Lifeway Food Stock Price, News & Analysis

Lifeway Foods (NASDAQ: LWAY), a leading kefir and fermented probiotic products supplier, reported strong Q1 2025 financial results. The company achieved net sales of $46.1 million, marking a 3.3% year-over-year increase and its 22nd consecutive quarter of year-over-year sales growth. Notable highlights include a 44% increase in EPS with net income reaching $3.5 million ($0.23 per share). The company's core metrics showed solid performance with a gross profit margin of 24.0% and SG&A expenses at 20.2% of net sales. Excluding strategic adjustments, Lifeway delivered nearly 11% volume-led growth. The company secured commitments for over 2,000 new distribution points and expanded presence to 40 airports. Management remains confident in achieving their FY2027 Adjusted EBITDA target of $45-50 million.

Edward Smolyansky, who owns ~27% of Lifeway Foods (NASDAQ: LWAY) with Ludmila Smolyansky, criticizes the company's amended 2024 Annual Report and recent executive compensation decisions. The key concerns include: 1) Potential delay of the 2025 Annual Meeting beyond June 2, despite Edward's submission of Board nominees on March 13, 2) Questionable compensation awards to CEO Julie Smolyansky, including a $2 million retention bonus and $6.5 million equity grant despite a 20.6% earnings decline, 3) Over $1 million spent on dismissed legal actions against shareholders, 4) Governance issues regarding Jason Burdeen (CEO's husband) acting in legal matters without qualifications, receiving $313,800 in compensation in 2024. The statement questions the board's rejection of Danone's premium offer and criticizes the company's legal and regulatory dysfunction under current leadership.

Lifeway Foods has achieved a significant milestone by surpassing $5 million in gross sales for the week ending April 27th, 2025. This record-breaking performance represents a 35% increase from the previous year, driven by strong demand for Lifeway Kefir and Lifeway Farmer Cheese products.

The company, a leading U.S. supplier of kefir and fermented probiotic products, will release its first quarter 2025 financial results on May 13, 2025 before market hours. CEO Julie Smolyanksy will discuss these results in a pre-recorded conference call and webcast, which will be accessible through the Investor Relations section of Lifeway's website.

Lifeway Foods (NASDAQ: LWAY) faces internal turmoil as Edward and Ludmila Smolyansky, who own 28% of shares, protest the dismissal of Amy Feldman, Senior Executive VP of Sales, on February 28, 2025. The firing occurs amid controversy over CEO Julie Smolyansky's recent compensation package, including a $2 million cash bonus and 283,337 shares valued at $6.5 million, representing 94% of the company's 2024 net income.

The share award is currently under litigation due to lack of required consent from major investor Danone North America. Edward and Ludmila Smolyansky demand

• Transparency regarding Feldman's termination
• Rescission of CEO's share award
• Distribution of equity to employees
• Release of Q1 2025 financial reports

The Smolyanskys have submitted a full slate of Board nominees for the 2025 Annual Meeting, pushing for leadership changes and improved governance.

Lifeway Foods (NASDAQ: LWAY) anticipates a $5 million net gain from the sale of Simple Mills to Flowers Foods, following their early investment in 2015. The total expected proceeds for Lifeway will reach $6.5 million, including a previously realized gain of $1.5 million in 2019.

The acquisition deal values Simple Mills at $795 million and is expected to close in Q1 2025, subject to regulatory approval. Lifeway's Board of Directors has expressed support for CEO Julie Smolyansky, who was responsible for the initial Simple Mills investment decision.

Lifeway Foods (NASDAQ: LWAY), a leading U.S. supplier of Kefir and fermented probiotic products, has responded to Edward Smolyansky's nomination of seven candidates to replace the company's entire Board of Directors at the 2025 annual meeting. The company notes that Smolyansky was previously terminated for cause as an officer.

The announcement comes after Lifeway reported record full-year earnings for 2024 and achieved its 22nd consecutive quarter of growth. The company's Audit and Corporate Governance Committee will review the nominees, and the Board will make recommendations in due course.

Lifeway maintains its focus on business opportunities and momentum, expressing confidence in continued growth driven by increasing consumer interest in microbiome health and the gut-brain connection. The company has expanded its presence across multiple international markets, including Mexico, Ireland, South Africa, UAE, and France.

Edward Smolyansky, along with Ludmila Smolyansky, who together own 4,163,141 shares of Lifeway Foods (NASDAQ: LWAY), has initiated a campaign to replace the company's Board of Directors. The move comes amid governance concerns and legal challenges, including a lawsuit from Danone, Lifeway's largest unaffiliated investor.

The campaign follows controversial decisions by the current board, including a $8.5 million CEO compensation package comprising a $2 million cash bonus and 283,337 shares granted to CEO Julie Smolyansky - representing over 94% of Lifeway's 2024 net income. Additionally, the board rejected Danone's unsolicited offer to acquire remaining shares at $27 per share, a 72% premium over the 3-month volume weighted average price.

The proposed new slate includes George Sent, a food and beverage industry investment banker, Edward Smolyansky, and company co-founder Ludmila Smolyansky, aiming to evaluate strategic alternatives and maximize shareholder value.

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 (NASDAQ: LWAY) has issued a statement responding to Danone's (OTCQX: DANOY) recent actions, including a lawsuit filed with the SEC. Lifeway characterizes these moves as part of a hostile takeover attempt at an undervalued price.

The company highlights tensions dating back to Danone's 1999 investment, citing issues such as Danone's resistance to executive compensation and competitive behaviors. Lifeway states that Danone has leveraged a 1999 Stockholders' Agreement, which Lifeway considers invalid, to its advantage at shareholders' expense.

On the business front, Lifeway reports strong performance with record full-year unaudited 2024 results in revenue, net income, and EBITDA. The company also achieved 17% year-over-year sales growth in the last week of February 2025, reaching $4,543,297 compared to $3,880,625 in the same period of 2024. Lifeway plans to file a counterclaim against Danone.