如我們多次說過的那樣，當我們關注這些較大的跨國客戶和在嚴格的基礎上購買的東西時。

They continue to be optimistic about the future. The great thing about that business, as we've always said, is contracted. Now having that as we move into 2025. We've also said that we have an ongoing contract renewal process in place. And as we play through that, we're constantly in contact with and working through that but today, I think we're very optimistic and we're very happy with our strategy on new discipline because of that.

他們繼續對未來持樂觀態度。正如我們常說的，這項業務的偉大之處在於承包。現在，當我們進入 2025 年時，這一點就實現了。我們也說過，我們有一個持續的合約續約流程​​。當我們完成這個任務時，我們不斷地接觸並解決這個問題，但今天，我認為我們非常樂觀，因此我們對新學科的策略非常滿意。

Got it. Thank you. And then maybe the second question on the branded side, are you still moving forward? I mean you had original plans too to rationalize some of the sub-premium brands and exit that. Is that still in place? Or is it trying to understand the strength of the business if it's coming primarily for Penelope, if it's from some I can maybe talk about Yellowstone or some of the other premium brands and then also is it being offset still being offset as planned for the rationalization?

知道了。謝謝。然後也許是品牌方面的第二個問題，你還在繼續前進嗎？我的意思是，你們也有最初的計劃來合理化一些次高端品牌並退出。那還在嗎？或者它是否試圖了解業務的實力，如果它主要來自佩內洛普，如果它來自某些我可以談論黃石或其他一些優質品牌，那麼它是否正在被抵消，仍然按照合理化計劃被抵消？

While our premium-plus category continues to grow as you saw in our gross margin percentage, that's that is the contribution of it and Penelope and now they are in Yellowstone are all contributing to that. That is our core focus as we look at as we move forward and becoming a branded spirits company.

雖然我們的高級類別繼續增長，正如您在我們的毛利率百分比中看到的那樣，但這就是它的貢獻，佩內洛普以及現在在黃石的他們都對此做出了貢獻。這是我們前進並成為一家品牌烈酒公司時所關注的核心焦點。

But what we do at the same time, as we as I've said, we always are going to offer a portfolio of products across very, very different categories and different price points.

但我們同時所做的，正如我所說，我們始終會提供跨越非常非常不同的類別和不同價位的產品組合。

When we talk about rationalizing, we tend to talk about rationalizing the value price point, not so much the mid, although there are a lot of MIDs that we continue to rework and tried to reprice into that premium at least premium category.

當我們談論合理化時，我們傾向於談論價值價格點的合理化，而不是中端價格點的合理化，儘管我們繼續對許多 MID 進行返工，並試圖將其重新定價為高端，至少是高端類別。

So it is a strategy we, I guess to answer your question. We have rationalized some and we continue to focus on the value side, but that has slowed quite a bit, and we're starting to see the results of that efforts.

所以我想這是我們回答你問題的策略。我們已經合理化了一些，我們繼續關注價值方面，但這已經放緩了很多，我們開始看到這些努力的結果。

Yeah, just add to that, a little bit, Bill. So yeah, in the quarter, our mid and value were flattish, which is an improvement relative to what we typically see for those two price points. And the reason for that is it is a very weak comp last year.

是的，只是補充一點，比爾。所以，是的，在本季度，我們的中位數和價值持平，相對於我們通常看到的這兩個價格點來說，這是一個進步。原因是去年的表現非常疲軟。

And so as you recall, in Q1 of 2023, we had our national distributor realignment in March. There was a pipeline fill permit and valuable. And so the result was Q2 of last year for May was down 27% and value was down 10%.

您還記得，在 2023 年第一季度，我們在 3 月對全國經銷商進行了調整。有管道填充許可證並且很有價值。結果是去年第二季 5 月下降了 27%，價值下降了 10%。

So that's what we are cycling through. We do not expect or anticipate mid and value. I'm sure this type of growth are holding serve from a from that perspective for the rest of the year yet.

這就是我們正在經歷的事情。我們不期望或預期中位數和價值。我確信從這個角度來看，這種類型的成長在今年剩餘時間仍將保持不變。

And I will just add one more piece that as we look forward in our evolution as a company, we what we will focus on developing and innovation, M&A, all the things that are necessary at that premium plus price point category.

我只想補充一點，當我們展望公司的發展時，我們將專注於開發和創新、併購，以及溢價加價位類別所需的所有事情。

But it is certainly we're going to shed every unit that we have and stuff because I think part of what makes us unique and part of what's real in our industries that you have to service customers across multiple price points.

但我們肯定會放棄我們擁有的每一個單位和東西，因為我認為，我們的獨特性和我們行業的真實性的一部分，就是你必須為多個價位的客戶提供服務。

Got it. And just a follow-up, it doesn't sound like you're seeing or saw much inventory destock from distributors this quarter, certainly compared to last year, but even from Q1.

知道了。後續行動，聽起來您並沒有看到或看到本季度分銷商的庫存減少，當然與去年相比，但即使從第一季開始也是如此。

Yeah. No, I mean, we as we said last time our inventory levels and we do monitor that are at our distributors are holding consistent. I think did I find it also interesting is now you're starting to see other people talk about the consistency of the inventory.

是的。不，我的意思是，正如我們上次所說，我們的庫存水準和我們確實監控的經銷商的庫存水準保持一致。我想我是否發現這也很有趣，現在你開始看到其他人談論庫存的一致性。

Now we're talking about more on the retail level. I think you know, I can't I can tell for our company that our inventory is exactly where we need. It has been exactly where we need it. We continue to monitor on a daily basis.

現在我們更討論零售層面。我想你知道，我不能，我可以告訴我們公司，我們的庫存正是我們需要的。它正是我們需要的地方。我們將繼續每天進行監測。

Great. Thanks so much.

偉大的。非常感謝。

Marc Torrente, Wells Fargo.

馬克‧托倫特，富國銀行。

Good morning and thank you for your questions. Just a couple here on back to the branded side, total sales were up strong double digit premium plus nearly 30%.

早安，謝謝您的提問。就品牌方面而言，總銷售額增長了兩位數的強勁溢價，並且增長了近 30%。

You anniversary the Penelope acquisition during the quarter, which provided some support sales, maybe like mid-single digits contribution to the segment over the last few quarters. What's your level of confidence that you can continue to grow this segment given the category and macro backdrop, maybe some of the near term opportunities you're seeing in terms of brands distribution?

本季度是佩內洛普收購的周年紀念日，這提供了一些支持銷售，可能就像過去幾季對該細分市場的中個位數貢獻一樣。考慮到品類和宏觀背景，您對繼續發展這一細分市場的信心有多大，也許您在品牌分銷方面看到了一些近期機會？

Yeah. Thanks for the question, Mark. This is Brendan, I'll start and I'll let David fill the gaps, but it's just continued execution in the quarter. You're exactly right. So just for everybody else on June first was the anniversary of the LP acquisition and that close.

是的。謝謝你的提問，馬克。這是布倫丹，我將首發，我將讓大衛填補空缺，但這只是本季的繼續執行。你說得完全正確。因此，對於其他所有人來說，六月一日是 LP 收購和收購結束的周年紀念日。

So we did get a couple of months of benefit on the quarter. But the rest of the premium plus portfolio did show robust growth on even if you take out Penelope. So we're very, very proud of that and that's being led about the brands that David mentioned and including our tequila portfolio and premium plus also did very well.

因此，我們確實在本季獲得了幾個月的收益。但即使剔除佩內洛普，其他優質投資組合也確實顯示出強勁成長。因此，我們對此感到非常非常自豪，大衛提到的品牌包括我們的龍舌蘭酒產品組合和優質加號也做得很好。

But we also had a nice uptick in our allocated items of premium plus offerings, and we expect that to sequentially improve as the year goes on as well. So the way we see the rest of the year playing out and what gives us optimism is what we talked about, its continued focus on gaining penetration in the points of distribution in growing that way organically within the assays, I think we've beaten that think.

但我們分配的高級附加產品項目也有不錯的成長，我們預計隨著時間的推移，這種情況也會逐步改善。因此，我們看到今年剩餘時間的情況以及讓我們感到樂觀的就是我們所討論的，它繼續專注於在分析中以這種方式有機增長，從而在分佈點獲得滲透，我認為我們已經擊敗了這一點思考。

So let me add a little bit. I think what's unique about us, and we talked about this for the last couple of quarters as compared to our peer set and especially in the branded spheres. That side is the white space opportunity, even if someone wanted to view consumption lower or whatever.

讓我補充一點。我認為我們的獨特之處在於，與我們的同行相比，特別是在品牌領域，我們在過去的幾個季度中討論了這一點。即使有人想降低消費量或其他什麼，這一面也是空白的機會。

If you look at where we're at and the opportunity that we have with the brands we have, it's wide open and this is why you continue to see growth in that Penelope is another just a perfect example just this quarter alone, we expanded into seven more states.

如果你看看我們所處的位置以及我們擁有的品牌所擁有的機會，它是開放的，這就是為什麼你繼續看到成長，佩內洛普是另一個完美的例子，僅在本季度，我們就擴展到了還有七個州。

So as we move forward and we look at innovation, we look at those focused brands, we look at M&A opportunities that is where we can be different than our other peers.

因此，當我們前進時，我們著眼於創新，我們著眼於那些專注的品牌，我們著眼於併購機會，這就是我們與其他同行不同的地方。

Yeah. Thank you for that. And then just building on the branded opportunity, you saw record gross margins during the quarter. How much of that was shipment timing versus just underlying mixed momentum?

是的。謝謝你。然後，僅依靠品牌機會，您就在本季度看到了創紀錄的毛利率。其中有多少是發貨時間與潛在的混合動力有關？

And how do you see that playing out through the rest of the year?

您如何看待今年剩餘時間的情況？

Yeah, it was not a surprise to us when in 2021, when the merger between MGP and Luxco took place, gross margins were in the mid-30s. And if you look at our quarterly results ever since then it's been a steady step up off to the record 52.5% that we just posted this quarter.

是的，2021 年 MGP 和 Luxco 合併時，毛利率在 30 左右，這對我們來說並不奇怪。如果你看看我們從那時起的季度業績，你會發現它一直穩步上升到我們本季剛發布的創紀錄的 52.5%。

And it's just continued execution. Its focus, its investment in A&P on this premium plus brands, which come, as you'd imagine, with much higher margins and in suspense as continued execution of Luxco?

這只是繼續執行。它的重點，它對 A&P 的投資，集中在這個高端品牌上，正如你想像的那樣，這些品牌的利潤率要高得多，而且隨著 Luxco 的繼續執行而懸而未決？

Maybe, I think the best way to say it is if you look at what I just said earlier, our inventory remained level. If we were outlay in shipments, you'd see a climb in it versus depletions. We monitor our shipment depletions very closely.

也許，我認為最好的說法是，如果你看看我剛才所說的，我們的庫存保持在水平。如果我們在運輸方面支出，你會看到運輸支出的增加而不是消耗。我們非常密切地監控我們的出貨消耗情況。

They have indicated in the past, even if we look at internal compensation system for our own sales team and stuff, they're all of depletion based, not shipment based. And again, I think that what's what makes us unique and it doesn't encourage our channel stuffing or loading and allows us to better manage our inventory.

他們過去曾表示，即使我們看看我們自己的銷售團隊和員工的內部薪酬體系，它們都是基於消耗的，而不是基於發貨的。再說一遍，我認為這就是我們的獨特之處，它不會鼓勵我們的管道填充或加載，並允許我們更好地管理我們的庫存。

Okay. And then if I could squeeze in one more. You've talked about the opportunity over time to improve free cash flow conversion as you shift more to a new distillate model and branded strategy on your finishing up a few larger capital projects this year that require elevated CapEx. Maybe help contextualize the longer-term opportunity here and maybe sort of progress we may see in the next year?

好的。然後如果我能再擠進去一個。您談到了隨著時間的推移，當您在今年完成一些需要提高資本支出的大型資本項目時，更多地轉向新的餾分油模型和品牌策略，從而有機會提高自由現金流轉換。也許有助於了解這裡的長期機會，也許我們明年可能會看到一些進展？

Yeah. Great question. So there's really two catalysts are that are going to change the free cash flow profile of our business. And of the first one, as you mentioned, is CapEx. We are at a high watermark for CapEx this year on, as recall, where we expect to spend or invest approximately $85 million in CapEx projects.

是的。很好的問題。因此，實際上有兩個催化劑將改變我們業務的自由現金流狀況。正如您所提到的，第一個是資本支出。回顧一下，今年我們的資本支出處於高水位，我們預計將在資本支出項目上花費或投資約 8,500 萬美元。

The majority of those are warehouse related on value. We've had great success through continuous improvement efforts and some capital of really on increasing our throughput at our distilleries. So the warehouses now have to play catch-up on to support that growth.

其中大部分與價值相關的倉庫。透過不斷的改進努力和一些真正提高釀酒廠產量的資本，我們取得了巨大的成功。因此，倉庫現在必須迎頭趕上，以支持這種增長。

And so that's going to continue on the on a little bit into 2025 as well, although not as high of a level. We will give a, you know, a full read on CapEx later on, but we expect it to tick down maybe closer to $60 million next year. And then even lower thereafter.

因此，這種情況也將持續到 2025 年，儘管水平沒有那麼高。您知道，稍後我們將全面解讀資本支出，但我們預計明年資本支出可能會下降至接近 6,000 萬美元。此後甚至更低。

So that's where we expect to see the free cash flow pickup from capital, but also on the inventory put away, that's another large items. So last year it was 2023. On a net basis, our inventory increased more than $50 million in this year. We expect that number to be roughly half of that, and that's it because of what you just said, where we're allocating a lot of our production throughput to new distillate customers and we are still putting away we are still investing there, but we feel very good about our level of our inventory. And we feel like we're at we continue investing but don't need to at such an accelerated clip.

因此，我們預計資本的自由現金流量將會增加，而且庫存也會增加，這是另一個大項目。去年是 2023 年。以淨額計算，今年我們的庫存增加了超過 5000 萬美元。我們預計這個數字大約是這個數字的一半，這就是因為你剛才所說的，我們將大量生產吞吐量分配給新的餾分油客戶，我們仍然在投資，但我們仍然在投資。的庫存水準感覺非常好。我們覺得我們正在繼續投資，但不需要如此加速。

So just do those two capital allocation shifts or adjustments, there's going to be much more on free cash flow to fall off to investors to invest in other areas of the business.

因此，只要進行這兩項資本配置轉移或調整，投資者就會有更多的自由現金流來投資業務的其他領域。

Ben Klieve, Lake Street.

本·克里夫，湖街。

Thank you very much taking the questions and congratulations on a nice quarter, guys. On first, you got a question then following your comment on Penelope and the distribution. You said that it cannot be moved into seven new states here in Q2.

非常感謝你們提出問題，並祝賀你們度過了一個愉快的季度。首先，你有一個問題，然後是你對佩內洛普和發行版的評論。你說它不能在第二季轉移到七個新的州。

I'm wondering if you can remind us of what the distribution was at this point last year and what the overall distribution levels are right now, kind of trying to understand the level of year-over-year growth we could still see from Penelope now that it's lapse in the second half of the year?

我想知道你是否能提醒我們去年這個時候的分佈情況以及現在的總體分佈水平是多少，試圖了解我們現在仍然可以從佩內洛普身上看到的同比增長水平下半年就失效了嗎？

Yeah, Ben, this is Brendan. Thanks for the question, Ben. Yes, so when we closed the Penelope acquisition in June, there were you know right around 30 states, maybe a couple more than that. And we finished 2023 at 37 states in total. And so by the end of this year or sorry, we added two more states in Q1, and in Q2. Probably by this time next year, we expect to be in about all 50 are not all states are in all markets are equal, you and remind you that on the out, some states are much larger and have more of an impact than others on that.

是的，本，這是布倫丹。謝謝你的提問，本。是的，所以當我們在 6 月完成對佩內洛普的收購時，你知道大約有 30 個州，也許不只幾個。2023 年結束時，我們總共涵蓋了 37 個州。因此，到今年年底，或者抱歉，我們在第一季和第二季又增加了兩個州。可能到明年這個時候，我們預計大約所有 50 個州都不會在所有市場上都是平等的，請提醒您，在外面，一些州比其他州大得多，並且比其他州有更大的影響力。

But yeah, we are we're trying to be very thoughtful and deliberate about how we roll this out. We've only moved too fast. We want to make sure that the market support is there.

但是，是的，我們正在努力深思熟慮地考慮如何推出這項項目。我們只是動作太快了。我們希望確保市場支持。

When you do, I'm not going to say -- I think the bed to the moving into the state is just step one that opens up a whole new area of white space as we expand, expand pod. So you might go into a state and align with someone and, you know, come out of the gate with pick a number of pods. But once you're in there, you're able to benchmark other competitors.

當你這樣做時，我不會說——我認為進入該州的床只是第一步，隨著我們擴展、擴展吊艙，它開闢了一個全新的空白區域。所以你可能會進入一種狀態並與某人結盟，然後你知道，走出大門時會挑選一些豆莢。但一旦進入其中，您就可以對其他競爭對手進行基準測試。

The real opportunity as we move forward is the expansion in that state. So it's just one, but I look at it as the opportunity within those in those states to continue that expansion and momentum forward. And that's not only true of an LP.

我們前進的真正機會是在該州的擴張。所以這只是其中之一，但我將其視為這些州繼續擴張和前進勢頭的機會。這不僅適用於 LP。

It's true on any of our products that we do as we enter something we tried to find the right pods to expand at a competitive level.

對於我們的任何產品來說，這都是事實，當我們進入一些產品時，我們試圖找到合適的產品以在競爭水平上擴展。

Got it. I appreciate that. That's helpful. On one of the big picture question I'll get back in queue. You talked about selectively pursuing M&A in this environment where the spirits segment is facing its share of dynamics.

知道了。我很欣賞這一點。這很有幫助。對於一個大問題，我將重新排隊。您談到了在烈酒產業面臨動態的環境下有選擇性地進行併購。

How is your view of M&A evolved here of late, are you seeing more brands become available in your targeted categories? And are those targets moving or valuations coming down? Any insights on the M&A environment would be great.

您最近對併購的看法如何演變？這些目標是否會改變或估值是否會下降？任何有關併購環境的見解都會很棒。

I would call that the deal flow choppy digital because we got to think about the whole environment, the dynamic environment and where people are sitting back and trying to really understand what's going on.

我將這種交易流程稱為數位化交易流程，因為我們必須考慮整個環境、動態環境以及人們坐下來試圖真正了解正在發生的事情。

Now, having said that, we are seeing opportunities, but we reinforce this for a few quarters in a row that we want to make sure it's the right opportunity that is margin accretive. That gets us closer to our peers on our gross margin percentage.

現在，話雖如此，我們看到了機會，但我們連續幾個季度強化了這一點，我們希望確保這是增加利潤的正確機會。這使我們在毛利率方面更接近同行。

And also we are seeing deal flow being able, but that's different than actually being able to pick one that we want to do the right thing on. I expect that we'll continue to see increased deal flow over the rest of this year and into 25 very good.

我們也看到交易流程能夠進行，但這與實際能夠選擇我們想要做正確事情的交易不同。我預計今年剩餘時間我們將繼續看到交易量增加，達到 25 筆，非常好。

I appreciate you for taking my questions. I'll get back in queue. Thanks.

感謝您回答我的問題。我會回到隊列中。謝謝。

Mitch Pinheiro, Sturdivant & Company.

米奇·皮涅羅 (Mitch Pinheiro)，Sturdivant & Company。

Hey, good morning. I was just curious whether from a revenue point of view there was that Distilling Solutions segment, whether there was any differentiation between your multi nationals in craft segments?

嘿，早安。我只是好奇從收入的角度來看是否有蒸餾解決方案部門，你們的跨國公司在工藝部門之間是否有任何差異？

Yeah, great question. So if you go back to how we talk talked about that business on new distillate customers tend to be more multinational. And whereas our age customers tend to be more craft & Regional. And so as we are focused more on the new distillate on those are going to be the types of customers we're going to be dealing with more so on a relative basis, the R&D side, that's where you know, we have experienced some choppiness of.

是的，很好的問題。因此，如果你回到我們談論的方式，新餾分油客戶的業務往往更加跨國化。而我們的年齡客戶往往更注重工藝和區域性。因此，當我們更專注於新的餾分油時，我們將更專注於這些類型的客戶，相對而言，研發方面，這就是你知道的，我們經歷了一些波動的。

However, we entered the year having looked through a cycle like this before expecting that, which is why we positioned the business the way we did, our more toward new distillate yield, the age customer, the more craft regional customer, and we've talked about this as well has shifted from buying just in case to more so buying just in time.

然而，我們在進入這一年之前就已經經歷了這樣的周期，這就是為什麼我們以我們的方式定位業務，我們更專注於新的餾分油產量、年齡客戶、更多工藝區域客戶，我們已經談到這一點，也從以防萬一購買轉向更多及時購買。

And so we expect that to continue on throughout the rest of this year, at least. But we feel like we've done a good job in managing the business to still be predictable on the way we have.

因此，我們預計這種情況至少會持續到今年剩餘時間。但我們覺得我們在業務管理方面做得很好，仍然可以按照我們現有的方式進行預測。

I'd add to that, if you think about the Distilling Solutions segment, a segment of our business. That's what makes it unique speaking as a long term brands, is the offerings that we offer. There are people who can sell other whiskeys, but to the level that MGP does it and uniqueness of the mash bills that our ability to convert very quickly responsive to those customers that are super competitive price of them. I think it sets us apart even in a maybe a choppy period of time.

如果你考慮一下我們業務的蒸餾解決方案部門，我想補充一點。這就是它作為一個長期品牌的獨特之處，那就是我們提供的產品。有些人可以銷售其他威士忌，但達到 MGP 的水平和麥芽漿帳單的獨特性，我們能夠快速回應那些價格極具競爭力的客戶。我認為即使在一段動盪的時期，這也使我們與眾不同。

You know, they're going to continue to come back. And as you've heard from others, we still have confidence in American whiskey category. Has it been choppy? Has it slowed some? Yes, but it's still there. It's still lies in the opportunity. We've said over and over not only in the US, it's in Europe.

你知道，他們會繼續回來。正如您從其他人那裡聽到的那樣，我們仍然對美國威士忌類別充滿信心。是否已經波濤洶湧？有沒有放慢一些？是的，但它仍然存在。還是在於機會。我們一遍又一遍地說，不只在美國，在歐洲也是如此。

It's in a lot of other categories that we do that we can do and offers us expansion opportunity because we do have that business segment, whereas a lot of appears that we have not necessarily complete in that area.

我們在許多其他類別中都可以做，並為我們提供了擴展機會，因為我們確實擁有該業務部門，而許多似乎我們在該領域不一定完成。

They're very helpful. As how does that when you're looking at the barrel distillate that you're putting away is, is that, you know, I guess more and more of that distillate is going to be for your own brands.

他們非常有幫助。當你看到你正在存放的桶餾分時，你知道，我猜越來越多的餾分將用於你自己的品牌。

Are you putting away more now for third party customers? Or is this going is this most of the news is still at the age side or the new the new barrel distillate is that is that is that for your own brands now? I mean, is that where is that?

現在您會為第三方客戶存更多錢？或者這是大多數新聞仍然在年齡方面還是新的新桶餾分油是現在為您自己的品牌？我的意思是，那是哪裡？

Yeah. So but so last year, we put away on quite a bit of whiskey, much of that was off, but majority of that was definitely for Distilling Solutions customers this year. And that number has come down a bit. It's gone a little bit more in parity in terms of whether it's for our own brands or for Distilling Solutions customers. But we're still investing for both is the main takeaway here on.

是的。所以去年，我們儲備了相當多的威士忌，其中大部分都已經關閉，但其中大部分肯定是今年為蒸餾解決方案客戶提供的。這個數字已經下降了一些。無論是對於我們自己的品牌還是對於蒸餾解決方案客戶來說，它都更加平等了。但我們仍然對這兩個方面進行投資，這是這裡的主要收穫。

So we have a lot of confidence in both our we like I said, we've seen these many cycles before, and we expect things as they settle out with the consumer and with interest rates to return to a more normalized level of growth.

因此，我們對我們的市場充滿信心，就像我說的那樣，我們之前已經見過很多周期，我們預計隨著消費者和利率的解決，事情會恢復到更正常化的成長水平。

I would add to that, too, if you think about it and we've said this in prior quarters, what makes us unique is our ability to take new entrants into the category and bridge and from today to four years from today.

我還要補充一點，如果你考慮一下，我們在前幾季已經說過，我們的獨特之處在於我們有能力將新進入者帶入該類別，並從今天到四年後建立橋樑。

So with that, you know, we are always going to be putting up layaway are put away for our future customers. I mean that is what we offer this unique. There may be other entrants into the category and the distillation business. But when you have zero on it. It's very hard. A customer can come to us today, paint a vision for us. We help them develop their products, provide unique products to them and say now I think we do that.

因此，您知道，我們總是會為未來的客戶提供預購服務。我的意思是，這就是我們所提供的獨特之處。可能還有其他進入者進入該類別和蒸餾業務。但當你的分數為零時。這很難。客戶今天可以來找我們，為我們描繪願景。我們幫助他們開發產品，為他們提供獨特的產品，並說現在我認為我們會這樣做。

I can give you and get you in the market today and continue to push your brand and help you grow your brand to become a new larger new digital customer.

我可以為您提供並讓您進入今天的市場，並繼續推動您的品牌並幫助您發展您的品牌，成為新的更大的新數位客戶。

And just one follow-up is just one would love to hear your thoughts or any update on potential international sales?

只是一個後續行動只是想聽聽您的想法或任何有關潛在國際銷售的最新情況？

It continues to be a focus area. I mean I've said for a long time, even for a very long time that that is the opportunity market, American whiskey in Europe is lagged. And typically on some of these categories that continue to lag. I'll even call out tequila, you're starting to see a little sticky, low rise in the European markets.

它仍然是一個重點領域。我的意思是我已經說過很長一段時間了，甚至很長一段時間以來，這就是機會市場，美國威士忌在歐洲是滯後的。通常在其中一些類別上繼續落後。我甚至會提到龍舌蘭酒，你開始看到歐洲市場有一點黏性的、低迷的上漲。

And so I do believe that the long-term opportunity is in Europe. We do have our feet on the ground because of the fact that, that achieves because they are today in Europe that left the US yesterday to go and explore opportunities to build those relationships, look at how the channels are different, what price points that they're entering on to totally understand the market. I feel like that is a real opportunity a real white space for the steel solutions.

因此，我確實相信長期機會在歐洲。我們確實腳踏實地，因為這樣的事實，這是因為他們今天在歐洲，昨天離開美國去探索建立這些關係的機會，看看渠道有何不同，他們的價格點是多少我們正在全面了解市場。我覺得這是一個真正的機會，是鋼鐵解決方案的真正空白。

Thank you for the questions and comments.

感謝您的提問與評論。

(Operator Instructions)

（操作員說明）

Sean McGowan, Roth Capital Partners.

肖恩·麥高恩，羅斯資本合夥人。

Thank you. Appreciate. Two quick things. Can you give us a sense of whether the advertising levels you're expecting in the second half should be in terms of percentages of revenue about the same as what you've seen so far in the first half or will it moderate at all I know you said you committed to continuing to advertise is just trying to get a sense of what the level is going to be.

謝謝。欣賞。兩件快事。您能否告訴我們，您預計下半年的廣告水平是否應與上半年到目前為止所看到的收入百分比大致相同，還是會有所放緩？什麼水平。

Yeah. Thanks for the question. And the opportunity to drive out more insight there. So our A&P spend was north of $10 million in the quarter, actually north of $11 million excuse me, and we do expect Q2 to be the high watermark for the year from a quarterly basis for advertising and promotional spend.

是的。謝謝你的提問。以及在那裡獲得更多見解的機會。因此，本季度我們的 A&P 支出超過 1000 萬美元，實際上超過 1100 萬美元，我們確實預計第二季度將成為按季度廣告和促銷支出計算的今年高水位線。

And a lot of that has to do with how we're shipping a lot of our advertising around March Madness this year, whereas last year it was more Q4 weighted. We do expect Q2 to be a higher quarter of spend for particularly for our brand spirits promotion.

這在很大程度上與我們今年在瘋狂三月期間投放大量廣告的方式有關，而去年則更注重第四季度的廣告投放。我們確實預計第二季的支出將會更高，尤其是我們的品牌烈酒促銷方面。

Additionally, while we're talking about in terms of how we see the quarters playing out, and then I talked to this a little bit my prepared remarks, Sean, but we do anticipate on our brown goods sales to be disproportionately weighted towards Q4 relative to Q3.

此外，雖然我們正在談論我們如何看待季度的發展，然後我談了一點我準備好的言論，肖恩，但我們確實預計我們的棕色商品銷售將不成比例地偏重於第四季度相對到 Q3。

And we saw this a similar thing play out between Q1 and Q2. A lot of those contracts are written toward those customers have on they have to purchases are in for a certain amount in the first half and a certain amount in the second half because of the higher interest rate environment. They are opting to wait down in transact later on in that period, which is why Q2 and Q4 will be more heavily weighted.

我們看到第一季和第二季之間發生了類似的事情。由於較高的利率環境，許多合約都是針對那些必須在上半年購買一定金額並在下半年購買一定金額的客戶而簽訂的。他們選擇在此期間稍後等待交易，這就是為什麼第二季和第四季的權重會更大。

I'd add to that, that is true with brands as well as you think about Q4 tends to be it's obviously holidays. And so you're looking like you're going to have a bigger demand for the product and you'll see a little stronger piece, if I were if you think about where we're at on our guidance and our and what we've done in Q1 and Q2, I would expect Q2 three and four to follow a very similar trend in profitability in Q1, Q2 and comparing that to Q3 and Q4.

我想補充一點，這對品牌來說是正確的，而且你認為第四季顯然是假期。所以你看起來會對產品有更大的需求，你會看到一個更強大的產品，如果我是的話，如果你想想我們在我們的指導和我們的以及我們的內容上的位置根據第一季度和第二季度的情況，我預計第二季第三季和第四季的獲利能力將遵循與第一季、第二季非常相似的趨勢，並將其與第三季和第四季進行比較。

Thank you. That's helpful. And then one on equity. Can you give us a little bit more color on just how much of the growth in branded spirits came from Penelope as you lapped it like we did on a year-over-year basis?

謝謝。這很有幫助。然後是關於股權的問題。您能否向我們提供更多信息，告訴我們品牌烈酒的增長有多少來自佩內洛普（Penelope），就像我們在同比基礎上所做的那樣？

Yeah, a good portion of that was on the majority of the growth in premium plus was off from Penelope, but I don't want to take anything away from the rest of the portfolio because as I mentioned earlier, we did see robust growth also in those other brands, particularly tequila, David mentioned, may or we're seeing good results with Rebel and a lot of the other marketing spend behind that brand. So it was pretty evenly weighted on growth outside of Penelope.

是的，其中很大一部分是來自佩內洛普的溢價增長，但我不想從投資組合的其餘部分中拿走任何東西，因為正如我之前提到的，我們確實也看到了強勁的增長David 提到，在其他品牌中，尤其是龍舌蘭酒，我們可能會看到Rebel 以及品牌背後的許多其他行銷支出取得了良好的成果。因此，它對佩內洛普以外的成長的權重相當均勻。

And then the other thing to too is that our allocated offerings picked up in the quarter, and we expect that to continue picking up sequentially as the year goes on.

另一件事情是，我們分配的產品在本季度有所增加，我們預計隨著時間的推移，這種情況將繼續增加。

Thank you very much. Appreciate that.

非常感謝。很欣賞這一點。

Ladies and gentlemen, this now concludes our question and answer session. I would like to turn the conference back over to David Bratcher for any closing remarks.

女士們、先生們，我們的問答環節到此結束。我想將會議轉回給大衛·布拉徹（David Bratcher）發表閉幕詞。

Thanks, everyone, for the confidence you have placed in our team as we continue to transition into a premier branded spirits company.

感謝大家在我們持續轉型為一流品牌烈酒公司的過程中對我們團隊的信任。

I would also like to thank Mike Houston and the Lambert team for their support and help in driving our investor engagements over the last several years. We are pleased with our first half performance and look forward to meeting many of you at investor conferences over the next several months.

我還要感謝麥克休斯頓和蘭伯特團隊在過去幾年中推動我們投資者參與的支持和幫助。我們對上半年的業績感到滿意，並期待在未來幾個月的投資者會議上與你們見面。

Thank you, sir. The conference has now concluded. Thank you for joining today's presentation. You may now disconnect your lines.

謝謝您，先生。會議現已結束。感謝您參加今天的演講。現在您可以斷開線路。