Lifeway Foods® Announces Record Results for the Second Quarter Ended June 30, 2024
Lifeway Foods (Nasdaq: LWAY) reported record results for Q2 2024, with net sales of $49.2 million, up 25.3% year-over-year. This marks the company's 19th consecutive quarter of year-over-year growth. The increase was primarily driven by higher volumes of branded drinkable kefir. Gross profit margin was 27.0%, while SG&A expenses were 15.8% of net sales. Net income reached $3.8 million, or $0.26 per basic share and $0.25 per diluted share, compared to $3.2 million in Q2 2023. CEO Julie Smolyansky highlighted the strong demand for bioavailable foods like Lifeway Kefir and Farmer Cheese, and the effectiveness of their sales and marketing investments in driving trial and capturing new customers.
Lifeway Foods (Nasdaq: LWAY) ha riportato risultati record per il secondo trimestre del 2024, con vendite nette di 49,2 milioni di dollari, in aumento del 25,3% rispetto all'anno precedente. Questo segna il 19° trimestre consecutivo di crescita anno su anno per l'azienda. L'aumento è stato principalmente guidato da volumi più elevati di kefir bevibile a marchio. Il margine di profitto lordo è stato del 27,0%, mentre le spese SG&A hanno rappresentato il 15,8% delle vendite nette. Il reddito netto ha raggiunto 3,8 milioni di dollari, o 0,26 dollari per azione base e 0,25 dollari per azione diluita, rispetto ai 3,2 milioni di dollari del secondo trimestre 2023. La CEO Julie Smolyansky ha evidenziato la forte domanda di alimenti bio disponibili come Lifeway Kefir e Farmer Cheese, e l'efficacia dei loro investimenti in vendite e marketing nel favorire il trial e nell'acquisire nuovi clienti.
Lifeway Foods (Nasdaq: LWAY) reportó resultados récord para el segundo trimestre de 2024, con ventas netas de 49,2 millones de dólares, un aumento del 25,3% en comparación con el año anterior. Esto marca el 19º trimestre consecutivo de crecimiento interanual de la compañía. El aumento fue impulsado principalmente por mayores volúmenes de kefir bebible de marca. El margen de utilidad bruta fue del 27,0%, mientras que los gastos SG&A representaron el 15,8% de las ventas netas. El ingreso neto alcanzó los 3,8 millones de dólares, o 0,26 dólares por acción básica y 0,25 dólares por acción diluida, en comparación con 3,2 millones de dólares en el segundo trimestre de 2023. La CEO Julie Smolyansky destacó la fuerte demanda de alimentos bio disponibles como Lifeway Kefir y Farmer Cheese, así como la efectividad de sus inversiones en ventas y marketing para promover la prueba y captar nuevos clientes.
Lifeway Foods (Nasdaq: LWAY)는 2024년 2분기 기록적인 실적을 발표했습니다. 순매출 4천9백2십만 달러로, 지난해 같은 기간보다 25.3% 증가했습니다. 이는 회사의 19분기 연속 연간 성장을 의미합니다. 이 증가는 주로 브랜드 음용 케피르의 판매량 증가에 의해 주도되었습니다. 총 이익률은 27.0%였고, SG&A 비용은 순매출의 15.8%를 차지했습니다. 순이익은 3백8십만 달러, 즉 기본 주당 0.26달러 및 희석 주당 0.25달러에 달하며, 이는 2023년 2분기 3백2십만 달러에 비해 증가한 수치입니다. CEO인 줄리 스모얀스키는 Lifeway Kefir 및 Farmer Cheese와 같은 생체 이용 가능한 식품에 대한 강한 수요와 그들의 판매 및 마케팅 투자 효과가 새로운 고객을 유치하고 시식을 촉진하는 데 어떻게 기여했는지를 강조했습니다.
Lifeway Foods (Nasdaq: LWAY) a annoncé des résultats records pour le deuxième trimestre de 2024, avec un chiffre d'affaires net de 49,2 millions de dollars, en hausse de 25,3 % par rapport à l'année précédente. Cela marque le 19ème trimestre consécutif de croissance d'une année sur l'autre pour l'entreprise. L'augmentation a été principalement entraînée par des volumes plus élevés de kefir liquide de marque. La marge brute s'élevait à 27,0 %, tandis que les dépenses SG&A représentaient 15,8 % des ventes nettes. Le résultat net a atteint 3,8 millions de dollars, soit 0,26 dollar par action ordinaire et 0,25 dollar par action diluée, contre 3,2 millions de dollars au 2ème trimestre 2023. La PDG Julie Smolyansky a souligné la forte demande pour des aliments bio disponibles tels que Lifeway Kefir et Farmer Cheese, ainsi que l'efficacité de leurs investissements en vente et marketing pour inciter à l'essai et attirer de nouveaux clients.
Lifeway Foods (Nasdaq: LWAY) hat für das zweite Quartal 2024 Rekordergebnisse gemeldet, mit Nettoverkäufen von 49,2 Millionen Dollar, was einem Anstieg von 25,3% im Jahresvergleich entspricht. Dies markiert das 19. aufeinanderfolgende Quartal mit Wachstum im Jahresvergleich für das Unternehmen. Der Anstieg wurde hauptsächlich durch höhere Verkaufszahlen von markengebundem trinkbarem Kefir erzielt. Die Bruttogewinnmarge lag bei 27,0%, während die SG&A Aufwendungen 15,8% der Nettoverkäufe ausmachten. Der Nettogewinn belief sich auf 3,8 Millionen Dollar, oder 0,26 Dollar pro Stammaktie und 0,25 Dollar pro verwässerter Aktie, verglichen mit 3,2 Millionen Dollar im 2. Quartal 2023. CEO Julie Smolyansky hob die starke Nachfrage nach bioverfügbaren Lebensmitteln wie Lifeway Kefir und Farmer Cheese hervor und die Effektivität ihrer Verkaufs- und Marketinginvestitionen zur Förderung von Probieraktionen und zur Gewinnung neuer Kunden.
- Record net sales of $49.2 million, up 25.3% year-over-year
- 19th consecutive quarter of year-over-year growth
- Net income increased to $3.8 million from $3.2 million in Q2 2023
- Strong volume growth in flagship Lifeway drinkable kefir
- Improved profitability profile with solid gross margins
- None.
Insights
Lifeway Foods' Q2 2024 results showcase impressive growth, with net sales reaching
The
The soaring demand for bioavailable foods like kefir reflects a broader consumer shift towards functional foods and gut health products. Lifeway's success in this niche positions them well in a growing market segment. The company's ability to achieve 19 consecutive quarters of growth suggests a sustainable trend rather than a short-term fad.
Lifeway's focus on their core kefir product and strategic marketing investments appear to be paying off, driving both new customer acquisition and increased product velocity. This strategy of doubling down on their strengths while expanding their customer base could lead to continued market share gains. The challenge will be maintaining this growth trajectory as they approach and surpass the
Demand for Bioavailable Foods like Kefir Soars
Net sales of
19th consecutive quarter of year-over-year growth
"Our incredible momentum continued in the second quarter as we delivered our 19th consecutive quarter of net sales growth and our 5th consecutive quarter breaking the Lifeway record on the topline," commented Julie Smolyansky, President and Chief Executive Officer of Lifeway Foods. "Our record net sales of
Second Quarter 2024 Results
Net sales were
Gross profit as a percentage of net sales was
Selling, general and administrative expenses as a percentage of net sales were
The Company reported net income of
Conference Call and Webcast
A pre-recorded conference call and webcast with Julie Smolyansky 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/ and will also be available for replay.
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
Forward-Looking Statements
This release (and oral statements made regarding the subjects of this release) contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, future operating and financial performance, product development, market position, business strategy and objectives. These statements use words, and variations of words, such as "continue," "build," "future," "increase," "drive," "believe," "look," "ahead," "confident," "deliver," "outlook," "expect," and "predict." Other examples of forward-looking statements may include, but are not limited to, (i) statements of Company plans and objectives, including the introduction of new products, or estimates or predictions of actions by customers or suppliers, (ii) statements of future economic performance, and (III) statements of assumptions underlying other statements and statements about Lifeway or its business. You are cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. 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; and customer acceptance of products and services. 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, 2023, and the Company's subsequent filings with the SEC. Copies of these filings are available online at https://www.sec.gov, http://lifewaykefir.com/investor-relations/, or on request from Lifeway. Information in this release is as of the dates and time periods indicated herein, and Lifeway does not undertake to update any of the information contained in these materials, except as required by law. Accordingly, YOU SHOULD NOT RELY ON THE ACCURACY OF ANY OF THE STATEMENTS OR OTHER INFORMATION CONTAINED IN ANY ARCHIVED PRESS RELEASE.
Media:
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 | ||||||||
Consolidated Balance Sheets | ||||||||
June 30, 2024 and December 31, 2023 | ||||||||
(In thousands) | ||||||||
June 30, 2024 | December 31, | |||||||
(Unaudited) | 2023 | |||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 14,633 | $ | 13,198 | ||||
Accounts receivable, net of allowance for credit losses and discounts & allowances of | 14,526 | 13,875 | ||||||
Inventories, net | 8,454 | 9,104 | ||||||
Prepaid expenses and other current assets | 1,488 | 2,019 | ||||||
Refundable income taxes | 180 | – | ||||||
Total current assets | 39,281 | 38,196 | ||||||
Property, plant and equipment, net | 25,276 | 22,764 | ||||||
Operating lease right-of-use asset | 154 | 192 | ||||||
Goodwill | 11,704 | 11,704 | ||||||
Intangible assets, net | 6,628 | 6,898 | ||||||
Other assets | 1,900 | 1,900 | ||||||
Total assets | $ | 84,943 | $ | 81,654 | ||||
Current liabilities | ||||||||
Current portion of note payable | $ | – | $ | 1,250 | ||||
Accounts payable | 9,370 | 9,976 | ||||||
Accrued expenses | 4,487 | 4,916 | ||||||
Accrued income taxes | – | 474 | ||||||
Total current liabilities | 13,857 | 16,616 | ||||||
Note payable | – | 1,483 | ||||||
Operating lease liabilities | 88 | 118 | ||||||
Deferred income taxes, net | 3,001 | 3,001 | ||||||
Total liabilities | 16,946 | 21,218 | ||||||
Commitments and contingencies (Note 9) | ||||||||
Stockholders' equity | ||||||||
Preferred stock, no par value; 2,500 shares authorized; no shares issued or outstanding | – | – | ||||||
Common stock, no par value; 40,000 shares authorized; 17,274 shares issued; 14,791 | 6,509 | 6,509 | ||||||
Paid-in capital | 5,532 | 4,825 | ||||||
Treasury stock, at cost | (16,050) | (16,695) | ||||||
Retained earnings | 72,006 | 65,797 | ||||||
Total stockholders' equity | 67,997 | 60,436 | ||||||
Total liabilities and stockholders' equity | $ | 84,943 | $ | 81,654 | ||||
LIFEWAY FOODS, INC. AND SUBSIDIARIES | ||||||||||||||||
Consolidated Statements of Operations | ||||||||||||||||
For the three and six months ended June 30, 2024 and 2023 | ||||||||||||||||
(Unaudited) | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Net sales | $ | 49,157 | $ | 39,230 | $ | 93,791 | $ | 77,134 | ||||||||
Cost of goods sold | 35,181 | 27,299 | 67,619 | 56,329 | ||||||||||||
Depreciation expense | 701 | 651 | 1,362 | 1,299 | ||||||||||||
Total cost of goods sold | 35,882 | 27,950 | 68,981 | 57,628 | ||||||||||||
Gross profit | 13,275 | 11,280 | 24,810 | 19,506 | ||||||||||||
Selling expense | 3,577 | 2,571 | 7,277 | 6,090 | ||||||||||||
General and administrative expense | 4,177 | 3,808 | 8,313 | 6,943 | ||||||||||||
Amortization expense | 135 | 135 | 270 | 270 | ||||||||||||
Total operating expenses | 7,889 | 6,514 | 15,860 | 13,303 | ||||||||||||
Income from operations | 5,386 | 4,766 | 8,950 | 6,203 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest expense | (47) | (109) | (98) | (213) | ||||||||||||
Gain on sale of property and equipment | – | 33 | – | 33 | ||||||||||||
Other income (expense), net | 20 | (5) | 15 | – | ||||||||||||
Total other income (expense) | (27) | (81) | (83) | (180) | ||||||||||||
Income before provision for income taxes | 5,359 | 4,685 | 8,867 | 6,023 | ||||||||||||
Provision for income taxes | 1,576 | 1,529 | 2,658 | 2,037 | ||||||||||||
Net income | $ | 3,783 | $ | 3,156 | $ | 6,209 | $ | 3,986 | ||||||||
Net earnings per common share: | ||||||||||||||||
Basic | $ | 0.26 | $ | 0.22 | $ | 0.42 | $ | 0.27 | ||||||||
Diluted | $ | 0.25 | $ | 0.21 | $ | 0.41 | $ | 0.26 | ||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 14,727 | 14,654 | 14,709 | 14,649 | ||||||||||||
Diluted | 15,197 | 15,084 | 15,176 | 15,058 | ||||||||||||
LIFEWAY FOODS, INC. AND SUBSIDIARIES | ||||||||
Consolidated Statements of Cash Flows | ||||||||
(Unaudited) | ||||||||
(In thousands) | ||||||||
Six months ended June 30, | ||||||||
2024 | 2023 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 6,209 | $ | 3,986 | ||||
Adjustments to reconcile net income to operating cash flow: | ||||||||
Depreciation and amortization | 1,632 | 1,569 | ||||||
Stock-based compensation | 1,296 | 655 | ||||||
Non-cash interest expense | 17 | 3 | ||||||
Bad debt expense | – | 2 | ||||||
Gain on sale of equipment | – | (33) | ||||||
(Increase) decrease in operating assets: | ||||||||
Accounts receivable | (651) | 91 | ||||||
Inventories | 650 | (39) | ||||||
Refundable income taxes | (180) | 40 | ||||||
Prepaid expenses and other current assets | 531 | 232 | ||||||
Increase (decrease) in operating liabilities: | ||||||||
Accounts payable | (574) | (2,526) | ||||||
Accrued expenses | (366) | 451 | ||||||
Accrued income taxes | (474) | 1,024 | ||||||
Net cash provided by operating activities | 8,090 | 5,455 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (3,905) | (1,990) | ||||||
Proceeds from sales or equipment | – | 40 | ||||||
Net cash used in investing activities | (3,905) | (1,950) | ||||||
Cash flows from financing activities: | ||||||||
Repayment of note payable | (2,750) | (500) | ||||||
Net cash used in financing activities | (2,750) | (500) | ||||||
Net increase in cash and cash equivalents | 1,435 | 3,005 | ||||||
Cash and cash equivalents at the beginning of the period | 13,198 | 4,444 | ||||||
Cash and cash equivalents at the end of the period | $ | 14,633 | $ | 7,449 | ||||
Supplemental cash flow information: | ||||||||
Cash paid for income taxes, net of (refunds) | $ | 3,312 | $ | 973 | ||||
Cash paid for interest | $ | 89 | $ | 238 | ||||
Non-cash investing activities | ||||||||
Accrued purchase of property and equipment | $ | 106 | $ | 110 | ||||
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SOURCE Lifeway Foods, Inc.
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