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Lifeway Foods® Announces Strong Fourth Quarter and Record-Breaking Full Year 2024 Results

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Lifeway Foods (LWAY) reported record-breaking financial results for Q4 and full year 2024, with annual net sales reaching $186.8 million, marking a 17% year-over-year increase. The company achieved its 21st consecutive quarter of year-over-year growth, with Q4 net sales of $46.9 million.

Key financial highlights for FY2024 include:

  • Gross profit margin of 26.0%
  • SG&A expenses at 18.3% of net sales
  • Net income of $9.0 million
  • Earnings per share of $0.61 basic and $0.60 diluted

The company's growth was primarily driven by increased volumes of branded drinkable kefir products. Lifeway is expanding its production capabilities with upgrades at its Waukesha facility, which will nearly double production capacity and triple bottling speed. The company maintains its guidance for Adjusted EBITDA of $45-50 million by FY2027.

Lifeway Foods (LWAY) ha riportato risultati finanziari record per il quarto trimestre e per l'intero anno 2024, con vendite nette annuali che hanno raggiunto $186,8 milioni, segnando un incremento del 17% rispetto all'anno precedente. L'azienda ha raggiunto il suo 21° trimestre consecutivo di crescita anno su anno, con vendite nette nel quarto trimestre pari a $46,9 milioni.

I principali punti salienti finanziari per l'anno fiscale 2024 includono:

  • Margine di profitto lordo del 26,0%
  • Spese SG&A al 18,3% delle vendite nette
  • Utile netto di $9,0 milioni
  • Utili per azione di $0,61 base e $0,60 diluito

La crescita dell'azienda è stata principalmente guidata dall'aumento dei volumi di prodotti kefir bevibili a marchio. Lifeway sta espandendo le sue capacità produttive con aggiornamenti presso il suo stabilimento di Waukesha, che raddoppierà quasi la capacità produttiva e triplicherà la velocità di imbottigliamento. L'azienda mantiene le sue previsioni per un EBITDA rettificato di $45-50 milioni entro l'anno fiscale 2027.

Lifeway Foods (LWAY) reportó resultados financieros récord para el cuarto trimestre y el año completo 2024, con ventas netas anuales que alcanzaron $186.8 millones, marcando un aumento del 17% en comparación con el año anterior. La compañía logró su 21° trimestre consecutivo de crecimiento interanual, con ventas netas en el cuarto trimestre de $46.9 millones.

Los aspectos financieros clave para el año fiscal 2024 incluyen:

  • Margen de utilidad bruta del 26.0%
  • Gastos SG&A del 18.3% de las ventas netas
  • Ingreso neto de $9.0 millones
  • Ganancias por acción de $0.61 básico y $0.60 diluido

El crecimiento de la compañía fue impulsado principalmente por el aumento de volúmenes de productos de kefir bebibles de marca. Lifeway está expandiendo sus capacidades de producción con mejoras en su instalación de Waukesha, que casi duplicará la capacidad de producción y triplicará la velocidad de embotellado. La compañía mantiene su guía para un EBITDA ajustado de $45-50 millones para el año fiscal 2027.

라이프웨이 푸드 (LWAY)는 2024년 4분기 및 전체 연도에 대해 기록적인 재무 결과를 보고했으며, 연간 순매출은 $186.8백만에 달해 전년 대비 17% 증가했습니다. 이 회사는 21분기 연속으로 전년 대비 성장률을 기록했으며, 4분기 순매출은 $46.9백만에 달했습니다.

2024 회계연도의 주요 재무 하이라이트는 다음과 같습니다:

  • 총 이익률 26.0%
  • SG&A 비용은 순매출의 18.3%
  • 순이익 $9.0백만
  • 주당 순이익 $0.61 기본 및 $0.60 희석

회사의 성장은 주로 브랜드 음용 케피르 제품의 판매량 증가에 의해 주도되었습니다. 라이프웨이는 Waukesha 시설의 업그레이드를 통해 생산 능력을 확장하고 있으며, 이는 생산 능력을 거의 두 배로 늘리고 병입 속도를 세 배로 증가시킬 것입니다. 회사는 2027 회계연도까지 조정된 EBITDA가 $45-50백만에 이를 것으로 예상하고 있습니다.

Lifeway Foods (LWAY) a annoncé des résultats financiers record pour le quatrième trimestre et l'année entière 2024, avec un chiffre d'affaires net annuel atteignant $186,8 millions, marquant une augmentation de 17 % par rapport à l'année précédente. L'entreprise a atteint son 21e trimestre consécutif de croissance d'une année sur l'autre, avec un chiffre d'affaires net de 46,9 millions de dollars au quatrième trimestre.

Les points clés financiers pour l'exercice 2024 comprennent :

  • Marge brute de 26,0 %
  • Dépenses SG&A à 18,3 % du chiffre d'affaires net
  • Bénéfice net de 9,0 millions de dollars
  • Bénéfice par action de 0,61 $ de base et 0,60 $ dilué

La croissance de l'entreprise a été principalement tirée par l'augmentation des volumes de produits de kéfir à boire de marque. Lifeway étend ses capacités de production avec des améliorations dans son usine de Waukesha, ce qui va presque doubler la capacité de production et tripler la vitesse d'embouteillage. L'entreprise maintient ses prévisions pour un EBITDA ajusté de 45 à 50 millions de dollars d'ici l'exercice 2027.

Lifeway Foods (LWAY) hat für das 4. Quartal und das gesamte Jahr 2024 rekordverdächtige finanzielle Ergebnisse gemeldet, mit einem jährlichen Nettoumsatz von $186,8 Millionen, was einem Anstieg von 17% im Vergleich zum Vorjahr entspricht. Das Unternehmen erzielte sein 21. aufeinanderfolgendes Quartal mit Wachstum im Jahresvergleich, mit einem Nettoumsatz von $46,9 Millionen im 4. Quartal.

Wichtige finanzielle Höhepunkte für das Geschäftsjahr 2024 umfassen:

  • Bruttogewinnmarge von 26,0%
  • SG&A-Ausgaben von 18,3% des Nettoumsatzes
  • Nettogewinn von $9,0 Millionen
  • Gewinn pro Aktie von $0,61 unverwässert und $0,60 verwässert

Das Wachstum des Unternehmens wurde hauptsächlich durch die gestiegenen Verkaufszahlen von markenbezogenen trinkbaren Kefirprodukten vorangetrieben. Lifeway erweitert seine Produktionskapazitäten mit Verbesserungen in seiner Anlage in Waukesha, die die Produktionskapazität fast verdoppeln und die Abfüllgeschwindigkeit verdreifachen wird. Das Unternehmen hält an seiner Prognose für ein bereinigtes EBITDA von $45-50 Millionen bis zum Geschäftsjahr 2027 fest.

Positive
  • Record net sales of $186.8M, up 17% YoY
  • 21 consecutive quarters of year-over-year growth
  • Strong Q4 performance with $46.9M in net sales
  • Net income of $9.0M for FY2024
  • Planned production capacity expansion at Waukesha facility
Negative
  • SG&A expenses increased to 18.3% of net sales
  • Gross profit margin at 26.0% indicates cost pressures

Insights

Lifeway Foods' Q4 and full-year 2024 results show exceptional momentum with record-breaking annual sales of $186.8 million, representing 17% year-over-year growth. This marks their 21st consecutive quarter of year-over-year growth, demonstrating remarkable consistency in execution.

The company achieved net income of $9.0 million ($0.61 per basic share), with gross margins at 26.0% and SG&A expenses at 18.3% of net sales. This indicates an operating margin of approximately 7.7%, showing the company can maintain profitability while rapidly expanding.

The strategic expansion of their Waukesha facility represents a significant capacity enhancement that will nearly double production capacity and more than triple bottling speed. This proactive infrastructure investment positions them to support continued growth without supply constraints.

Management's confidence in maintaining their FY2027 Adjusted EBITDA target of $45-50 million suggests they see a clear path to scaling operations efficiently. The company's success in securing expanded distribution for key products like Farmer Cheese and ProBugs indicates strong retailer relationships and growing consumer demand.

The consistent performance across 21 consecutive quarters through various economic conditions demonstrates that Lifeway has established significant brand loyalty in the probiotic food category, which continues to benefit from increasing consumer interest in functional nutrition.

Company achieves 2024 net sales of $186.8 million; up 17% year-over-year

21st consecutive quarter of year-over-year growth

Growing consumer interest in probiotic foods with bioavailable nutrients continues to drive strong demand for Lifeway products

MORTON GROVE, Ill., March 14, 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 fourth quarter and full year ended December 31, 2024.

"I am pleased to report another record year of net sales for Lifeway, spearheaded by the continued, strong volume growth of our flagship drinkable Lifeway Kefir," commented Julie Smolyansky, President and Chief Executive Officer of Lifeway. "After an extremely successful year in 2023 where we saw sales grow by more than 13%, that growth accelerated in 2024 during which Lifeway delivered further year-over-year growth of 17% to achieve annual net sales of $186.8 million. Our remarkable results were capped off by our second highest-ever quarterly net sales of $46.9 million in the fourth quarter, marking our 21st consecutive quarter of year-over-year growth. This sustained performance underscores the loyalty of our expanding customer base, and the effectiveness of our sales and marketing strategies. We recognize the tailwind from growing consumer interest in protein-rich foods with probiotics and bioavailable nutrients and have meaningfully invested in our core branded offerings to drive trial and accelerate velocities to capture a greater share of that demand. We also regularly evaluate opportunities to elevate the presence of our key branded products through expanded distribution, and were thrilled to announce the recent incremental placements of our Lifeway Farmer Cheese and ProBugs with key accounts. The strategic focus on our branded Lifeway Kefir and Farmer Cheese has delivered robust growth and brand recognition in 2024, and propels us into 2025 with very strong momentum," added Ms. Smolyansky.

Ms. Smolyansky continued, "The consumer focus on health and wellness continues to grow, and we remain focused on capitalizing on that heightened interest. As we build for the future, I'd like to celebrate the remarkable achievements our team has made in developing a state-of-the-art facility in Waukesha, Wisconsin. We are strategically investing this year to further boost our growth, and our scheduled upgrades at the Waukesha plant will almost double our production capacity and more than triple our bottling speed. We also expect to drive further operational efficiency across the business as we ship higher volumes of our products. To complement our improved production capabilities, we are accelerating our investments behind key product lines to further enhance our market leading position and broaden our brand awareness. 2024 was an excellent year for Lifeway, and I am confident that we are extremely well positioned to deliver another phenomenal performance in 2025."

Full Year 2024 Results

Net sales were $186.8 million for the year ended December 31, 2024, an increase of $26.7 million or 16.7% versus prior year. 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 26.0% for the year ended December 31, 2024.

Selling, general and administrative expenses as a percentage of net sales were 18.3% for the year ended December 31, 2024.

The Company reported net income of $9.0 million or $0.61 per basic and $0.60 per diluted common share for the year ended December 31, 2024.

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 Webcast

A 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 https://lifewaykefir.com/webinars-reports/.

About Lifeway Foods, Inc.

Lifeway 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 lifewayfoods.com.

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 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2024. Copies of these filings are available online at https://www.sec.govhttp://lifewaykefir.com/investor-relations/, 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 Advisors
Dan Tarman
Email: dtarman@perceptualadvisors.com

Derek Miller 
Vice President of Communications, Lifeway Foods
Email: derekm@lifeway.net 

General inquiries:
Lifeway Foods, Inc.
Phone: 847-967-1010
Email: info@lifeway.net

 

LIFEWAY FOODS, INC. AND SUBSIDIARIES

Unaudited Consolidated Balance Sheets

December 31, 2024 and 2023

(In thousands)











December 31,




2024



2023


Current assets









Cash and cash equivalents


$

16,728



$

13,198


Accounts receivable, net of allowance for credit losses and discounts & allowances of
   $1,590 and $1,270 at December 31, 2024 and 2023, respectively



15,424




13,875


Inventories, net



8,678




9,104


Prepaid expenses and other current assets



2,144




2,019


Refundable income taxes



631





Total current assets



43,605




38,196











Property, plant and equipment, net



26,862




22,764


Operating lease right-of use asset



118




192


Goodwill



11,704




11,704


Intangible assets, net



6,358




6,898


Other assets



1,900




1,900


Total assets


$

90,547



$

81,654











Current liabilities









Current portion of note payable


$



$

1,250


Accounts payable



10,401




9,976


Accrued expenses



5,103




4,916


Accrued income taxes






474


Total current liabilities



15,504




16,616











Note payable






1,483


Operating lease liabilities



70




118


Deferred income taxes, net



3,062




3,001


Total liabilities



18,636




21,218











Commitments and contingencies (Note 9)
















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; 15,100
   and 14,691 shares outstanding at 2024 and 2023



6,509




6,509


Paid-in capital



4,632




4,825


Treasury stock, at cost



(14,052)




(16,695)


Retained earnings



74,822




65,797


Total stockholders' equity



71,911




60,436











Total liabilities and stockholders' equity


$

90,547



$

81,654


 

LIFEWAY FOODS, INC. AND SUBSIDIARIES

Unaudited Consolidated Statements of Operations

For the three months and twelve months ended December 31, 2024 and 2023

 (In thousands, except per share data)

 




Three Months Ended

December 31,



Twelve months Ended

December 31,




2024



2023



2024



2023















Net sales


$

46,934



$

42,093



$

186,820



$

160,123



















Cost of goods sold



34,273




29,632




135,400




115,060


Depreciation expense



764




669




2,846




2,622


Total cost of goods sold



35,037




30,301




138,246




117,682



















Gross profit



11,897




11,792




48,574




42,441



















Selling expenses



3,487




2,802




14,743




11,776


General and administrative



7,562




3,102




19,439




13,130


Amortization expense



135




135




540




540


Total operating expenses



11,184




6,039




34,722




25,446



















Income from operations



713




5,753




13,852




16,995



















Other income (expense):

















Interest expense



(3)




(62)




(105)




(384)


Gain (loss) on sale of property and equipment



(11)




1




(8)




34


Other income



77




5




230




4


Total other income (expense)



63




(56)




117




(346)



















Income before provision for income taxes



776




5,697




13,969




16,649



















Provision for income taxes



936




1,728




4,944




5,282



















Net income (loss)


$

(160)



$

3,969



$

9,025



$

11,367



















Net earnings (loss) per common share:

















Basic


$

(0.01)



$

0.27



$

0.61



$

0.77


Diluted


$

(0.01)



$

0.26



$

0.60



$

0.75



















Weighted average common shares outstanding:

















Basic



14,857




14,691




14,769




14,667


Diluted



15,060




15,174




14,956




15,103


 

LIFEWAY FOODS, INC. AND SUBSIDIARIES

Unaudited Consolidated Statements of Cash Flows

For the Years Ended December 31, 2024 and 2023

(In thousands)











2024



2023









Cash flows from operating activities:









Net income


$

9,025



$

11,367


Adjustments to reconcile net income to operating cash flow:









Depreciation and amortization



3,386




3,162


Non-cash interest expense



17




6


Bad debt expense






2


Stock-based compensation



2,446




1,497


Deferred income taxes



61




(28)


Loss (gain) on sale of property and equipment



8




(34)


(Increase) decrease in operating assets:









Accounts receivable



(1,550)




(2,463)


Inventories



426




527


Prepaid expenses and other current assets



(125)




(574)


Refundable income taxes



(631)




44


Increase (decrease) in operating liabilities:









Accounts payable



156




1,859


Accrued expenses



217




1,102


Accrued income taxes



(474)




474


Net cash provided by operating activities



12,962




16,941











Cash flows from investing activities:









Purchases of property and equipment



(6,697)




(4,351)


Proceeds from sale of equipment



15




41


Purchase of investments






(100)


Net cash used in investing activities



(6,682)




(4,410)











Cash flows from financing activities:









Repayment of line of credit






(2,777)


Repayment of note payable



(2,750)




(1,000)


Net cash used in financing activities



(2,750)




(3,777)











Net increase in cash and cash equivalents



3,530




8,754


Cash and cash equivalents at the beginning of the period



13,198




4,444


Cash and cash equivalents at the end of the period


$

16,728



$

13,198











Supplemental cash flow information:









Cash paid for income taxes, net of (refunds)


$

5,987



$

4,792


Cash paid for interest


$

98



$

415


Non-cash investing activities









Accrued purchase of property and equipment


$

407



$

137


Right-of-use assets obtained in exchange for lease obligations


$



$

94


 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/lifeway-foods-announces-strong-fourth-quarter-and-record-breaking-full-year-2024-results-302401641.html

SOURCE Lifeway Foods, Inc.

FAQ

What was Lifeway Foods (LWAY) revenue growth in 2024?

Lifeway Foods achieved net sales of $186.8 million in 2024, representing a 16.7% increase from 2023.

What was LWAY's earnings per share (EPS) for full year 2024?

Lifeway reported earnings of $0.61 per basic share and $0.60 per diluted share in 2024.

How many consecutive quarters of growth has LWAY achieved as of Q4 2024?

Lifeway Foods achieved its 21st consecutive quarter of year-over-year growth in Q4 2024.

What is Lifeway's (LWAY) projected Adjusted EBITDA target for 2027?

Lifeway Foods maintains its guidance for Adjusted EBITDA of $45-50 million for FY2027.

What expansion plans does LWAY have for its Waukesha facility?

Lifeway is upgrading its Waukesha facility to almost double production capacity and more than triple bottling speed.
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MORTON GROVE