MGP Ingredients, a Kansas-based company involved in the production of value-added, grain-based starches, proteins and food-grade alcohol products for the branded packaged goods industry, has reported 24% rise in the net sales for the second quarter ended 30 June 2012, compared to the net sales during the same period last year.

The company reported net loss of $0.85m or $0.05 per diluted share, compared with a net loss of $10.3m, or $0.61 per diluted share, in the prior year.

Distillery products sales for the second quarter were $71.1m, an increase of 34%, compared to the prior year quarter.

The increase in distillery products sales was primarily due to 37% increase in sales of high quality food grade alcohol, driven by approximately equal gains in pricing and unit volume.

Non-food grade alcohol sales for the second quarter of 2012 were declined by 32%, compared with the prior-year period.

Pre-tax operating income for the distillery products segment during the reported quarter was $3.7m, compared to a pre-tax loss of $3.7m during the same quarter a year ago.

MGP Ingredient president and CEO Tim Newkirk said the company is making continued progress on growing the top-line.

"Performance at our Lawrenceburg, Indiana distillery is coming up to speed now that the facility has been integrated with our SAP platform," Newkirk added.

"We’re also seeing greater interest in a broader range of premium beverages as we spend more time with LDI’s customer base.

"Demand remains strong for premium aged bourbon and whiskeys; therefore, we added to our MGP-owned barrel inventory in the second quarter at an investment of approximately $5 million."