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Lifeway Foods Inc. (Nasdaq: LWAY) is a leading U.S. manufacturer of probiotic, cultured, functional dairy food products based in Morton Grove, Illinois. Since its founding, Lifeway has been at the forefront of the health food industry, offering a diverse range of products designed to promote a healthy lifestyle. The company's flagship product, drinkable kefir, a cultured dairy beverage rich in probiotics, has been a cornerstone of its success.
Lifeway's portfolio includes a variety of dairy products such as European-style soft cheeses, cream, ProBugs (a probiotic product for children), frozen kefir, and other specialty dairy items. Their products are marketed under the Lifeway and Fresh Made brand names, as well as through private labels for various customers. The company relies on a robust distribution network that includes direct sales force, brokers, and distributors to deliver its products to consumers.
Recently, Lifeway has reported significant financial achievements. For the second quarter ended June 30, 2023, the company registered net sales of $39.2 million, a 17.1% increase year-over-year. This growth was primarily driven by higher volumes of branded drinkable kefir and price adjustments. Gross profit margins also improved significantly to 28.7%, reflecting operational efficiencies and favorable milk pricing.
Lifeway continues to innovate and expand its product line. The company announced plans to increase cheese production with investments in automation and efficiency, aimed at meeting future demand and exploring new distribution opportunities. Lifeway Farmer Cheese, a soft cheese similar to cottage cheese but spreadable like cream cheese, has garnered attention due to its high protein and probiotic content.
In addition to its product innovations, Lifeway is also focusing on marketing initiatives to increase brand exposure. Notable activities include participation in major industry events like Natural Products Expo West and collaborations with influencers and celebrities to promote their products.
The company's commitment to health and wellness extends beyond its products. Lifeway supports various research endeavors, like the recent study on the impact of kefir on children with ADHD, highlighting the potential benefits of probiotics on mental and physical health.
Lifeway's vision for the future remains steadfast: to continue providing high-quality, probiotic-rich products that contribute to the well-being of its consumers. With a strong financial footing and ongoing strategic initiatives, Lifeway Foods is well-positioned for sustained growth and success in the health food industry.
Lifeway Foods (NASDAQ: LWAY) has rejected Danone's revised unsolicited proposal of $27.00 per share, stating it substantially undervalues the company. The Board highlighted Lifeway's strong performance, including 20 consecutive quarters of year-over-year growth and a 788% total shareholder return over five years. From 2019 to 2023, revenue grew 71% to $160 million, with gross profit increasing 92%. The company forecasts Adjusted EBITDA to grow from $22 million in 2023 to $45-50 million by 2027. The Board believes their standalone plan offers superior value compared to Danone's proposal.
Edward and Ludmila Smolyansky, controlling approximately 29.7% of Lifeway Foods (NASDAQ: LWAY) shares, have called for the board to establish an independent special committee to evaluate Danone's $27 per share cash offer. The founding shareholders criticize Lifeway's quick rejection of the proposal and CEO Julie Smolyansky's stated opposition to any sale. They raise concerns about conflicts of interest, as the CEO reportedly refuses to allow a sale unless specific share transfers occur. The founders also request disclosure of Kroll's valuation analysis and question the board's reliance on Jason Burdeen, whose credibility was criticized by a federal judge.
Lifeway Foods (Nasdaq: LWAY) has announced its latest innovation: Probiotic Smoothie + Collagen made with kefir cultures. The new product line features 5 grams of collagen per serving, 12 live and active cultures, and 25-30 billion beneficial CFUs. Available in Matcha Latte, Berry Blast, Tropical Fruit, and Plain flavors, the lactose-free beverage is designed to support skin health, immune system, and microbiome through the gut-skin axis. The product will begin shipping in December and hit select stores nationwide by year-end as part of the brand's New Year New You Campaign for 2025.
Lifeway Foods (NASDAQ: LWAY) has rejected Danone North America's revised unsolicited proposal to acquire all remaining shares for $27.00 per share. The Board determined the offer substantially undervalues the company. Lifeway recently achieved its 20th consecutive quarter of growth, with double-digit year-over-year revenue growth and improved profit margins in Q3 2024. The company has delivered total shareholder returns of 788% and 270% over five and three years respectively, outperforming peers and the S&P 500. Management remains focused on executing its strategic plan to expand kefir market presence and enter adjacent categories.
Lifeway Foods (NASDAQ: LWAY) has received a revised, unsolicited, non-binding proposal from Danone to acquire all outstanding shares it doesn't already own for $27.00 per share in cash. Danone currently owns approximately 23.3% of Lifeway's outstanding common stock. This follows Lifeway's Board's rejection of Danone's initial proposal of $25.00 per share on November 5, 2024, which was deemed to undervalue the company. The Board, with independent advisors, will review the revised proposal. Evercore is serving as financial advisor and Sidley Austin LLP as legal counsel to Lifeway.
Lifeway Foods (LWAY) reported strong Q3 2024 results with net sales of $46.1 million, up 12.7% year-over-year, marking their 20th consecutive quarter of growth. Year-to-date net sales reached $139.9 million, an 18.5% increase from 2023. The company achieved a net income of $3.0 million ($0.20 per basic share) for Q3 and $9.2 million ($0.62 per basic share) year-to-date. Growth was primarily driven by higher volumes of branded drinkable kefir and cheese products. The company secured new retail placements, including strawberry banana kefir in 1,000 stores and Farmer Cheese in 1,400 stores by Q1 2025. Gross profit margin improved to 26.2% year-to-date due to manufacturing efficiencies.
Lifeway Foods (Nasdaq: LWAY), a leading U.S. supplier of kefir and fermented probiotic products, has announced it will release its third quarter 2024 financial results on November 14, 2024, before market hours. The company will provide a pre-recorded conference call and webcast featuring CEO Julie Smolyanksy's discussion of the results, which will be available through the Investor Relations section of Lifeway's website.
Danone SA proposed to acquire Lifeway Foods for approximately $283 million ($25 per share in cash) on September 23, 2024. The Lifeway Foods Board rejected the offer on November 6 and implemented a 'poison pill' shareholder rights plan. Edward and Ludmila Smolyansky, significant shareholders and founding family members, expressed strong support for Danone's offer, citing it represents a substantial premium over recent share prices. They urged the board and CEO Julie Smolyansky to reconsider the offer, warning that delays could result in lost value for shareholders, employees, and consumers.
Lifeway Foods (LWAY) has announced an expanded distribution agreement in the United Arab Emirates market. The company will begin shipping 32oz Lifeway Kefir, 8oz Lactose-Free Lifeway Kefir, ProBugs and farmer cheese to supermarkets and hypermarkets in Dubai and across the Emirates in Q4 2024. The announcement was made during the Gulfood Manufacturing trade show in Dubai. The global kefir market is projected to grow at a CAGR of 6.3%, reaching $4.9 billion USD by 2032.
Lifeway Foods (NASDAQ: LWAY) has rejected Danone North America's unsolicited proposal to acquire all remaining shares at $25.00 per share, stating it undervalues the company. In response, Lifeway's Board adopted a duration shareholder rights plan effective immediately through November 4, 2025. The plan will distribute one preferred share purchase right per common stock to shareholders of record by November 18, 2024. These rights become exercisable if any entity acquires 20% or more ownership without Board approval. The plan aims to protect shareholders' interests while allowing the Board to consider fair acquisition offers.
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