Lifeway Foods Reports 13% Increase in Q3 Net Sales, Driven by Core Product Growth
Source: DairyNews.today
Lifeway Foods Inc. (Nasdaq: LWAY), a leading supplier of probiotic and fermented dairy products, announced a 12.7% year-over-year increase in net sales for the third quarter ending Sept. 30, 2024.
The company reported net sales of $46.1 million, up $5.2 million from the same period last year, driven primarily by higher volumes of its flagship branded drinkable kefir products.
Gross profit margin for the quarter stood at 25.7% of net sales, reflecting steady operational performance.
CEO Highlights Strategic Growth Initiatives
Julie Smolyansky, President and CEO of Lifeway Foods, celebrated the company’s 20th consecutive quarter of topline growth, marking five years of sustained progress.
“We delivered our second-largest quarter ever with net sales of $46.1 million, fueled by double-digit growth year-over-year,” Smolyansky said. “Our flagship Lifeway Kefir continues to lead the charge, complemented by rising interest in our Lifeway Farmer Cheese and other high-protein, probiotic-rich offerings.”
Smolyansky noted significant retail wins, including expanded placement of Lifeway Kefir’s strawberry banana flavor at approximately 1,000 stores by year-end, incremental distribution of ProBugs at 260 regional retail locations in December, and national placement of Lifeway Farmer Cheese at an estimated 1,400 stores by Q1 2025.
“Demand for nutrient-dense foods with probiotics and protein has never been higher. We’re leveraging this momentum with strategic investments to amplify Lifeway’s exposure and drive consumer trial and adoption,” Smolyansky added.
Five-Year Growth and Operational Focus
Reflecting on the company’s Lifeway 2.0 Strategic Growth Plan initiated five years ago, Smolyansky highlighted a 98.4% increase in year-to-date net sales and a 115.3% rise in gross profit over that period.
“We’ve prioritized branded product visibility and streamlined operations, deprioritizing private label manufacturing to strengthen category dominance and improve margins,” she said.
Operational efficiencies, including better fixed cost absorption and higher production volumes, have driven favorable manufacturing outcomes. The company anticipates record-breaking net sales for 2024, with positive momentum heading into 2025.
Lifeway Foods continues to solidify its position as a market leader in the probiotic dairy sector, supported by strong consumer demand and strategic distribution gains.
Gross profit margin for the quarter stood at 25.7% of net sales, reflecting steady operational performance.
CEO Highlights Strategic Growth Initiatives
Julie Smolyansky, President and CEO of Lifeway Foods, celebrated the company’s 20th consecutive quarter of topline growth, marking five years of sustained progress.
“We delivered our second-largest quarter ever with net sales of $46.1 million, fueled by double-digit growth year-over-year,” Smolyansky said. “Our flagship Lifeway Kefir continues to lead the charge, complemented by rising interest in our Lifeway Farmer Cheese and other high-protein, probiotic-rich offerings.”
Smolyansky noted significant retail wins, including expanded placement of Lifeway Kefir’s strawberry banana flavor at approximately 1,000 stores by year-end, incremental distribution of ProBugs at 260 regional retail locations in December, and national placement of Lifeway Farmer Cheese at an estimated 1,400 stores by Q1 2025.
“Demand for nutrient-dense foods with probiotics and protein has never been higher. We’re leveraging this momentum with strategic investments to amplify Lifeway’s exposure and drive consumer trial and adoption,” Smolyansky added.
Five-Year Growth and Operational Focus
Reflecting on the company’s Lifeway 2.0 Strategic Growth Plan initiated five years ago, Smolyansky highlighted a 98.4% increase in year-to-date net sales and a 115.3% rise in gross profit over that period.
“We’ve prioritized branded product visibility and streamlined operations, deprioritizing private label manufacturing to strengthen category dominance and improve margins,” she said.
Operational efficiencies, including better fixed cost absorption and higher production volumes, have driven favorable manufacturing outcomes. The company anticipates record-breaking net sales for 2024, with positive momentum heading into 2025.
Lifeway Foods continues to solidify its position as a market leader in the probiotic dairy sector, supported by strong consumer demand and strategic distribution gains.
