MGP Ingredients Inc (MGPI) 2025 Q1 法說會逐字稿

Good morning, and welcome to the MGP Ingredients first-quarter earnings call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Amit Sharma, Vice President of Investor Relations. Please go ahead.

早安，歡迎參加 MGP Ingredients 第一季財報電話會議。（操作員指示）請注意，此事件正在被記錄。現在，我想將會議交給投資者關係副總裁 Amit Sharma。請繼續。

Thank you. Good morning, and welcome to MGP's first-quarter earnings conference call. I'm Amit Sharma, Vice President of Investor Relations, and joining me is Brandon Gall, Interim President and Chief Executive Officer and Chief Financial Officer; and Mark Davidson, Vice President, Corporate Controller and Head of Treasury.

謝謝。早上好，歡迎參加 MGP 第一季財報電話會議。我是投資者關係副總裁 Amit Sharma，與我一起的是臨時總裁兼執行長兼財務長 Brandon Gall；以及副總裁、公司財務主管兼財務主管馬克戴維森 (Mark Davidson)。

We will begin the call with management's prepared remarks before opening the call to analyst questions. Before we begin, this call may involve certain forward-looking statements. 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 annual and quarterly reports filed with the SEC.

在開始回答分析師的問題之前，我們將先聽管理層準備好的發言。在我們開始之前，本次電話會議可能涉及某些前瞻性陳述。由於多種因素，包括公司向美國證券交易委員會提交的年度和季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有重大差異。

The company assumes no obligation to upgrade 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. A reconciliation of these measures to the most comparable GAAP measures is included in today's earnings release, which was issued this morning before the market opened, and is available on our website at www.mgpingredients.com.

除非法律要求，否則本公司不承擔升級電話會議期間所作任何前瞻性陳述的義務。此外，本次電話會議將提及某些非公認會計準則指標，我們認為這些指標對於評估公司績效很有用。這些指標與最具可比性的 GAAP 指標的對帳已包含在今天的收益報告中，該報告於今天上午市場開盤前發布，可在我們的網站 www.mgpingredients.com 上查閱。

At this time, I would like to turn the call over to Brandon Gall. Brandon?

現在，我想將電話轉給 Brandon Gall。布蘭登？

Thank you, Amit. Good morning, everyone. I'd like to begin by offering a few highlights from our first quarter results. I'll then share some comments on the progress we're making on the key initiatives shared on our last earnings call, to stabilize our brown goods business, reposition our Branded Spirits and ingredients businesses for growth, accelerate our company-wide productivity agenda, and fortify our balance sheet.

謝謝你，阿米特。大家早安。首先，我想介紹一下我們第一季業績的一些亮點。然後，我將就我們在上次收益電話會議上分享的關鍵舉措所取得的進展分享一些評論，以穩定我們的棕色商品業務，重新定位我們的品牌烈酒和配料業務以實現增長，加速我們全公司的生產力議程，並加強我們的資產負債表。

I'll then turn things over to Mark for a detailed review of our quarterly financials. Our first quarter results delivered an encouraging start to the year and set us on course to meet our full year guidance. While industry-wide barrel whiskey inventories remain elevated, and consumers are more cautious in the current environment, we saw signs of positive progress across all three of our businesses as our teams are focusing on our most impactful initiatives in executing with great discipline.

然後，我會將事情交給馬克來詳細審查我們的季度財務狀況。我們第一季的業績為今年帶來了令人鼓舞的開端，並使我們有望實現全年目標。儘管全行業桶裝威士忌庫存仍然很高，而且消費者在當前環境下也更加謹慎，但我們看到所有三個業務都出現了積極進展的跡象，因為我們的團隊正專注於最有影響力的舉措，並以嚴格的紀律執行。

These early signs of stabilization are encouraging and give us confidence that the proactive steps we're taking are beginning to take hold. Our productivity initiatives are off to a strong start, and we are leaning harder on our competitive strengths and positioning, enabling us to reaffirm our 2025 outlook. At the same time, we also took meaningful steps to fortify our balance sheet and further increase our financial flexibility during the first half of the year.

這些早期的穩定跡象令人鼓舞，讓我們相信，我們正在採取的積極措施正在開始發揮作用。我們的生產力計劃開局良好，我們正更加依靠我們的競爭優勢和定位，這使我們能夠重申我們的 2025 年展望。同時，我們也在上半年採取了有意義的措施來加強我們的資產負債表並進一步提高我們的財務靈活性。

As for the first quarter of 2025, results were in line with our expectations. We believe this sets us up for improved performance throughout the rest of the year. Consolidated sales and adjusted EBITDA decreased 29% and 46% respectively from the prior year period, primarily due to the expected decline in the Distilling Solutions performance and cadence of the planned rebound in Ingredient Solutions results. Branded Spirits segment sales declined by 4%, but our Premium Plus portfolio posted solid growth.

至於2025年第一季度，業績符合我們的預期。我們相信這將為我們在今年剩餘時間內的業績提升奠定基礎。綜合銷售額和調整後 EBITDA 分別較去年同期下降 29% 和 46%，主要原因是蒸餾解決方案業績預期下滑以及原料解決方案業績計劃反彈的節奏。品牌烈酒部門銷售額下降了 4%，但我們的 Premium Plus 產品組合實現了穩健成長。

Adjusted earnings per common share declined to $0.36 per share, while operating cash flows increased by nearly 82% to $44.7 million. I'll now take a moment to highlight the current operating environment and the progress we're making against each of our key initiatives.

調整後每股普通股收益下降至每股 0.36 美元，而經營現金流成長近 82% 至 4,470 萬美元。現在，我將花點時間重點介紹當前的營運環境以及我們在每項關鍵措施方面所取得的進展。

Starting with the Branded Spirits segment. Our key initiative for our Branded Spirits segment this year is focus. To focus on fewer but more attractive growth opportunities within our branded portfolio. Our Premium Plus portfolio continues to be the growth engine of the Branded Spirits segment, and we believe our Penelope, El Mayor, and Rebel 100 brands are particularly well positioned to benefit from our focus initiative.

從品牌烈酒部分開始。我們今年對品牌烈酒部門的主要舉措是集中精力。專注於我們品牌組合中數量較少但更具吸引力的成長機會。我們的 Premium Plus 產品組合繼續成為品牌烈酒領域的成長引擎，我們相信我們的 Penelope、El Mayor 和 Rebel 100 品牌特別適合從我們的重點舉措中受益。

After demonstrated strong growth in 2024, these brands were the primary drivers of the 7% growth in our Premium Plus portfolio during the first quarter, as we refocused our brand investments behind our best opportunities. These actions, which include targeted digital campaigns, key sponsorship and sampling activations, and sharper in-store execution are expected to expand consumer and trade awareness and engagement for these brands.

在 2024 年實現強勁成長後，這些品牌成為我們第一季 Premium Plus 產品組合成長 7% 的主要驅動力，因為我們將品牌投資重新集中在最佳機會上。這些舉措包括有針對性的數位行銷活動、關鍵贊助和樣品活動以及更精準的店內執行，預計將擴大消費者和貿易商對這些品牌的認知度和參與度。

Penelope's momentum continued with another quarter of strong growth. Innovation is a key component of the Penelope brand, and that trend continued with the launches of Penelope Wheated and Penelope ready-to-serve cocktails during the quarter. Penelope Wheated bourbon is off to a strong start in several key markets, with plans to further expand distribution over the coming months.

佩內​​洛普的勢頭繼續保持，又一個季度實現了強勁增長。創新是 Penelope 品牌的關鍵組成部分，這一趨勢在本季度隨著 Penelope Wheated 和 Penelope 即飲雞尾酒的推出而得以延續。Penelope Wheated 波本威士忌在幾個主要市場取得了良好的開端，並計劃在未來幾個月進一步擴大分銷。

Penelope ready-to-serve is the brand's first foray into the fast-growing prepared cocktail segment. It's now available in select markets, in the Penelope Peach Old Fashioned flavor, with plans to expand to additional markets and flavors throughout the summer.

Penelope 即飲雞尾酒是該品牌首次進軍快速成長的調製雞尾酒領域。目前，該產品已在部分市場推出，有 Penelope Peach Old Fashioned 口味，並計劃在整個夏季擴展到更多市場和口味。

Our Rebel 100 premium offering also continues to gain momentum as we realign our Rebel brand. Our partnership with Richard Childress Racing, and the No. 8 Kyle Busch race car is enabling Rebel 100 to expand into markets and channels that are aligned with targeted consumer cohorts for this brand. Tequila continues to expand its share of the total spirits category, and our premium Tequila brand, El Mayor is well positioned to benefit from this trend.

隨著我們重新調整 Rebel 品牌，我們的 Rebel 100 高階產品也持續獲得發展動力。我們與 Richard Childress Racing 以及 8 號 Kyle Busch 賽車的合作使 Rebel 100 能夠擴展到與該品牌目標消費者群體相符的市場和通路。龍舌蘭酒在整個烈酒類別中的份額持續擴大，而我們的高端龍舌蘭酒品牌 El Mayor 則有望從這一趨勢中受益。

We're launching updated packaging for El Mayor, including a new bottle in expanded sizes to complement our 750 ml offering. The updated packaging is based on feedback in collaboration with our key partners. It is expected to lift El Mayor shelf presence in in-store merchandising activities. As we look ahead, we have a pipeline of exciting innovation to further strengthen our Tequila portfolio and amplify our portfolio's rich heritage and craftsmanship. At the same time and as expected, sales of our mid in value tier brands declined during the quarter.

我們正在為 El Mayor 推出更新的包裝，包括更大尺寸的新瓶，以補充我們的 750 毫升產品。更新後的包裝是根據我們與主要合作夥伴合作的回饋而製定的。預計此舉將提升 El Mayor 在店內銷售活動中的貨架存在感。展望未來，我們擁有一系列令人興奮的創新，可以進一步加強我們的龍舌蘭酒產品組合，並擴大我們產品組合的豐富傳統和工藝。同時，正如預期的那樣，我們中端品牌的銷售額在本季出現下滑。

This ongoing decline is consistent with overall consumer trends. However, we are taking appropriate actions intended to reduce this rate of decline, while opportunistically meeting consumers where they are in the current economic environment. For our Distilling Solutions segment, the main initiative is to strengthen our partnerships with customers. While brown goods volumes and pricing were down during the quarter, they were consistent with our expectations.

這種持續的下降與整體消費趨勢一致。然而，我們正在採取適當的措施來降低這種下降速度，同時在當前的經濟環境下抓住機會滿足消費者的需求。對於我們的蒸餾解決方案部門，主要措施是加強與客戶的合作夥伴關係。雖然本季棕色商品的銷售和價格有所下降，但與我們的預期一致。

As I mentioned on the fourth quarter conference call, we're taking decisive, proactive actions designed to de-risk our brown goods business. These actions, which include working with customers to rely on their volume needs at market-based pricing are resonating.

正如我在第四季電話會議上提到的，我們正在採取果斷、主動的行動，旨在降低棕色家電業務的風險。這些舉措引起了共鳴，其中包括與客戶合作，以市場為基礎的定價來滿足他們的批量需求。

Our partnership-first approach is leading to more collaborative and constructive discussions, and in many cases, amending and extending supply contracts. This is an encouraging trend that seemed less likely just a few months ago. We're also taking steps to improve our partnership with craft customers, which has long been the foundation of MGP's brown goods heritage. We're tailoring solutions to attract new and past customers, and to establish MGP as their preferred brown goods partner.

我們的合作優先方法正在帶來更多協作性和建設性的討論，並且在許多情況下修改和延長供應合約。這是一個令人鼓舞的趨勢，但就在幾個月前，這種趨勢似乎還不太可能出現。我們也正在採取措施改善與手工藝品客戶的合作關係，這長期以來一直是 MGP 棕色商品傳統的基礎。我們正在客製化解決方案來吸引新舊客戶，並將 MGP 打造為他們首選的棕色商品合作夥伴。

At the same time, our efforts to optimize our distillery cost structure are off to a good start, helping us cushion the impact of lower brown goods volumes and enabling us to manage margins and offer more competitive prices to our customers.

同時，我們優化釀酒廠成本結構的努力取得了良好的開端，幫助我們緩解了棕色商品產量下降的影響，並使我們能夠管理利潤率並為客戶提供更具競爭力的價格。

We continue to be disciplined with our brown goods production and inventories. Our net whiskey put away is expected to be down materially in 2025 as compared to 2024, reflecting our decision to right size excess inventory, and further improve cash flows. The overall American whiskey category is also responding to the current environment with deeper production cuts. The most recent TTV production data, which was released after our fourth quarter earnings call, is through the end of December 2024.

我們將繼續嚴格控制棕色商品的生產和庫存。與 2024 年相比，我們 2025 年的威士忌淨庫存預計將大幅下降，這反映了我們決定調整過剩庫存規模並進一步改善現金流。整個美國威士忌產業也正在透過進一步減產來應對當前局勢。我們第四季財報電話會議後發布的最新 TTV 生產數據截至 2024 年 12 月底。

This production data shows an increasing rate of decline in industry production volumes, with total whiskey production down 4% for the full year, down 8% for the last six months of 2024, and down 15% in the last three months of 2024. These declines are consistent with several recent news, articles about closures or furloughs by a number of whiskey distilleries.

該生產數據顯示，產業產量下降速度不斷加快，全年威士忌總產量下降 4%，2024 年最後六個月下降 8%，2024 年最後三個月下降 15%。這些下降趨勢與最近幾條有關多家威士忌酒廠關閉或休假的新聞和文章一致。

While it's difficult to accurately predict the timing and extent of the production reset, we believe the actions we are seeing across the industry are a clear signal that rationalization is underway. We believe the combination of scale, quality, reliability, and customization that we bring to our brown goods customers is unmatched in the industry.

雖然很難準確預測生產重置的時間和程度，但我們相信，我們看到的整個產業的行動清楚地表明合理化正在進行中。我們相信，我們為棕色家電客戶帶來的規模、品質、可靠性和客製化組合在業界是無與倫比的。

We also believe that our proactive actions position us well to emerge with a stronger competitive position and give us confidence with our full year sales and profitability outlook for the Distilling Solutions segment. Turning to our Ingredient Solutions segment. Our key initiative here is execution. As expected, quarterly sales were impacted by supply disruption resulting from adverse weather and complexities associated with the closure of the Atchison distillery, as well as the commercialization of new customers.

我們也相信，我們的積極行動將使我們具備更強的競爭地位，並使我們對蒸餾解決方案部門的全年銷售和盈利前景充滿信心。轉向我們的成分解決方案部分。我們在此的關鍵舉措是執行。正如預期的那樣，季度銷售額受到惡劣天氣造成的供應中斷、阿奇森釀酒廠關閉帶來的複雜因素以及新客戶商業化的影響。

That said the quarter was largely in line with our expectations, and we expect sequential improvement in the second quarter as projects come online and customer order patterns normalize. Underlying demand for our specialty ingredients remain strong, and we're executing with great urgency.

也就是說，本季基本上符合我們的預期，隨著專案上線和客戶訂單模式正常化，我們預計第二季將持續改善。對我們的特種原料的潛在需求仍然強勁，我們正在緊急執行。

Our Fibersym branded specialty starch continues to gain traction, with food manufacturers seeking FDA approved dietary fiber solutions. In specialty proteins, we're making good headway with new customers in North America, especially in the plant-based and functional food categories.

我們的 Fibersym 品牌特殊澱粉繼續受到關注，食品製造商正在尋求 FDA 批准的膳食纖維解決方案。在特殊蛋白質方面，我們在北美新客戶方面取得了良好進展，尤其是在植物性和功能性食品類別中。

Operationally, we're executing several key initiatives. Our Deep Well project is fully operational, and our new biofuel facility is on track to go live in the second half of 2025. We believe these investments will reduce disposal costs, improve efficiency and further differentiate our capabilities in a competitive market.

在營運方面，我們正在執行幾項關鍵措施。我們的深井計畫已全面投入運營，我們的新生物燃料設施預計將於 2025 年下半年投入使用。我們相信這些投資將降低處置成本、提高效率並進一步在競爭激烈的市場中脫穎而出。

At the same time, we're increasing investments in our ingredients facility that are designed to increase throughput, improve reliability, and further streamline operations. Our teams are energized. Our customer pipeline is growing, and our commercial execution is improving. We're fostering operational execution with greater cross-functional collaboration to increase transparency, accountability and responsiveness.

同時，我們正在增加對原料設施的投資，旨在提高產量、提高可靠性並進一步簡化操作。我們的團隊充滿活力。我們的客戶管道不斷擴大，我們的商業執行力也不斷提高。我們正在透過加強跨職能協作來促進營運執行，以提高透明度、責任感和回應能力。

We believe these actions will help to unlock additional growth opportunities and further solidify our position as a leading specialty wheat ingredient supplier. Despite the soft quarter, we believe the Ingredient Solutions segment is well positioned for stronger performance for the remainder of the year.

我們相信這些舉措將有助於釋放更多的成長機會，並進一步鞏固我們作為領先的特種小麥原料供應商的地位。儘管本季表現疲軟，但我們相信，配料解決方案部門已做好準備，在今年剩餘時間內取得更強勁的業績。

Turning now to our financial position. We made substantial progress on our initiative to fortify our balance sheet and enhance our liquidity with the upsizing of our credit facility, and the extension of our private placement shelf on favorable terms.

現在來談談我們的財務狀況。透過增加信貸額度以及以優惠條件延長私募期限，我們在加強資產負債表和增強流動性的措施上取得了實質進展。

Mark will provide more details on this in a moment, but I'm encouraged by the liquidity and financial flexibility the amended facilities provide in support of our growth agenda and other capital needs. Our balance sheet remains strong with net debt leverage well within our target range.

馬克稍後將提供更多有關此問題的細節，但我對修改後的安排為支持我們的成長議程和其他資本需求所提供的流動性和財務靈活性感到鼓舞。我們的資產負債表依然強勁，淨債務槓桿率遠低於我們的目標範圍。

We continue to generate solid operating cash flow, and we remain disciplined in our capital allocation, including working capital and CapEx. Our initiative to drive greater productivity across the enterprise is also taking hold. We have high productivity targets for the quarter and full year, and I'm pleased with our team's dedication and progress on this initiative.

我們持續產生穩健的營運現金流，並在資本配置方面保持紀律，包括營運資本和資本支出。我們推動整個企業提高生產力的措施也正在發揮成效。我們對本季和全年的生產力目標都很高，我對我們團隊在這項計劃上的奉獻精神和所取得的進展感到滿意。

Our teams are identifying new efficiencies throughout the supply chain, streamlining processes and working to leverage our scale and capabilities to generate additional savings. While it's early days, we believe these efforts are laying the foundation for stronger execution of our strategic initiatives.

我們的團隊正在尋找整個供應鏈中的新效率，簡化流程並努力利用我們的規模和能力來創造額外的節省。雖然還處於早期階段，但我們相信這些努力為更有力地執行我們的策略性舉措奠定了基礎。

With respect to tariffs, at present, based on what has been formally announced, we do not expect tariffs to have a material impact on our full year results. We will continue to closely monitor the tariff environment, particularly related to its potential impact on consumer confidence and purchasing behavior.

關於關稅，目前，根據已經正式宣布的情況，我們預計關稅不會對我們的全年業績產生重大影響。我們將繼續密切關注關稅環境，特別是其對消費者信心和購買行為的潛在影響。

Similar to our industry peers, we're not completely immune to tariff impacts, and are looking across our supply chain for additional opportunities to mitigate any potential headwinds. Given the encouraging first quarter results, we are reaffirming our 2025 guidance as we continue to expect net sales in the $520 million to $540 million range; adjusted EBITDA in the $105 million to $115 million range; and adjusted basic EPS in the $2.45 to $2.75 range; with average shares outstanding of approximately 21.3 million; in full year effective tax rate of approximately 25%.

與業內同業類似，我們並非完全不受關稅的影響，因此我們正在整個供應鏈中尋找更多機會來減輕任何潛在的不利因素。鑑於第一季業績令人鼓舞，我們重申 2025 年指引，預計淨銷售額將繼續保持在 5.2 億美元至 5.4 億美元之間；調整後的 EBITDA 在 1.05 億美元至 1.15 億美元之間；調整後基本每股收益在 2.45 美元至 2.75 美元之間全年平均流通股；

Let me now hand it over to Mark for a review of our first quarter results.

現在，讓我將第一季的業績報告交給馬克來審查。

Thank you, Brandon. For the first quarter of 2025, consolidated sales decreased 29% to $121.7 million, compared to the year ago period. Within our segments, Branded Spirits sales decreased by 4%. Our mid and value price brands declined by double digits during the quarter due to lower sales of certain Tequila, liqueur, and cordials brands within those price tiers. While our Premium Plus sales increased by 7%, reflecting continued momentum in select American Whiskey and Tequila brands.

謝謝你，布蘭登。2025 年第一季度，綜合銷售額與去年同期相比下降 29% 至 1.217 億美元。在我們的細分市場中，品牌烈酒的銷售額下降了 4%。由於某些價格範圍內的龍舌蘭酒、利口酒和甜酒品牌的銷量下降，我們的中檔和超值品牌在本季度的銷量下降了兩位數。我們的 Premium Plus 銷量成長了 7%，反映出精選美國威士忌和龍舌蘭酒品牌的持續成長動能。

Distilling Solutions segment sales declined by 45%, primarily driven by a 49% decline in brown goods sales. First quarter warehouse service sales increased by 2%, while white goods sales declined by 51%, due to the phasing out of a number of white goods customer contracts in the wake of the Atchison distillery closure as well as reduced production volumes of dried distillers grain.

蒸餾解決方案部門的銷售額下降了 45%，主要原因是棕色商品銷售額下降了 49%。第一季倉儲服務銷售額成長了 2%，而白色家電銷售額下降了 51%，這是由於阿奇森釀酒廠關閉後大量​​白色家電客戶合約的逐步取消以及乾酒糟產量的減少。

Ingredient Solutions sales decreased by 26% during the first quarter, driven by decreased sales volume of specialty wheat starches and decreased net price mix of specialty wheat proteins. The declines in specialty wheat starches and proteins were impacted by supply challenges resulting from adverse weather and complexities associated with the closure of the Atchison distillery as well as the timing of commercialization of new customers.

第一季度，原料解決方案銷售額下降了 26%，因為特種小麥澱粉銷售下降以及特種小麥蛋白淨價格組合下降。特種小麥澱粉和蛋白質的下降受到惡劣天氣造成的供應挑戰、阿奇森釀酒廠關閉帶來的複雜因素以及新客戶商業化時機的影響。

Consolidated gross profit decreased 31% to $43.3 million, primarily due to lower gross profits in the Distilling Solutions and Ingredient Solutions operating segments. Gross margin declined by 120 basis points to 35.6%. First quarter SG&A expense was relatively flat, up just 1% compared to the prior year period with a modest decline on an adjusted basis.

綜合毛利下降 31% 至 4,330 萬美元，主要原因是蒸餾解決方案和配料解決方案營運部門的毛利下降。毛利率下降120個基點至35.6%。第一季銷售、一般及行政費用相對持平，與去年同期相比僅上漲 1%，調整後略有下降。

Branded Spirits segment advertising and promotion expense of $7.7 million declined 1% from the year ago period. As we streamline our brand investments, we continue to expect our full year A&P to be down in 2025 compared to 2024. However, during the first quarter, A&P spend for our Penelope, El Mayor and Rebel brands collectively was higher than the year ago period as we are intentionally focusing on our most impactful opportunities within the segment.

品牌烈酒部門的廣告和促銷費用為 770 萬美元，較去年同期下降 1%。隨著我們精簡品牌投資，我們預計 2025 年全年廣告和促銷費用將較 2024 年下降。然而，在第一季度，我們用於 Penelope、El Mayor 和 Rebel 品牌的廣告與宣傳支出總額高於去年同期，因為我們有意將重點放在該領域最具影響力的機會上。

We expect A&P spend for these three key brands collectively to be higher for the full year 2025, compared to 2024. First quarter adjusted EBITDA decreased 46% to $21.8 million as lower gross profits more than offset reductions in adjusted SG&A and advertising and promotion costs.

我們預計，2025 年全年這三個主要品牌的廣告和宣傳支出總額將比 2024 年更高。第一季調整後的 EBITDA 下降 46% 至 2,180 萬美元，因為毛利的下降超過了調整後的 SG&A 以及廣告和促銷成本的減少。

Net income for the first quarter decreased to a loss of $3.1 million due to lower gross profit and a $10.6 million increase in the fair value of the contingent consideration liability, reflecting a stronger-than-expected performance of the Penelope brand. On an adjusted basis, net income decreased 68% to $7.8 million. Basic earnings per common share decreased to a loss of $0.14 per share, while adjusted basic EPS decreased 66% to $0.36 per share.

由於毛利潤下降以及或有對價負債公允價值增加 1,060 萬美元，第一季淨收入減少至虧損 310 萬美元，反映出 Penelope 品牌的表現強於預期。經調整後，淨收入下降 68% 至 780 萬美元。每股基本收益下降至每股虧損 0.14 美元，而調整後每股基本收益下降 66% 至每股 0.36 美元。

Please note that our adjusted basic EPS included a $0.07 per share unfavorable tax impact related to the vesting of share-based awards granted in prior years during periods of higher stock prices. We continue to prioritize strong cash generation by managing our working capital and reducing our barrel inventory put away.

請注意，我們調整後的基本每股盈餘包括每股 0.07 美元的不利稅收影響，該影響與前幾年股價較高期間授予的股權獎勵的歸屬有關。我們繼續優先考慮透過管理營運資金和減少庫存來實現強勁的現金產生。

Our first quarter cash flow from operations was $44.7 million, up from $24.6 million during the prior year period, driven primarily by favorable working capital changes. Our net whiskey put away was $12 million during the quarter, which was up versus the prior year period due primarily to the timing of whiskey production within the year as our planned reductions in production volume are more heavily weighted towards the remainder of the year.

我們第一季的營運現金流為 4,470 萬美元，高於去年同期的 2,460 萬美元，主要原因是營運資本變動有利。本季度，我們的威士忌淨庫存為 1200 萬美元，較上年同期有所上升，這主要是因為年內威士忌生產的時間安排，因為我們計劃的產量削減主要集中在今年剩餘時間內。

We continue to expect full year net whiskey put away of $15 million to $20 million, down significantly from $33 million in 2024. Capital expenditures declined 38% versus the prior year period to $8.1 million for the first quarter.

我們仍預計全年威士忌淨收入將達到 1,500 萬至 2,000 萬美元，較 2024 年的 3,300 萬美元大幅下降。第一季資本支出較去年同期下降 38% 至 810 萬美元。

We continue to expect full-year 2025 capital expenditures of $36 million, representing a nearly 50% decline compared to 2024. Our balance sheet remains healthy, and we are well capitalized with debt totaling $297.1 million as of the end of the first quarter, after net payments on debt of $26.6 million during the quarter, leaving us with $548.4 million in availability under our debt facilities.

我們繼續預期 2025 年全年資本支出為 3,600 萬美元，與 2024 年相比將下降近 50%。我們的資產負債表依然健康，我們的資本充足，截至第一季末，債務總額為 2.971 億美元，在本季度償還債務淨額 2,660 萬美元後，我們的債務融資工具下可用資金為 5.484 億美元。

We ended the quarter with a cash position of $20.1 million, and our net debt leverage ratio remained largely stable at approximately 1.6 times. On April 24, 2025, we successfully upsized our credit facility from $400 million to $500 million and extended its maturity from 2026 to 2030.

本季末，我們的現金狀況為 2,010 萬美元，淨債務槓桿率基本保持穩定，約 1.6 倍。2025 年 4 月 24 日，我們成功將信貸額度從 4 億美元增加到 5 億美元，並將其到期日從 2026 年延長至 2030 年。

We also increased the size of the accordion feature from $100 million to $200 million. In addition, we extended our shelf for issuing up to $250 million of senior secured promissory notes from 2026 to 2028. These increased commitments at competitive terms are a testament to the strength of our balance sheet and give us additional financial flexibility to address our cash needs which include the expected settlement of our contingent consideration liability related to the Penelope acquisition, the refinancing of our convertible notes, if desired and the execution of our strategic growth agenda.

我們也將手風琴功能的規模從 1 億美元增加到 2 億美元。此外，我們還將發行高達 2.5 億美元優先擔保本票的期限從 2026 年延長至 2028 年。這些以有競爭力的條件增加的承諾證明了我們資產負債表的實力，並為我們提供了額外的財務靈活性，以滿足我們的現金需求，其中包括與 Penelope 收購相關的或有對價負債的預期結算、可轉換票據的再融資（如果需要）以及執行我們的戰略增長議程。

With that, let me hand it over to Brandon before opening for your questions.

在回答你們的問題之前，請容許我把它交給布蘭登。

Thanks, Mark. To close, we are pleased with our start to 2025. The first quarter unfolded as expected with early signs of stabilization across all three segments. We're executing our strategy with discipline and agility, leaning into our premium brand focus, enhancing customer partnerships in Distilling Solutions, and revitalizing Ingredient Solutions. Branded Spirits is now our largest segment, and we believe it will be the foundation of our growth as we continue to move forward on our journey toward becoming a premier Branded Spirits company.

謝謝，馬克。最後，我們對 2025 年的開始感到滿意。第一季的進展符合預期，三個部門都出現了初步穩定的跡象。我們正以紀律和敏捷性執行我們的策略，傾向於我們的高端品牌重點，加強蒸餾解決方案中的客戶合作夥伴關係，並振興原料解決方案。品牌烈酒現在是我們最大的業務部門，我們相信，隨著我們繼續朝著成為頂級品牌烈酒公司的步伐前進，它將成為我們成長的基礎。

Earlier this month, with a focus on long-term shareholder value creation, our Board of Directors took steps to strengthen its ranks in anticipation of our next chapter of growth. Finally, I want to thank the entire MGP team for their hard work and agility. We're confident in our team, our strategy and our ability to navigate the current environment while building long-term shareholder value. That concludes our prepared remarks.

本月初，我們以長期股東價值創造為重點，採取措施加強董事會隊伍，為下一階段的成長做好準備。最後，我要感謝整個 MGP 團隊的辛勤工作和敏捷反應。我們對我們的團隊、我們的策略以及我們應對當前環境並創造長期股東價值的能力充滿信心。我們的準備好的演講到此結束。

Operator, we're ready to begin the question-and-answer portion of the call.

接線生，我們準備開始通話的問答部分。

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

謝謝。我們現在開始問答環節，（操作員指示）

Marc Torrente, Wells Fargo.

富國銀行的馬克·托倫特。

Hey, good morning, my question.

嘿，早上好，我有一個問題。

Hey Mark.

嘿，馬克。

First, just on your visibility into the outlook, I guess specifically on Distilling Solutions, you've talked about proactively working with your customers to recalibrate pricing and order volumes. Maybe how much of your customer base have you made those adjustments with? What's been the general feedback and how does that flow through to your outlook in terms of volume cadence and also the pricing resets for the year?

首先，就您對前景的了解而言，我想特別是在 Distilling Solutions 方面，您談到了主動與客戶合作以重新調整價格和訂單量。也許您對多少客戶群做出了這些調整？整體反饋如何？這對您對今年的銷售節奏和定價重置的展望有何影響？

Yeah, thanks for the question, Marc. Yeah, we introduced this concept of leaning into partnership for Distilling Solutions last quarter. And very, very, very pleased to say that the team has reached out to, and had discussions with 100% of our contracted customers this year. The vast majority of those discussions has led to either the customer confirming their current orders for volume, price and timing or modifying them in some way.

是的，謝謝你的提問，馬克。是的，上個季度我們為 Distilling Solutions 引入了這種傾向合作的概念。我們非常非常高興地宣布，今年團隊已經與 100% 的簽約客戶進行了聯繫並進行了討論。絕大多數討論都導致客戶要么確認其當前訂單的數量、價格和時間，要么以某種方式修改它們。

So the vast majority of those customers have given us feedback. They have come back to us and said, you know what, I need this volume, not that volume. Or you know what, I need this -- more of this mash bill, not that mash bill.

絕大多數客戶都向我們提供了回饋。他們回來告訴我們，你知道嗎，我需要這個卷，而不是那個卷。或者你知道嗎，我需要的是這個——更多的是這個麥芽漿賬單，而不是那個麥芽漿賬單。

My pricing is a little high compared to what I'm seeing. We'd appreciate if you can maybe give us a more competitive price. In other cases, Marc, they've asked us to say, hey, I know I'm due to purchase it this quarter. Can I maybe do it in a later quarter or vice versa.

與我所看到的相比，我的定價有點高。如果您能給我們一個更有競爭力的價格我們將不勝感激。在其他情況下，馬克，他們要求我們說，嘿，我知道我應該在這個季度購買它。我是否可以在稍後的一個季度內做這件事，反之亦然。

So any combination of those three or four opportunities we're seeing. And it's been a game changer to use our sales team's word for it, because it's changed the tenor of the conversation and the tone. And it's really opened things up.

因此，我們看到的是這三到四個機會的任意組合。用我們銷售團隊的話來說，這是一個改變遊戲規則的事件，因為它改變了談話的基調和語氣。這確實打開了局面。

In fact, not only does it give us greater visibility for 2025, but some of these conversations have even led to extensions beyond '25. So on that latter point, we still have more work to do, and a lot more conversations to have, but the signs are very encouraging, and the team is doing a great job.

事實上，它不僅讓我們對 2025 年有了更清晰的認識，而且其中一些對話甚至導致了 2025 年以後的延伸。因此，就後一點而言，我們還有很多工作要做，還有很多對話要進行，但跡象非常令人鼓舞，團隊做得很好。

Okay. I appreciate the color there. And then I guess, is your outlook for the segment still in line with prior expectations? And then just any additional color on margins, specifically for Distilling Solutions. They are well ahead of expectations, at least from our end.

好的。我很欣賞那裡的色彩。那麼我想，您對該領域的展望是否仍符合先前的預期？然後，只需在邊緣添加任何額外的顏色，專門用於蒸餾解決方案。他們的表現遠遠超出了我們的預期，至少從我們的角度來看是如此。

How did those come in versus your own expectations? How much of that is from your cost savings actions versus maybe baseline business performing better? And how do you see that progressing through the year? Thanks.

與您自己的期望相比，這些結果如何？其中有多少是來自於您的成本節約行動，還是來自於基準業務表現較好？您認為今年的進度如何？謝謝。

Yeah, so firstly, I'll start and Marc and I'll let Mark chime in with some of the details. So firstly, the vast majority of those discussions that have resulted into either confirmed or modifications, and most of those have been modifications. That's all contemplated in our forward guide, Marc. So when we put those numbers together back in February and last spoke, we really the team really took a hard pause to think, okay, what is going to get it done in the market.

是的，首先，我先開始，然後我請馬克和馬克介紹一些細節。首先，絕大多數討論都已確認或修改，其中大多數都已修改。這一切都在我們的前瞻性指南中考慮到了，馬克。因此，當我們在二月將這些數字匯總在一起並進行最後一次對話時，我們團隊真的花了很長時間去思考，好吧，我們在市場上要做什麼。

And so we are still seeing things within those expectations. So the pricing, volume, everything I just mentioned is contemplated. Then as far as -- Mark, I'll let you take the numbers here for how it relates to the year.

因此，我們仍然看到這些預期之內的事。因此，定價、數量以及我剛才提到的一切都是經過考慮的。那麼就——馬克，我讓你看看這裡的數字與年份有何關係。

Yeah. As far as our full-year expectations for the Distilling Solutions segment, those still remain. We communicated we expect sales for the year to be down 50%; gross profit to be down 65% for the year for the segment. That's still what we're expecting. When you look at the first quarter, sales and gross profit were only down 45%.

是的。就我們對蒸餾解決方案部門的全年預期而言，這些預期仍然保持不變。我們表示預計今年的銷售額將下降 50%；該部門全年毛利將下降65%。這仍然是我們所期待的。從第一季來看，銷售額和毛利僅下降了 45%。

But again, I believe, as we mentioned in February, that's a cadence. We expect the Distilling Solutions segment to have stronger first half results than second half, due to timing of contracts and how those play out and fall off in the back half of the year.

但我再次相信，正如我們在二月提到的那樣，這是一個節奏。我們預計蒸餾解決方案部門上半年的業績將強於下半年，這歸因於合約的時間表以及合約在下半年的執行情況和失效情況。

And just add to that, the modifications we're speaking of, in a lot of cases, weren't adjusted in Q1, but they will be adjusted as the year goes on to. So that's what we're seeing for that segment in 2025, Marc.

除此之外，我們所說的修改在許多情況下在第一季沒有進行調整，但隨著時間的推移它們將會進行調整。這就是我們在 2025 年看到的這個領域的情況，馬克。

Okay, understood. Thanks.

好的，明白了。謝謝。

Thanks, Marc.

謝謝，馬克。

Bill Chappell, Truist Securities.

Truist Securities 的 Bill Chappell。

Thanks, good morning.

謝謝，早安。

Hi, Bill.

你好，比爾。

Just some maybe quantification on a few of the issues, and I'll kind of rapid fire. One, what percentage or where are we in terms of the new distillate negotiations? And when do you think that to be at 99%? Two, you talked about, hey, we're taking steps to stabilize or improve our Branded Spirits, the mid- and lower tier. Can you maybe give us some examples of what you're doing, and what you're doing differently, and how that should change in the near term?

我可能只是對一些問題進行量化，然後我會快速回答。第一，就新餾分油談判而言，我們的佔比是多少，或者說我們處在什麼位置？您認為什麼時候能達到 99%？第二，您提到，我們正在採取措施穩定或改善我們的品牌烈酒，即中低端產品。您能否給我們舉一些例子，說明您正在做什麼，您正在做什麼不同的事情，以及這些事情在短期內應該如何改變？

And then three, on Ingredient Solutions. I guess I didn't really understand or maybe you could explain to us why after this quarter you're more optimistic that things will improve later this year. So some examples or something behind that just to give us confidence, because that's the business we have kind of least visibility into. Thanks so much.

第三，關於成分解決方案。我想我真的不明白，或者也許您可以向我們解釋一下，為什麼在本季度之後您會更加樂觀地認為今年晚些時候情況會有所改善。因此，一些例子或背後的一些東西只是為了給我們信心，因為這是我們最不了解的業務。非常感謝。

Yeah, thanks for the question, Bill. So on Distilling Solutions, let's start there. That's where you started. We expect to come to this conclusion as soon as we can on the remaining 25% or so of customers that we're still negotiating for this year's contract. But the good news is that we're not hearing anything that's making us think differently about our guide at this point in time. So we feel that's very, very encouraging.

是的，謝謝你的提問，比爾。那麼，關於提煉解決方案，我們就從這裡開始吧。這就是你的起點。我們希望盡快就今年合約剩餘的約 25% 的客戶（我們仍在與他們協商）得出這一結論。但好消息是，我們目前沒有聽到任何讓我們對我們的指南產生不同看法的消息。因此我們覺得這非常非常令人鼓舞。

So we'll wait until next quarter's call. But I think if we continue to make the progress we're making, we're going to have a good answer by then. So secondly, on Branded Spirits, mid-in-value stabilization. Yeah, a lot of the Q1 softness was anticipated by us, but we do know that we've got to take measures to reduce the desel of those sales declines. So what we're doing is, what we've already talked about is putting in more discount pricing and price support for some of the mid-in-value brands.

因此我們將等到下個季度的電話會議。但我認為，如果我們繼續取得進展，到那時我們就會得到一個很好的答案。其次，對於品牌烈酒而言，其價值處於中等穩定水平。是的，我們預料到了第一季的銷售疲軟，但我們確實知道必須採取措施來減少銷售下滑的影響。因此，我們正在做的是，我們已經討論過的是為一些中等價值品牌提供更多的折扣定價和價格支援。

It's very competitive in some of those areas, specifically for Tequilas, cordials and liqueurs. And so a lot of that price support was contemplated, and it's still making its way through the market, and we expect that to take hold in subsequent quarters. And then finally, Bill, on your ingredients question, yeah, so the quarter as tough as it was, it came in largely within our expectations.'

在某些領域，尤其是龍舌蘭酒、甜酒和利口酒，競爭非常激烈。因此，許多價格支撐都經過了考慮，並且仍在市場上發揮作用，我們預計它將在接下來的幾個季度中發揮作用。最後，比爾，關於你的原料問題，是的，所以這個季度雖然很艱難，但基本上還是在我們的預期之內。 」

And we called out the whys on the Q4 call, namely the weather impact from the cold and snow we saw in early January. We also talked about the customer choppiness. Both those things played out. What we also had additionally was some operational uptime issues, of which we are addressing and solving through our CapEx programs this year.

我們在第四季度電話會議上指出了原因，即 1 月初的寒冷和降雪造成的天氣影響。我們也討論了客戶的不穩定問題。這兩件事都發生了。此外，我們還遇到了一些營運正常運行時間問題，我們今年將透過資本支出計劃解決這些問題。

So what gives us confidence on that front is, first, let's start with operations. So operationally, we have two really important projects that we need to complete this year. The first one is the deep well project that was completed in the first quarter. The second one being the biofuel facility, that is still on schedule to be up and running, and having an impact on the second half of the year for that business.

因此，讓我們對此充滿信心的是，首先，讓我們從營運開始。因此從營運角度來看，我們有兩個非常重要的項目需要在今年完成。第一個是第一季完成的深井工程。第二個是生物燃料設施，該設施仍按計劃投入運行，並將對該業務下半年產生影響。

In fact, I was in Atchison with the team last week. The spill was delivered and a ceremony was had for the employees there. So we are making great progress on those projects. Additionally, staying with operations, we need to have more reliability, and we need to improve our overall equipment effectiveness.

事實上，上週我和團隊一起在阿奇森。洩漏物被送往醫院，醫院為那裡的員工舉行了一場紀念儀式。因此我們在這些項目上取得了巨大進展。此外，在營運方面，我們需要提高可靠性，並提高整體設備效率。

And that said, we've got the largest amount of maintenance and reliability CapEx budgeted for this year than we have in the last five or more years. So the team is very focused there on solving for those two projects and improving our reliability to get the product we need. On the commercialization front. For specialty wheat starches, the demand is there. It's been the production issues that we've had that have kept our inventories low and has been a fulfillment challenge for the team.

話雖如此，我們今年的維護和可靠性資本支出預算比過去五年或更長時間以來的預算都要高。因此，團隊非常專注於解決這兩個項目並提高我們的可靠性以獲得我們需要的產品。在商業化方面。對於特種小麥澱粉，需求是存在的。我們遇到的生產問題導致我們的庫存處於低位，這對團隊來說是一個履行挑戰。

So as we improve our operations and our reliability, that should take care of itself. Secondly, on specialty protein, for the second quarter in a row, we saw a rise growth from a volume standpoint. However, due to the customer onboarding choppiness that we mentioned, the customer mix in the quarter wasn't the optimal level and where we expect it to be.

因此，隨著我們改善營運和可靠性，這個問題就會迎刃而解。其次，就特種蛋白質而言，我們連續第二季看到其銷售量出現成長。然而，由於我們提到的客戶入職不穩定，本季的客戶組合並未達到最佳水平，也未達到我們的預期。

That being said, we expect Q2 and the subsequent quarters to get better. In fact we're already seeing orders from those right customers in April and May for Arise specialty protein. And then for our ProTerra specialty protein, the team continues to make a lot of progress there. I mentioned the three inclusions that the R&D team is developing.

話雖如此，我們預計第二季及後續季度的情況會好轉。事實上，我們已經看到這些合適的客戶在四月和五月訂購了 Arise 特殊蛋白質。對於我們的 ProTerra 特種蛋白質，團隊繼續在那裡取得很大進展。我提到了研發團隊正在開發的三個內含物。

Those are ready to go, and are undergoing trial with potential customers as we speak. And the team is still very, very dedicated and focused on bringing in customers, mostly for the second half of this year, Bill. So there's a lot that gets us excited.

這些都已準備就緒，並且正在與潛在客戶進行試用。比爾，團隊仍然非常專注並專注於吸引客戶，主要是在今年下半年。所以有很多事情讓我們興奮。

We've got to execute. The theme for this segment is execution, both operationally and commercially. This team is more than capable of doing it. They've done it in the past. But operationally and commercially, they've been throwing some curveballs, but I'm very proud with how they're responding, and that's what gives us confidence.

我們必須執行。本部分的主題是執行，包括營運和商業方面的執行。這支團隊完全有能力完成這項任務。他們過去也這麼做過。但在營運和商業方面，他們一直在拋出一些曲線球，但我對他們的反應感到非常自豪，這給了我們信心。

Got it. And then just second, just kind of follow up on the new distillate business. If we're looking at it kind of as a trailing 12-month EBITDA, and it's coming down as you're renegotiating and lowering the volumes, like when do we hit a plateau? When does that, okay, this is the trough. We now know what the base case is, and we can start growing from here.

知道了。其次，我們來跟進一下新的餾分油業務。如果我們將其視為過去 12 個月的 EBITDA，並且隨著您重新談判和降低交易量，EBITDA 會下降，那麼我們什麼時候會達到平台期？那是什麼時候呢，好的，這是低谷。我們現在知道了基本情況是什麼，我們可以從這裡開始發展。

Is that end of this year? Does that move into next year? Do you understand what I'm asking? And just trying to look at that business in particular, with the negotiation of how then we can model and say, okay, this is the base case and here's where we go?

今年就這麼結束了嗎？這會延續到明年嗎？你明白我在問什麼嗎？並且只是嘗試特別關注該業務，透過談判了解我們如何建模並說，好的，這是基本情況，這就是我們要去的地方？

Yeah, great question, and that's what we talk about internally quite a bit. And we shared on our last call that the elevated inventory of barrels in the industry, we expect to that overhang to persist into 2026. That being said, we're not waiting for that to take care of itself. We're taking the proactive actions that we've been discussing.

是的，這個問題問得很好，這也是我們內部經常討論的話題。我們在上次電話會議上表示，由於產業內石油庫存增加，我們預計這種過剩狀況將持續到 2026 年。話雖如此，我們不會坐等事情自行解決。我們正在採取我們一直在討論的積極行動。

And so our goal there is to bring that plateau forward as quickly as possible. We're making great progress there. We still have more work to do. The team is operating with that partnership approach, and it's resonating. We need a little bit more time, Bill, to keep doing what we're doing, but we are seeing good signs both internally and externally.

因此，我們的目標是盡快實現這一目標。我們在那裡取得了巨大進展。我們還有更多的工作要做。該團隊正在採用這種合作方式開展工作，並且產生了共鳴。比爾，我們需要更多一點時間來繼續做我們正在做的事情，但我們在內部和外部都看到了好的跡象。

We shared some of the TTV data, that's updated through the end of 2024. And the production deceleration over the course of the year was pretty dramatic, which isn't necessarily anything you'd expect to want to see, but it's the rational behavior that we're looking for in our industry. So we're starting to see the right signs of progress and stabilization, Bill. It's still a little bit too early to make a definitive call. So just give us some more time. We know we're doing the right things.

我們分享了一些 TTV 數據，這些數據已更新至 2024 年底。今年的生產減速相當劇烈，這不一定是我們希望看到的，但這是我們行業所期待的理性行為。因此，我們開始看到進步和穩定的正確跡象，比爾。現在做出最終決定還為時過早。所以請再給我們一些時間。我們知道我們正在做正確的事情。

Great. Thanks so much.

偉大的。非常感謝。

Thank you, Bill.

謝謝你，比爾。

Robert Moskow, TD Cowen.

羅伯特·莫斯科（Robert Moskow），TD Cowen。

Hi, Seamus Cassidy, on for Rob Moskow. So on your last call, you noted that you expected Premium Plus sales within branded for the year to be roughly flattish, partially due to a cutback on sort of the allocated barrel offerings, where demand has slowed. Given the plus 7% in 1Q and you sort of noted that innovation had performed well, is it fair to say that things came in a little ahead of expectation? Or is it sort of just a timing element with regards to innovation?

大家好，我是 Seamus Cassidy，代替 Rob Moskow 上場。因此，在您上次通話中，您指出，您預計今年品牌內的 Premium Plus 銷售額將大致持平，部分原因是分配的桶裝供應減少，需要已經放緩。鑑於第一季成長了 7%，而且您指出創新表現良好，那麼可以說事情進展略超出了預期嗎？或者它只是與創新有關的一個時間因素？

Yeah, I think great question. It was a very encouraging quarter for Premium Plus. It was led by Penelope's great growth, and its ability to continue using innovation as its platform to resonate with customers. But also El Mayor, and Rebel 100, and Rebel Premium also showed growth in the quarter.

是的，我認為這是個好問題。對於 Premium Plus 來說，這是一個非常令人鼓舞的季度。這是由 Penelope 的巨大成長以及其繼續利用創新作為平台來引起客戶共鳴的能力所引領的。但 El Mayor、Rebel 100 和 Rebel Premium 在本季度也實現了成長。

So a lot of that was expected, and we're very encouraged by it. But Penelope for the quarter did come in a bit above expectations, which is why we took the contingent liability up in the quarter on our balance sheet, which is a great sign. So it's too early to revise our full year outlook on where we think Premium Plus is going to come in, Seamus. But like you said, we're off to a really good start.

因此，很多事情都是在預料之中的，我們對此感到非常鼓舞。但本季的 Penelope 確實略高於預期，這就是為什麼我們在資產負債表上增加了本季的或有負債，這是一個好兆頭。因此，現在修改我們對 Premium Plus 全年前景的展望還為時過早，Seamus。但正如您所說，我們已經有了一個非常好的開始。

Understood, thanks. And then given sort of like the pricing actions within branded that you called out on mid-in-value, how should we think about the evolution of the margin profile for the segment? For a while now, there's sort of been this structural tailwind of the growing Premium Plus mix. But presumably, if you take some of those pricing actions, that would also boost volume on your mid-and-value brands. So just sort of how you're thinking about that and balancing the profit and margin implications. Thanks.

明白了，謝謝。然後，考慮到您所提到的中等價值品牌的定價行為，我們應該如何看待該細分市場的利潤率狀況的演變？一段時間以來，Premium Plus 產品組合的不斷增長帶來了結構性的順風。但據推測，如果你採取一些定價行動，這也會提高中檔品牌的銷售量。那麼，您是如何考慮這個問題並平衡利潤和利潤率影響的。謝謝。

Yeah, it sounds like you've been sitting around our table internally. That's what we're talking about quite a bit. Yeah, the price support we mentioned on the Q4 call is rolling out. It's not necessarily taking effect on the shelf as quickly as we had anticipated, but it's still making its way out to the shelf, into the consumer.

是的，聽起來你一直坐在我們桌子旁邊。這就是我們經常談論的話題。是的，我們在第四季度電話會議上提到的價格支援正在推出。它不一定會像我們預期的那樣迅速在貨架上發揮作用，但它仍然在走向貨架，進入消費者手中。

And I mentioned tequila being one of those categories within our mid-and-value brand portfolio, that's seeing some of the headwind. And I think a lot of the pricing we're seeing out in the market that's being reduced at the shelf is a result of reduction in costs, particularly agave costs.

我提到龍舌蘭酒是我們中檔品牌組合中的一個類別，它面臨一些阻力。我認為我們在市場上看到的許多貨架價格下降都是因為成本降低，特別是龍舌蘭成本降低。

So it's really, that's part of the competitive rates that we're all in. And so what I'm trying to say, Seamus, is not -- at least in some cases, reducing price doesn't necessarily mean there's going to be a one-for-one trade-off of margin in this environment.

所以這實際上是我們所處的競爭價格的一部分。所以，西莫斯，我想說的是——至少在某些情況下，降低價格並不一定意味著在這種環境下會出現一對一的利潤權衡。

Understood, thanks.

明白了，謝謝。

Thanks, Seamus.

謝謝，西莫斯。

Sean McGowan, Roth Capital.

麥高恩 (Sean McGowan)，羅斯資本 (Roth Capital)。

Thank you very much. I appreciate it. Yeah, two questions. Can you talk about whether or not you think there was any impact in terms of customer demand from anticipated tariffs? Like are there any customers that work in Europe, are they ordering more because they think there might be an increase in tariffs later even if it's not there now?

非常感謝。我很感激。是的，有兩個問題。您能否談談您是否認為預期關稅對顧客需求產生了影響？例如，有沒有在歐洲工作的客戶，他們訂購更多產品是因為他們認為即使現在沒有關稅，以後也可能會增加關稅？

Are you talking for Distilling Solutions, Sean, can you help me answer that?

肖恩，您代表 Distilling Solutions 發言嗎？您能幫我回答嗎？

Yeah, Distilling Solutions. I know it's kind of direct, and you don't have a clear view of what they're doing, but do you think there might have been any kind of a pull forward?

是的，蒸餾溶液。我知道這有點直接，而且你也不清楚他們在做什麼，但你認為可能會有任何形式的推動嗎？

Not that we're seeing. A lot of our conversations have been around contracts, as we've mentioned. And a lot of the volume and timing on those were put in place well before the tariffs in a lot of senses. So we're not necessarily seeing that. Definitely didn't see it in the quarter.

但我們看到的情況並非如此。正如我們所提到的，我們的許多談話都與合約有關。從許多方面來看，這些措施的數量和時間早在關稅實施之前就已經確定了。所以，我們不一定會看到這種情況。本季度肯定沒有看到它。

But that doesn't mean that potentially finished goods by our customers or other industry participants didn't move around, but we don't have as much insight into that.

但這並不意味著我們的客戶或其他行業參與者的潛在成品沒有流動，只是我們對此沒有太多的了解。

Okay. All right, thanks. And then the other question was, you noted the improved or, kind of a better than expected performance of Penelope. That seems like a bit of a turnaround. Weren't you talking in the last quarter about how maybe, you weren't expecting to see as much upside in Penelope as you had earlier thought, or can you talk a little bit about that?

好的。好的，謝謝。然後另一個問題是，您注意到佩內洛普的表現有所改善，或者說比預期更好。這似乎是一個小小的轉變。您在上個季度不是說過，也許您沒有預料到 Penelope 會有像您之前想像的那麼多上升空間嗎，或者您能稍微談談這個嗎？

Yeah, I appreciate that. So yeah, two things. Number one, we never said that we don't have strong expectations for Penelope. In fact, the expectations we have going into this year were very high. We did temper them back a little bit, coming into Q4. But then two things have happened. Number one, the brand really performed well in the quarter.

是的，我很感激。是的，有兩件事。首先，我們從未說過我們對佩內洛普沒有很高的期望。事實上，我們對今年的期望非常高。進入第四季後，我們確實對他們進行了一點緩和。但隨後發生了兩件事。首先，該品牌在本季的表現確實很好。

And so that's not necessarily changing our full outlook, but it's definitely, like I said to Seamus, it's a good start for the brand and for Premium Plus, for us. But what it also does because Q1 came in so strong, the accounting will say that you've got to now accelerate your contingent liability, which is what we did in the quarter.

因此，這不一定會改變我們的整體前景，但就像我對 Seamus 說的那樣，對於品牌和 Premium Plus 來說，這無疑是一個很好的開始。但由於第一季表現如此強勁，會計會說你現在必須加速你的或有負債，這就是我們在本季所做的。

So we are still very, very, very optimistic about this brand. It's performing really, really well, in a very difficult consumer backdrop, and we're excited for the things to come as it relates to Penelope.

所以我們對這個品牌還是非常非常看好。在非常困難的消費者背景下，它的表現確實非常出色，我們對與佩內洛普相關的未來發展感到興奮。

Okay, thank you very much.

好的，非常感謝。

Mitch Pinheiro, Sturdivant.

米奇‧皮涅羅 (Mitch Pinheiro)，斯特迪文特 (Sturdivant)。

Yeah, hey, good morning.

是的，嘿，早安。

Morning

早晨

Most of my questions have been asked. Just a couple here. One, when I look at the barrel distillate, it was up 16% year-over-year, even up sequentially. Is that rise solely from your own -- your Branded Spirits business? Or is there any of that coming from the Distilling Solutions?

我的大部分問題都已經被問過了。這裡只有一對夫婦。首先，當我查看桶裝餾分油時，它比去年同期增長了 16%，甚至比上一季有所增長。這種成長完全是源自於您自己的品牌烈酒業務嗎？或者其中有任何來自蒸餾解決方案的東西嗎？

Yeah, when you talk about that increase, are you talking about on the put away side?

是的，當您談到這種增長時，您指的是存放方面嗎？

Yeah.

是的。

Yeah, So Mitch, so that is solely for our branded -- in support of our Branded Spirits business. And the reason that has increased in Q1, despite what we've indicated is going to be a decrease for the full year. We're expecting $15 million to $20 million for the full year, down from $33 million last year. So the reason that's heavy in Q1 is just due to timing of production.

是的，米奇，這完全是為了我們的品牌——支持我們的品牌烈酒業務。儘管我們已經指出全年銷售額將會下降，但第一季銷售額卻有所成長。我們預計全年收入為 1500 萬至 2000 萬美元，低於去年的 3300 萬美元。因此，第一季產量大的原因只是生產時間問題。

So our planned production reductions out of our distilleries for the year have been more heavily weighted to the remainder of the year. And so as a result, our Q1 production was higher than it will be the rest of the year. And as a result, our put away in support of our brands was higher.

因此，我們計劃今年減少釀酒廠的產量，主要集中在今年剩餘時間內。因此，我們第一季的產量高於今年剩餘時間的產量。因此，我們對品牌的支持力道更大了。

Yeah, and that's all part of our productivity initiative, Mitch, where we had to move around our scheduling for to maximize efficiency and keep cost competitive. And so that's the way it played out, and I can get into a lot more detail, but I'll spare you all from that.

是的，米奇，這都是我們生產力計劃的一部分，我們必須調整我們的日程安排，以最大限度地提高效率並保持成本競爭力。事情就是這樣發生的，我可以講得更詳細，但我不會告訴你們這些細節。

But yes, so the takeaway is, it was up in the quarter, but we're still expecting $15 million to $20 million in total net put away this year, which is down from the $33 million last year, and that $15 million to $20 million is for Branded Spirits.

但是的，所以重點是，本季有所上升，但我們仍然預計今年的總淨存款額為 1500 萬至 2000 萬美元，低於去年的 3300 萬美元，而這 1500 萬至 2000 萬美元用於品牌烈酒。

So if you were to disclose the barrel distillate for your Distillery Products versus your Branded Spirits, is it fair to say that the Distillery Products business put away was down, not in the put away, but the actual level of distillate. Is that down?

因此，如果您要揭露釀酒產品與品牌烈酒的桶裝餾出物，是否可以公平地說，釀酒產品業務的庫存下降了，不是庫存下降，而是餾出物的實際水準下降。是下降了嗎？

Yeah, because there were aged sales in the quarter. So those aged sales would be a reduction in the Distilling Solutions inventory. And given the inventory that was added in the quarter was for brands, yeah, that's right. Distilling Solutions overall position would be reduced by that amount.

是的，因為本季有陳舊銷售。因此，這些過期銷售將會減少 Distilling Solutions 的庫存。考慮到本季增加的庫存是針對品牌的，是的，沒錯。Distilling Solutions 的整體地位將因此減少。

Okay. And then based on your comment, prior about production and productivity and the timing, when you're putting away this new aged distillate, is it going to have a higher cost just because your throughput for fixed cost is lower? Or are these -- or is the embedded margin in the distillate that you're putting away consistent with prior years?

好的。然後根據您先前關於生產、生產力和時間的評論，當您存放這種新陳釀的餾出物時，是否會因為固定成本的產量較低而導致成本更高？或者這些是——或者您儲存的餾分油中的嵌入利潤是否與前幾年一致？

Great question. Yes. So any overhead absorption is going to be impacted by the volume we produce. And yes, the assumption there is right, Mitch, is that the less we produce, the more that overhead has to get spread over fewer barrels, which is why we were very vocal about the productivity initiatives we are putting in place for the year on the Q4 call.

好問題。是的。因此，任何間接費用的吸收都會受到我們生產量的影響。是的，米奇，這個假設是正確的，那就是我們生產的石油越少，分攤到更少石油上的管理費用就越多，這就是為什麼我們在第四季度電話會議上非常直言不諱地談論我們今年正在實施的生產力舉措。

So a lot of that has to do with scheduling, as we mentioned, a lot of it has to do with going back to our suppliers and vendors, and having the same partnership conversation we're having with our customers. And so we're doing all the right things, I think, to make our cost structure as competitive as possible. Because we know that's what our customers need. And we feel like we're well suited from an operational standpoint to do that in a lot of ways. So we like our positioning there, as well as the tax we're taking.

因此，正如我們所提到的，這在很大程度上與日程安排有關，在很大程度上與回到我們的供應商和供應商以及與我們的客戶進行相同的合作對話有關。因此，我認為我們正在採取一切正確措施，使我們的成本結構盡可能具有競爭力。因為我們知道這就是我們的客戶所需要的。我們覺得從營運的角度來看，我們在很多方面都非常適合做到這一點。所以我們喜歡我們在那裡的定位以及我們所徵收的稅。

And that is passed on into the guidance numbers that we've given as well.

這也體現在我們給出的指導數字中。

Yes, thanks. And then, when it looks like we're starting to see a little more promotional pricing in the whiskey category, just both anecdotally, and just what I've seen in some of my data. But it appears it's more tame than I would have thought. Is there -- are producers not only industry-wide, are they kind of hanging on to price?

是的，謝謝。然後，當我們開始看到威士忌類別中出現了更多的促銷價格時，這既是軼事，也是我在一些數據中看到的。但看起來它比我想像的要溫和得多。是否存在—不僅整個產業的生產商，他們是否都堅持價格？

Or are we -- what seems to be -- we're starting to see a little more value being driven instead of you're seeing older product getting some six-year, eight-year kind of product out there as opposed to four-year. Are we starting to see sort of like the pricing almost inherent being given to consumers in the form of better value product? Is that how the industry you think is going to approach like promotion and holding on to price?

或者我們 — — 看起來是 — — 我們開始看到更多的價值被驅動，而不是看到舊款產品獲得六年、八年的產品期限，而不是四年。我們是否開始看到以更高價值產品的形式向消費者提供幾乎固有的定價？您認為這個行業會採取類似促銷和維持價格的做法嗎？

Yeah. I think that's the challenge in the spirits industry is that our product can last on the shelf at retail or even the shelf at home for quite a while. So I think a lot of consumers rather than buying that incremental bottle even for a slightly reduced price, a lot of them are just maybe tricking more of what they have at home.

是的。我認為烈酒產業面臨的挑戰是我們的產品可以在零售貨架上甚至在家裡的貨架上保存相當長一段時間。因此，我認為許多消費者並不會購買增量瓶裝水，即使價格略有降低，他們中的許多人可能只是想多買家裡已有的水。

And so it's really hard to draw that direct correlation necessarily as it relates to spirits and American whiskey, but that could explain maybe part of the behavior you're seeing now, Mitch, and that we're seeing maybe more generally. But what I will say with one example could be our Penelope brand. And what the team is doing such a great job there of doing is when they are coming forward with innovation, it is with an eye to where the consumer is today.

因此，由於烈酒和美國威士忌之間存在直接關聯，因此很難得出這種直接關聯，但這也許可以解釋你現在看到的部分行為，米奇，以及我們可能更普遍地看到的行為。但我想舉一個例子，那就是我們的 Penelope 品牌。團隊之所以做得如此出色，是因為當他們提出創新時，總是著眼於當今消費者的處境。

And there's a lot of the macro headwinds that are affecting consumers in the United States and outside the United States, as we're all aware. And when we bring forward a brand or an innovation like Penelope Wheated at that $35 to $39 price point, that's now making one of our Penelope products more approachable for a consumer that shops in that price range, which is exactly where we want them to be.

眾所周知，許多宏觀不利因素正在影響美國國內和國外的消費者。當我們推出像 Penelope Wheated 這樣的品牌或創新產品，價格定在 35 至 39 美元時，我們的 Penelope 產品就更容易被在這個價格範圍內購物的消費者接受，而這正是我們希望的。

So now we're giving them that gateway into, not only the American whiskey category, but our Penelope brand. And just one more example, and we mentioned it on the prepared remarks, Mitch, is our Penelope Peach Old Fashioned.

所以現在我們不僅為他們打開了進入美國威士忌類別的大門，還為他們打開了進入我們 Penelope 品牌的大門。再舉一個例子，米奇，我們在準備好的發言中提到過，那就是我們的 Penelope Peach Old Fashioned。

This is our first ready-to-serve, ready-to-pour product for Penelope. It came out in the quarter. And this is going to retail more in the $20 to $30 range. So again, it's going to be even more approachable from a consumer standpoint, and also a great entry point and on-ramp into the category, and into the Penelope family for consumers.

這是我們為佩內洛普 (Penelope) 提供的第一款即食、即倒產品。它在本季問世。零售價將在 20 至 30 美元之間。因此，從消費者的角度來看，它將更加容易接受，同時也是消費者進入該類別和 Penelope 家族的絕佳切入點和入口。

Thanks for the question.

謝謝你的提問。

Thanks, Mitch.

謝謝，米奇。

(Operator Instructions)

（操作員指示）

Ben Klieve, Lake Street Capital Markets.

Ben Klieve，Lake Street Capital Markets。

All right, thanks for taking my questions. How about just a quick one regarding the ongoing CEO search. And so curious, one, if you could just provide any kind of general updates. But specifically, I'm also wondering the degree to which all of the kind of strategic initiatives that you have embarked on of late are --if any of these strategic initiatives you considered are being held back, given the ongoing CEO search. Apologies for the poorly worded question there.

好的，感謝您回答我的問題。關於正在進行的 CEO 搜尋，我們想簡單問一下。我很好奇，第一，您是否可以提供一些一般性的更新。但具體來說，我還想知道，考慮到正在進行的執行長搜尋，您最近採取的所有策略舉措的實施程度——您所考慮的任何策略舉措是否受到阻礙。對於問題措辭不當，我深表歉意。

No worries, Ben. Great question. So CEO search is still underway. These searches take time. And we've even shared from the start that it's not uncommon for CEO public company searches the last four to eight months. And I've also read that the smaller the market cap, the longer it can take. So -- but that doesn't mean that the Board is not very focused on this, and it is a top priority.

別擔心，本。好問題。因此，執行長的搜尋仍在進行中。這些搜尋需要時間。我們甚至從一開始就分享了過去四到八個月內尋找上市公司執行長的情況並不少見。我還讀到過，市值越小，所需的時間就越長。所以——但這並不意味著董事會不太關注這一點，而且這是首要任務。

But what we're also seeing, though, is other changes in leadership at the Board level and reevaluating the individuals on the Board at the Director level, and positioning that Board to make important decisions, and to guide us in the future.

但是，我們也看到董事會領導層的其他變化，重新評估董事會中董事級別的個人，並讓董事會做出重要決策，並指導我們的未來。

So just because the CEO search is still ongoing, it doesn't mean that we're not making great strides from a leadership perspective as a company. Yeah. And as it relates to strategic initiatives, Ben, hopefully, you're picking up the fact that we're not just waiting around.

因此，儘管執行長的搜尋仍在進行中，但這並不意味著我們作為一家公司在領導力方面沒有取得長足進步。是的。至於與策略性舉措相關的內容，本，希望你能意識到我們並不是在等待。

We don't have that luxury right now. And so the team is taking action. I could not be more proud of the team throughout the organization. This has been an absolute pleasure of mine to be able to work even more closely and cross-functionally with them over the last few months. And so yeah, we are taking action. We are seeing things through the same lens and aligning. And because we do -- we don't have a choice, Ben. And the time is now, and I'm very, very proud with the decisive actions the team is taking.

我們現在還不具備這樣的奢侈。因此團隊正在採取行動。我為整個組織的團隊感到無比自豪。在過去的幾個月裡，我非常榮幸能夠與他們進行更緊密和跨職能的合作。是的，我們正在採取行動。我們透過相同的視角來看待事物並保持一致。正因為我們如此——我們別無選擇，本。現在是時候了，我對團隊採取的果斷行動感到非常自豪。

Very good, I appreciate that. Thanks for taking my question. I'll get back to you.

非常好，我很感激。感謝您回答我的問題。我會回覆你。

Thank you, Ben.

謝謝你，本。

There are no more questions in the queue. This concludes our question-and-answer session. I would like to turn the conference back over to Brandon Gall for any closing remarks.

隊列中沒有其他問題。我們的問答環節到此結束。我想將會議交還給 Brandon Gall 並請他作最後發言。

Thank you for your interest in our company and for joining us today for our first quarter earnings call. We look forward to meeting with many of you over the next few weeks.

感謝您對我們公司的關注並參加我們今天的第一季財報電話會議。我們期待在接下來的幾週內與你們中的許多人會面。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。