Latest news with #Lifeway
Business Insider
2 days ago
- Business
- Business Insider
Lifeway Foods expands distribution for several product lines
Lifeway Foods (LWAY) announced expanded distribution for several of its top-selling product lines at major retailers nationwide. The company also announced it has surpassed $37.6M in net sales for the first two months of the second quarter, from April 1, 2025 through May 31, 2025, representing a 10.7% increase from the comparable period in the prior year. Year-to-date net sales for the Company as of May 31, 2025 have reached $83.7M. Given the strong Company performance, Lifeway now expects that net sales for the second quarter ended June 30, 2025, will be in the range of $52M to $56M. 'This expansion reflects the growing demand for functional foods that support gut health and overall wellness,' said Julie Smolyansky, CEO of Lifeway Foods. 'Viral social posts on TikTok and Instagram about kefir related to anti-bloating hacks and skin health are creating robust demand for Lifeway's key product line. Additionally, we're seeing a 63% unit increase in measured channels year-to-date for Lifeway Farmer Cheese, signaling incredible potential at mass grocers for this cult favorite. We're excited to bring our probiotic-rich Lifeway Kefir and Lifeway Farmer cheese to even more families across the country, through trusted retail partners who are working with us to provide a great selection of America's favorite kefir and farmer cheese for their customers. ' Confident Investing Starts Here:
Yahoo
2 days ago
- Business
- Yahoo
Lifeway Foods Expands Retail Footprint with Thousands of New Lifeway Kefir and Farmer Cheese Placements Across Major U.S. Retailers in 2025
Company has surpassed $37.6 million in net sales for the first two months of the second quarter, from April 1, 2025 through May 31, 2025, representing a 10.7% increase from the prior year Year-to-date net sales for the Company have reached $83.7 million as of May 31, 2025 Company provides net sales guidance for the second quarter of 2025 Consumer interest in probiotic, protein-packed nutrition brings additional focus to cultured dairy drinkables and soft cultured cheese categories MORTON GROVE, Ill., June 04, 2025 /PRNewswire/ -- Lifeway Foods, Inc. (Nasdaq: LWAY) ("Lifeway" or "the Company"), a leading U.S. supplier of kefir and fermented dairy products, today announced expanded distribution for several of its top-selling product lines at major retailers nationwide. The latest additions mark a significant step in the Company's mission to make probiotic-rich, gut-healthy foods more accessible to consumers across the country. The Company also announced it has surpassed $37.6 million in net sales for the first two months of the second quarter, from April 1, 2025 through May 31, 2025, representing a 10.7% increase from the comparable period in the prior year. Year-to-date net sales for the Company as of May 31, 2025 have reached $83.7 million. Given the strong Company performance, Lifeway now expects that net sales for the second quarter ended June 30, 2025, will be in the range of $52 million to $56 million. Key upcoming retail expansions include: Amazon Fresh: Lifeway introduces new 8oz Lifeway Organic, Lactose Free Flavor Fusions (Coconut Pineapple, Passionfruit Lychee, Blueberry Lavender) and Lifeway Organic Kefir Shots (Strawberry, Mixed Berry) in 61 Amazon Fresh physical stores, plus availability through Amazon Fresh e-commerce distribution. BJ's Wholesale Club: Two new 8oz kefir SKUs will be available in 268 warehouse locations, offering convenient wellness drinks for families. CVS: Three 32oz Lifeway Kefir flavors are expanding across CVS stores, giving shoppers easy access to probiotic-rich options. HEB: Launching in June, Lifeway's Farmer Cheese will be available in HEB stores across Texas, delivering a high protein, cultured dairy option. Hy-Vee: Four Whole Milk Kefir items and Farmer Cheese are now available in 180 Hy-Vee locations, enhancing Lifeway's Midwest reach. King Soopers, Fred Meyer, Ralph's, QFC (Kroger Divisions): Lifeway's Farmer Cheese is now available in these key regional banners, expanding reach across the West and Pacific Northwest. Lowes Foods: Shoppers can now find Lifeway Farmer Cheese in Lowes Foods stores throughout the Carolinas. Publix: Two new 8oz Lifeway Kefir items are launching in over 1,400 Publix stores, bringing new convenience options to the Southeast. Target: Lifeway will expand the distribution of the three current 32oz items across over 1,100 new shelf slots, significantly expanding visibility and availability. Whole Foods Market: Beginning in July, Lifeway's organic 8oz kefir items will launch in Whole Foods locations nationwide. Winn-Dixie: Four 32oz Lifeway Kefir items are launching in 170 stores, building on Lifeway's growth in the Southeastern U.S. "This expansion reflects the growing demand for functional foods that support gut health and overall wellness," said Julie Smolyansky, CEO of Lifeway Foods. "Viral social posts on TikTok and Instagram about kefir related to anti-bloating hacks and skin health are creating robust demand for Lifeway's key product line. Additionally, we're seeing a 63% unit increase in measured channels year-to-date for Lifeway Farmer Cheese, signaling incredible potential at mass grocers for this cult favorite. We're excited to bring our probiotic-rich Lifeway Kefir and Lifeway Farmer cheese to even more families across the country, through trusted retail partners who are working with us to provide a great selection of America's favorite kefir and farmer cheese for their customers. " Lifeway's continued distribution growth comes amid a rising consumer interest in fermented foods and functional nutrition. All Lifeway products are made with live and active cultures and are crafted to support immunity, digestion and long-term health. About Lifeway Foods, Foods, Inc., which has been recognized as one of Forbes' Best Small Companies, is America's leading supplier of the probiotic, fermented beverage known as kefir. In addition to its line of drinkable kefir, the company also produces a variety of cheeses and a ProBugs line for kids. Lifeway's tart and tangy fermented dairy products are now sold across the United States, Mexico, Ireland, South Africa, United Arab Emirates, and France. Learn how Lifeway is good for more than just you at Forward-Looking StatementsThis press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, the drivers of demand for Lifeway's products, consumer trends, the anticipated effects of scheduled upgrades at the Waukesha plant, expected operating efficiencies and expectations regarding future operating and financial performance. These statements use words, and variations of words, such as "will," "continue," "future," "increase," "believe," "outlook," "expect," and "predict." You are cautioned not to rely on these forward-looking statements. These forward-looking statements are made as of the date of this press release, are based on current expectations of future events and thus are inherently subject to a number of risks and uncertainties, many of which involve factors or circumstances beyond Lifeway's control. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from Lifeway's expectations and projections. These risks, uncertainties, and other factors include: price competition; the decisions of customers or consumers; the actions of competitors; changes in the pricing of commodities; the effects of government regulation; possible delays in the introduction of new products; customer acceptance of products and services; and uncertainty regarding proposals or other actions taken by shareholders related to the unsolicited proposal made by Danone North America PBC ("Danone") to acquire all of the shares of Lifeway stock that Danone does not already own. A further list and description of these risks, uncertainties, and other factors can be found in Lifeway's Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Copies of these filings are available online at or on request from Lifeway. Lifeway expressly disclaims any obligation to update any forward-looking statements (including, without limitation, to reflect changed assumptions, the occurrence of anticipated or unanticipated events or new information), except as required by law. Perceptual AdvisorsDan TarmanEmail: dtarman@ Derek Miller Vice President of Communications, Lifeway FoodsEmail: derekm@ General inquiries:Lifeway Foods, 847-967-1010Email: info@ View original content to download multimedia: SOURCE Lifeway Foods, Inc. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
Lifeway Foods Inc (LWAY) Q1 2025 Earnings Call Highlights: Strong Sales Growth Amid ...
Release Date: May 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Lifeway Foods Inc (NASDAQ:LWAY) reported net sales of $46.1 million for Q1 2025, marking a 3.3% increase compared to the same period in 2024. The company achieved greater than 10% volume rate growth in the quarter, demonstrating strong demand for its branded products. Lifeway Foods Inc (NASDAQ:LWAY) recorded its 22nd consecutive quarter of net sales growth, highlighting consistent performance. The company reported a net income of $3.5 million for Q1 2025, reflecting a significant increase from $2.4 million in Q1 2024. Lifeway Foods Inc (NASDAQ:LWAY) expanded its distribution network, including new commitments from major retailers like CVS, Target, and Walmart. The company faced inflationary pressures, particularly in milk prices, impacting its gross profit margin. Lifeway Foods Inc (NASDAQ:LWAY) incurred higher promotional and slotting fees related to distribution expansion. The strategic elimination of a retail relationship in late 2024 affected net sales, although it was aimed at enhancing margins. Despite strong sales growth, the company continues to face challenges in maintaining cost-effective advertising spend. The international business remains a small percentage of sales, with initial shipments in Dubai and the UAE still in early stages. Warning! GuruFocus has detected 3 Warning Signs with GAUZ. Q: Can you elaborate on the strategic decision to eliminate a retail relationship and adjust a distributor relationship? A: Julie Smolyansky, CEO, explained that the company strategically eliminated a retail relationship to prioritize Lifeway branded offerings over private labels, enhancing margins. Additionally, they adjusted a distributor relationship to reduce freight costs, which is accretive to profits and margins. Q: What factors contributed to the net sales growth in the first quarter of 2025? A: Julie Smolyansky, CEO, stated that net sales growth was driven by higher volumes of Lifeway branded drinkable Kefir and Farmer's Cheese. Despite eliminating a retail relationship, the company achieved over 10% volume growth, showcasing the strength of their branded products. Q: How is Lifeway Foods addressing inflationary pressures, particularly in raw materials like milk? A: Julie Smolyansky, CEO, noted that while they faced inflationary pricing in milk, they are focused on margin expansion through increased shipment volumes of Lifeway branded products, which should lead to further operating efficiencies. Q: What are the company's plans for marketing and advertising in 2025? A: Julie Smolyansky, CEO, mentioned that Lifeway Foods is investing in marketing to boost growth, focusing on sales and marketing initiatives that deliver exceptional returns. They are also expanding distribution and enhancing brand awareness through various channels. Q: Can you provide an update on Lifeway's international business, particularly in Dubai and the UAE? A: Julie Smolyansky, CEO, reported promising performance from initial shipments in Dubai and the UAE, where the target consumer density is higher. However, she noted that this remains a small percentage of their overall sales. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
Q1 2025 Lifeway Foods Inc Earnings Call
Julie Smolyansky; Chairman of the Board, President, Chief Executive Officer, Company Secretary; Lifeway Foods Inc Good morning. Welcome to Lifeway Foods first quarter 2025 conference call. On the call with me today is Julie Smolyansky, President and Chief Executive Officer. By now, everyone should have access to the press release that went out this morning. If you have not received the release, it is available on the Investor Relations portion of Lifeway's website at A recording of this call will be available on the company's website. Before we begin, we'd like to remind everyone that the prepared remarks contain forward-looking statements. The words believe, expect, anticipate, plan, will, and other similar expressions generally identify forward-looking statements. These statements do not guarantee future performance and therefore undue reliance should not be placed on them. Actual results could differ materially from those projected in any forward-looking statements. Lifeway assumes no obligation to update any forward-looking projections that may be made during today's call, except as required by law. All of the forward-looking statements contained here and speak only as of the date of this call. And with that, I would like to turn the call over to Lifeway's President and Chief Executive Officer, Julie Smolyansky. Julie Smolyansky Thank you, John, and good morning to everyone joining us. As always, we greatly appreciate your interest in Lifeway Foods. After a monumental year in 2024, I am pleased to report that our strong business momentum has flowed into this year with yet another order of strong volume-led growth to kick off 2025. In the first quarter, we continued to execute on our growth strategy, invested behind our key Lifeway brands, and furthered our position as the keeper category leader. Before diving into the results, I want to applaud the efforts and execution of our entire Lifeway team. Our consistent growth and outstanding level of service that our customers and partners rely on would not be possible without you. With that, I will now review our results for the first quarter of 2025. Net sales were $46.1 million for the period ended March 31, 2025, an increase of $1.5 million or 3.3% compared to the first quarter in 2024. The net sales growth was primarily driven by higher volumes of our Lifeway branded drinkable Kefir and Farmer's Cheese. After a year of significant volume growth in 2024, we were excited to sustain this trend in the first quarter, despite lapping an incredibly strong first quarter in 2024, a period where we achieved nearly 18% year-over -year growth. It is important to call out a few nuances on the top line that make this performance particularly impressive. First, in the second half of last year, we strategically eliminated a retail relationship that contributed meaningfully to net sales on a quarterly basis in a broader effort to prioritize our Lifeway branded offerings over private label and to enhance our margins. Second, in late 2024, we adjusted the relationship with one of our partner distributors. We previously delivered product directly to them, and they are now directly picking products up from our facilities. Under the new agreement, we now bill them less, but we have less freight costs. Overall, this is accretive to profits and margins. On a like-for-like basis, excluding those nuances, we achieved greater than 10% volume rate growth in the quarter, a testament to the strength of our Lifeway branded products and the loyalty of our growing customer base. This also marked our 22nd consecutive quarter of net sales growth, an outstanding track record that dates back more than five years now. Over that time, consumers have collectively embraced a health and wellness-oriented movement that we expect will continue to grow. Within that movement, consumer interest and demand for bioavailable, protein-rich foods with probiotics like our Lifeway Kefir and Lifeway Farmers' Cheese has soared as well. The focus on protein, gut health, and select nutrients is especially true for consumers currently using GLP-1 medications and those who are looking for foods that naturally stimulate GLP-1 hormone production. As a result, our target addressable market has rapidly grown, and we continue to successfully capitalize on that trend. Our consistent growth and the enduring strength of our brand speaks to the effectiveness of our strategic sales and marketing investments that resonate with consumers and driving exposure and demand for our core Lifeway products. Given our sustained high level of growth, we believe the factors I mentioned before will drive continued volume growth in our core Lifeway products. Moving on, we reported a gross profit margin of 24% for the period ended March 31, 2025. Our margins continue to benefit from heightened volumes of our Lifeway branded products while we incurred headwinds from continued inflationary pricing in milk, our largest raw material, as well as promotions and slotting fees related to distribution expansion and new placements for our popular Farmers' Cheese and other branded Lifeway Kefir offerings, including our new lactose-free Kefir flavor fusions. We remain focused on margin expansion and as we continue to deliver increased shipment volumes of our Lifeway branded products, we should realize further operating efficiencies across the business. Now to our expenses. Selling in general administrative expenses were $9.3 million for the period ended March 31, 2025. Our top line performance is a reflection of our effective investments in sales and marketing initiatives which continue to deliver exceptional returns and drive growth in our key Lifeway products. As we announced last quarter, we are investing in 2025 to further boost our growth, and this includes accelerated investments behind our key product lines to grow our market-leading position and enhance our brand awareness. Our marketing expenses in the quarter were in line with our plans for the year, and we will continue to invest behind our brand to match the rising consumer demand for healthy foods. Our net income during the period ended March 31, 2025 with $3.5 million, reflecting EPS of $0.23 per basic and diluted common share compared to net income of $2.4 million or $0.17 per basic and $0.16 per diluted common share during the first quarter of 2024. A driver of the growth here was the net gain resulting from Lifeway's early investment into Simple Mills, which was officially acquired by Flower Foods at the end of February. We were early believers in the simple milk growth story, and we were proven correct. I'm happy for their team, but even more so, I'm thrilled for our shareholders who have benefited from our early investments into the branch. Capital funding decreased approximately $0.3 million to $2.2 million during the period ended March 31, 2025 compared to the first quarter of 2024. Our capital spend is very efficient, and we generate a great return when installing additional tanks as we leverage existing infrastructure to scale the business. The decreases spend compared to last year is in line with our expectations. We have been investing for some time now in capacity to meet increasing demand and facilities upgrades to improve our efficiency and have now developed a state-of-the-art facility in Waukesha, Wisconsin. We are continuing to invest this year and expect that at completion, we will have almost doubled our production capacity and more than tripled our bottling speed. As we stand today, we have the operations in place and abundant capacity to support further sales growth. This strong quarter reinforced our conviction in the strategy and path to continued profitable growth and shareholder value creation. With our business stronger than ever, I am pleased to reiterate our expectation to achieve between $45 million to $50 million in adjusted EBITDA in fiscal year 2027. Our expanding target market and customer base continues to prove resilient, as evidenced by our growth so far this year. Notably, at the end of April, we delivered a Lifeway record high week of sales, surpassing $5 million in gross sales for the first time ever, representing a 35% increase from the same week in the prior year and propelled by demand for our Lifeway Kefir and Lifeway Farmers' Cheese. This is a milestone we are immensely proud of, and it illustrates the continued consumer commitment to our branded products. Lifeway continues to perform strongly, and that speaks to the staying power of the consumer health and wellness trends that I mentioned before. Despite being cost conscious, the consumer is proving they will not sacrifice their well-being and are focused on nutritious, better-for-you foods that are affordable. Our premium branded Lifeway products are extremely healthy and come at excellent value, which is why our loyal customers keep coming back to the shelves. Our gut healthy premium Lifeway products are delicious and are loaded with high quality bioavailable nutrients including protein, calcium, vitamin D, and live and active probiotic cultures. The probiotics in Kefir help support a healthy microbiome, and between 70% to 80% of immune cells come from the gut. Probiotic products such as Kefir are the focus of intense research related to the microbiome's role in stress, depression and anxiety. We now know that almost 90% of the body's serotonin comes from gut cells and the gut-brain access, which links the emotional and cognitive centers of the brain with our intestinal functions. In the past couple of quarters, we have also called out numerous recent studies correlating potential long-term health benefits with the consumption of probiotic fermented dairy products like our own, and we are always keeping an eye out for new research on the microbiome and its positive impact on human beings. We are obsessed with supporting our customers' pursuit of healthy lives and our Lifeway offerings packed with probiotics and bioavailable nutrients that nourish the body and the mind. If you want to be healthy and happy, your gut should always be a top priority. We expect modern health and wellness trends to be a tailwind to our entire premium product portfolio for years to come. While health and wellness trends among consumers are natural benefit to our industry, as the dominant leader in the Kefir space, we are consistently evaluating consumer tastes and trends within our target market to stay ahead of the curve and diversify offerings for our growing consumer base. These insights have led to consistent innovations and new hit on trend products within our portfolio that keep our customers excited and on their toes. We are a brand on the move and one that meets the moment and are always looking to extend the strength of our Lifeway brand across the categories and channels. Focusing specifically on the core driver of our business, our flagship Lifeway drinkable Kefir, we built the US Kefir market on the back of this product and continue to anchor the market today by dedicating the majority of our time and investment behind our key products. Lifeway drinkable Kefir has propelled the massive growth of our business in recent years, and our consumer insights and innovation have enabled us to keep this product fresh and new for our loyal customers as we maintain our dominant market position and impressive growth. Some of the recent innovations within the category include our innovative lactose-free organic whole milk kefir flavor fusions, our Probiotic Smoothies with Collagen, made with Kefir cultures and offered in four delicious flavors, and most recently, our new conventional whole milk Kefir flavors. To date, we are encouraged by consumer acceptance of these new healthy offerings. Each product and branded set of flavors were inspired by research and customer insights and are extremely healthy, packed with probiotics and bioavailable nutrients. We believe the Kefir market will continue growing, and as the leader of the space, we will continue to invest behind and position our offerings in line with evolving consumer interests to further capitalize on the tremendous market opportunities in front of us. As we have touched on a number of times over the past year and a half, our secondary product focus has been on our Lifeway Farmers' Cheese. Our consumer insights allowed us to identify the growing customer demand for soft cheese products at the right time, and our strategic investments behind this category have started to pay off exceptionally. In the first quarter, our Cheese category, driven by Lifeway's Farmer Cheese was up significantly compared to the first quarter of 2024. Our Farmer's Cheese is protein rich, packed full of probiotics and bioavailable nutrients, and it is a healthy, delicious alternative to popular blended cottage cheese recipes. Our recent expansion of Farmer's Cheese into 1,400 Albertson stores across the United States, plus an additional almost 1,000 new store commitments through spring, summer, and fall, demonstrate how excited we are about the product and will continue to appropriately invest behind it to ensure its success. I'll now touch on some marketing and advertising updates. First, I'm excited to announce that I'll be attending the Wall Street Journal Global Food Forum on June 16 and 17 in Chicago. I'm honored to have been invited to speak at the forum in our home state alongside numerous influential business leaders in the food and agricultural space, and I look forward to telling the Lifeway story and discussing our great expectations for Lifeway's future at this esteemed and high visibility event. Just this weekend, we held a high-profile Mother's Day Pancake and Kefir celebration with some of the top influencers in collaboration with artist, model and entrepreneur Chrissy Teigen, and artist John Legend and their cravings brand. I also recently joined iconic Katie Couric on stage at South by Southwest in Austin to discuss the newest groundbreaking microbiome and colon cancer research out of Boston that followed 130,000 people over 30 years and found that those who regularly consumed fermented dairy foods, including products containing certain cultures like those found in Lifeway Kefir, had a 20% to 30% reduction in certain colon cancers, as well as the alarming trends around the increase in colon cancer among young adults. As pioneers in the probiotic and beverage space, it is our duty to lead conversations that raise awareness around key issues related to digestive health. Lifeway we will continue to communicate relevant research and data to the market and our customers. We have earned the trust of our customers over almost four decades and see it as a privilege and a responsibility to maintain this important dialogue. Focusing on our overall marketing actions, our efforts have been laser focused on moving units and building awareness of our core Lifeway branded products. In the first quarter, we completed new year, new got promotions across retailers to capture additional health-focused customers as they began their New Year's resolutions in January. Like last year, in the first quarter, we also re-launched a large in-store promotion across many retailers to create a temporary Lifeway-dedicated refrigerated spaces, showcasing our branded products at high traffic and caps. By placing Lifeway's products at interruptive moments within the store, we have been effective at driving trial and increasing brand exposure to shoppers who don't typically browse our section. We've had success with this style of campaign and we will continue to focus our retail efforts on the greatest ROI opportunities for our marketing dollars. Outside of the store, we continue to invest behind our e-commerce as a cornerstone of our current sales strategy. We are investing more in targeted advertising on our retail partner sites and platforms such as Instacart to drive trial. Our comprehensive digital approach combines targeted-search display, and social advertising supplemented by influencer campaigns that generate both brand and category awareness. We've allocated significant resources to those digital channels and continue to partner with celebrities, chefs, and nutrition experts with notable followings to advertise to a growing network of customer. These relationships educate potential customers on our Better-For-You offerings and demonstrate the versatility of our products in various recipes. Our nimble e-com strategy has allowed us to guide customers through their purchasing journey while maintaining cost effective advertising spend. Our continued top line performance gives us conviction that our sales and marketing strategies have been effective. I will now touch on some distribution updates. We have new commitments for expanded distribution through key channels including new SKUs at CVS, Target, Publix, Amazon Fresh, and Walmart from now through fall, and Lifeway products can now be found at 40 airports through distribution at WHSmith, including new vending machine distribution at O'Hare just last week. As we touched on before, our distribution expansion of Lifeway Farmers' Cheese into 1,400 incremental Albertson stores has greatly boosted visibility for this product line. Additionally, almost 1,000 new retail stores have committed to Farmer's Cheese, including at King's Supers, Fred Meyers, Ralph's, QFC's, Hannaford, and Lowe's. We've increased placements for our new flavor fusions at Amazon and probiotics smoothies, and collagen during this quarter as well. Our new products are gaining customer following, and we are pleased with the results so far. As an update to our smaller international business, we continue to see promising performance from our initial shipments in Dubai and the UAE. Our target consumer has a higher density in that region, and we will continue to monitor the performance and initial trends, but I would remind you, this is a small percentage of our sales. Through both our marketing and distribution efforts, we are maintaining active dialogue and strong relationships with our key retail partners. Our strategy on both fronts is to elevate our brand exposure and drive trial and velocities of our core Lifeway products with the focus on our drinkable Kefir and Farmer's Cheese. To conclude, I'd like to express my gratitude to everyone joining us today. We had yet another incredible quarter here at Lifeway and are set up for another great year in 2025 as we kick off our 40th anniversary. Lifeway is in a position of strength as consumer interests in healthy foods like our own continues to rise, and I'm confident that we have the best team assembled to maintain our positive trajectory. We are committed to investing behind our key products to continue growing and pursuing our mission to provide best-in-class bio-available, probiotic and nutritious food to our growing base of health conscious customers. I'm truly excited about the opportunities that lie ahead as we continue this journey together. We look forward to providing another progress update on our second quarter call in August. Have an amazing day and a wonderful summer. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
Lifeway Foods EPS Increases 44% Year-Over-Year as Kefir Company Announces Results for the First Quarter Ended March 31, 2025
Net sales of $46.1 million; up 3.3% year-over-year Consumer demand for probiotic Lifeway products drives 22nd consecutive quarter of year-over-year sales growth MORTON GROVE, Ill., May 13, 2025 /PRNewswire/ -- Lifeway Foods, Inc. (Nasdaq: LWAY) ("Lifeway" or "the Company"), a leading U.S. supplier of kefir and fermented probiotic products to support the microbiome, reported financial results for the first quarter ended March 31, 2025. "We're thrilled to begin 2025 with continued topline momentum, delivering our 22nd consecutive quarter of year-over-year net sales growth," commented Julie Smolyansky, President and Chief Executive Officer of Lifeway Foods. "Our Q1 performance builds on the foundation of our record-breaking 2024, as we continued to see consistent volume growth in our flagship drinkable Lifeway Kefir. Our topline growth follows a very strong first quarter in 2024 in which we delivered 18% growth. There are several important factors that highlight the underlying strength of the business that led to year-over-year growth. First, in the second half of last year we strategically eliminated a retail relationship to prioritize our branded offerings over private label and enhance our margins. Additionally, a sizeable distributor adjusted orders from delivery to direct pick-ups in late 2024, this leads to lower billed sales and correspondingly lower freight costs. Excluding the impact from both of these strategic adjustments, on a like-for-like basis, we delivered nearly 11% volume-led growth in the quarter, underscoring the power of our Lifeway branded products and the loyalty of our growing customer base." added Ms. Smolyansky. Ms. Smolyansky continued, "The accelerating consumer focus on health and wellness continues to be a tailwind for our business, with demand rising for protein-rich, probiotic and bioavailable foods, including our Lifeway Kefir and Farmer Cheese. Our strategic sales and marketing investments are clearly paying dividends, driving increased brand recognition, strong product velocities, and introducing the Lifeway brand to more and more customers who value premium, nutritious offerings. We see no impact of tariffs on our business at this time or in the foreseeable future. We expect consumer visits to grocery and club stores to increase amid tightening consumer spending, as shoppers seek better-for-you and nutritionally valuable foods and beverages, such as the highly bioavailable protein options and gut-healthy products that Lifeway offers. This focus on protein, gut health and select nutrients is especially true for consumers currently using GLP-1 medications and those who are looking for foods that naturally stimulate GLP-1 hormone production. As a result, our target addressable market has rapidly grown, and we are successfully capitalizing on that trend alongside our retailer partners through expanded distribution of our key products. This year we have received commitments at key retailers for more than 2,000 total incremental points of distribution across our product lines, including Lifeway Farmer Cheese, our new Flavor Fusions and our Probiotic Smoothies with Collagen. Lifeway products can also now be found in 40 airports across the country. Notably, in the last full week of April, we surpassed $5 million in gross sales, a record week for our business, propelled by demand for Lifeway Kefir and Farmer Cheese. The second quarter is off to a good start, and we plan to continue our investments behind our core branded products in 2025 to further capitalize on the tremendous market opportunity in front of us and extend upon the vast momentum we have achieved." First Quarter 2025 Results Net sales were $46.1 million for the first quarter ended March 31, 2025, an increase of $1.5 million or 3.3% from the same period in 2024. The net sales increase was primarily driven by higher volumes of Lifeway's branded drinkable kefir. Gross profit as a percentage of net sales was 24.0% for the first quarter ended March 31, 2025. Selling, general and administrative expenses as a percentage of net sales was 20.2% for the first quarter ended March 31, 2025. The Company reported net income of $3.5 million or $0.23 per basic and diluted common share for the first quarter ended March 31, 2025. We remain confident that the Company is on track to deliver Adjusted EBITDA1 of $45 - $50mm in FY2027. 1. Adjusted EBITDA is a non-GAAP financial measure. Adjusted EBITDA is defined as Operating Income, as reported, plus Depreciation and Amortization, plus Stock-Based Compensation. The Company does not provide guidance for GAAP Operating Income, nor a reconciliation of any forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures on a forward-looking basis, because it is unable to predict certain items contained in the GAAP measures without unreasonable efforts. These forward-looking non-GAAP financial measures do not include certain items, which may be significant, including, without limitation, non-recurring or non-operational expenses such as stock-based compensation, gain/loss on sale of equipment, deferred revenue and gain/loss on investments prior to payment of bonuses to employees. Conference Call and WebcastA webcast with Lifeway's President and Chief Executive Officer discussing these results with additional comments and details is available through the "Investor Relations" section of the Company's website at About Lifeway Foods, Foods, Inc., which has been recognized as one of Forbes' Best Small Companies, is America's leading supplier of the probiotic, fermented beverage known as kefir. In addition to its line of drinkable kefir, the company also produces a variety of cheeses and a ProBugs line for kids. Lifeway's tart and tangy fermented dairy products are now sold across the United States, Mexico, Ireland, South Africa, United Arab Emirates, and France. Learn how Lifeway is good for more than just you at Forward-Looking Statements This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, the drivers of demand for Lifeway's products, consumer trends, the anticipated effects of scheduled upgrades at the Waukesha plant, expected operating efficiencies and expectations regarding future operating and financial performance. These statements use words, and variations of words, such as "will," "continue," "future," "increase," "believe," "outlook," "expect," and "predict." You are cautioned not to rely on these forward-looking statements. These forward-looking statements are made as of the date of this press release, are based on current expectations of future events and thus are inherently subject to a number of risks and uncertainties, many of which involve factors or circumstances beyond Lifeway's control. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from Lifeway's expectations and projections. These risks, uncertainties, and other factors include: price competition; the decisions of customers or consumers; the actions of competitors; changes in the pricing of commodities; the effects of government regulation; possible delays in the introduction of new products; customer acceptance of products and services; and uncertainty regarding proposals or other actions taken by shareholders related to the unsolicited proposal made by Danone North America PBC ("Danone") to acquire all of the shares of Lifeway stock that Danone does not already own. A further list and description of these risks, uncertainties, and other factors can be found in Lifeway's Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Copies of these filings are available online at or on request from Lifeway. Lifeway expressly disclaims any obligation to update any forward-looking statements (including, without limitation, to reflect changed assumptions, the occurrence of anticipated or unanticipated events or new information), except as required by law. Non-GAAP Financial Measures This press release refers to Adjusted EBITDA, which is a financial measure that has not been prepared in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), and may exclude items that are significant to understanding and assessing financial results. This non-GAAP measure is provided to enhance investors' overall understanding of the Company's financial performance. Non-GAAP financial measures should be considered as supplements to GAAP measures reported, should not be considered replacements for, or superior to, GAAP measures reported and may not be comparable to similarly named measures used by other companies. The Company's calculation of non-GAAP financial measures may differ from methods used by other companies. Perceptual AdvisorsDan TarmanEmail: dtarman@ Derek Miller Vice President of Communications, Lifeway FoodsEmail: derekm@ General inquiries:Lifeway Foods, 847-967-1010Email: info@ LIFEWAY FOODS, INC. AND SUBSIDIARIES Consolidated Balance Sheets March 31, 2025 and December 31, 2024 (In thousands) March 31, 2025 December 31,(Unaudited) 2024Current assets Cash and cash equivalents$ 19,446 $ 16,728Accounts receivable, net of allowance for credit losses and discounts & allowances of $2,030 and $1,590 at March 31, 2025 and December 31, 2024, respectively 16,68415,424Inventories, net 9,2418,678Prepaid expenses and other current assets 2,0072,144Refundable income taxes –631Total current assets 47,37843,605 Property, plant and equipment, net 28,11226,862Operating lease right-of-use asset 109118Goodwill 11,70411,704Intangible assets, net 6,2236,358Other assets 1411,900Total assets$ 93,667 $ 90,547 Current liabilities Accounts payable$ 11,635 $ 10,401Accrued expenses 3,9395,103Accrued income taxes 795–Total current liabilities 16,36915,504Operating lease liabilities 6870Deferred income taxes, net 3,0623,062Total liabilities 19,49918,636 Stockholders' equity Preferred stock, no par value; 2,500 shares authorized; none issued ––Common stock, no par value; 40,000 shares authorized; 17,274 shares issued; 15,203 and 15,100 outstanding at March 31, 2025 and December 31, 2024, respectively 6,5096,509Treasury stock, at cost (13,383)(14,052)Paid-in capital 2,6804,632Retained earnings 78,36274,822Total stockholders' equity 74,16871,911 Total liabilities and stockholders' equity$ 93,667 $ 90,547 LIFEWAY FOODS, INC. AND SUBSIDIARIES Consolidated Statements of Operations For the three months ended March 31, 2025 and 2024 (Unaudited) (In thousands, except per share data) 2025 2024 Net Sales$ 46,091 $ 44,634 Cost of goods sold 34,25432,438Depreciation expense 802661Total cost of goods sold 35,05633,099 Gross profit 11,03511,535 Selling expense 4,6983,700General and administrative expense 4,6284,136Amortization expense 135135Total operating expenses 9,4617,971 Income from operations 1,5743,564 Other income (expense): Interest expense (14)(51)Gain on sales of investments 3,352–Other income (expense), net 54(5)Total other income (expense) 3,392(56) Income before provision for income taxes 4,9663,508 Provision for income taxes 1,4261,082 Net income$ 3,540 $ 2,426 Net earnings per common share: Basic$ 0.23 $ 0.17Diluted$ 0.23 $ 0.16 Weighted average common shares outstanding: Basic 15,13414,691Diluted 15,33315,222 LIFEWAY FOODS, INC. AND SUBSIDIARIES Unaudited Consolidated Statements of Cash Flows (Unaudited) (In thousands) Three months ended March 31,2025 2024Cash flows from operating activities: Net income$ 3,540 $ 2,426Adjustments to reconcile net income to operating cash flow: Depreciation and amortization 937796Stock-based compensation 326673Non-cash interest expense 32Gain on sale of investments (3,352)–Fair value loss on investment 20–(Increase) decrease in operating assets: Accounts receivable (1,259)(1,189)Inventories (563)974Prepaid expenses and other current assets 13631Refundable income taxes 631(378)Increase (decrease) in operating liabilities: Accounts payable 1,401(6)Accrued expenses (2,765)(1,309)Accrued income taxes 795(474)Net cash (used in) provided by operating activities (150)1,546 Cash flows from investing activities: Purchases of property and equipment (2,219)(2,469)Proceeds from sale of investments 5,152–Net cash provided by (used in) investing activities 2,933(2,469) Cash flows from financing activities: Repayment of note payable –(250)Payment of deferred financing costs (65)–Net cash used in financing activities (65)(250) Net increase (decrease) in cash and cash equivalents 2,718(1,173) Cash and cash equivalents at the beginning of the period 16,72813,198 Cash and cash equivalents at the end of the period$ 19,446 $ 12,025 Supplemental cash flow information: Cash paid for income taxes, net of (refunds)$ – $ 1,934Cash paid for interest$ 11 $ 50 Non-cash investing activities Accrued purchase of property and equipment$ 239 $ 192Right-of-use assets obtained in exchange for lease obligations$ 8 $ – View original content to download multimedia: SOURCE Lifeway Foods, Inc. 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