Lifeway Foods' 2023 Results: $160.1 Million in Net Sales
Source: The DairyNews
Lifeway Foods, Inc. (Nasdaq: LWAY), a prominent U.S. provider of kefir and fermented probiotic products fostering microbiome health, disclosed its financial outcomes for the fourth quarter and full year concluding on December 31, 2023.
Julie Smolyansky, President and CEO of Lifeway Foods, expressed satisfaction, stating, "I am delighted to announce another exceptional year for Lifeway Foods, marked by record-breaking annual net sales, primarily driven by the growth in our flagship Lifeway drinkable kefir." Smolyansky added, "Our outstanding performance in 2023, including our highest-ever quarterly net sales of $42.1 million in the fourth quarter, underscores our continuous growth trajectory, with 17 consecutive quarters of year-over-year expansion. The loyalty of our expanding customer base and the effectiveness of our strategic sales and marketing investments have been instrumental in driving volumes and attracting consumers seeking premium, healthy options. Notably, our profitability across key metrics, including gross profit margin and net income, saw significant improvements, reflecting our robust operational execution and favorable milk pricing. We are well poised to capitalize on this momentum in 2024 by further reinvesting in our core products to enhance brand exposure and fuel additional growth. I extend my gratitude to the entire Lifeway team, as well as our customers and retail partners, for their contributions to our outstanding performance in 2023."
Key Highlights from Full Year 2023 Results:
Net Sales: Totaled $160.1 million for the fiscal year ending December 31, 2023, representing a noteworthy increase of $18.6 million or 13.1% compared to the prior year. The surge in net sales primarily stemmed from heightened volumes of the company's branded drinkable kefir, coupled with the impact of price adjustments initiated during the fourth quarter of 2022.
Gross Profit Margin: Experienced a substantial rise to 26.5% of net sales for the fiscal year ending December 31, 2023, up from 18.9% in the corresponding period of 2022. The impressive 760-basis point increase was primarily attributable to increased volumes of Lifeway branded products, favorable milk pricing dynamics, and the impact of price adjustments enacted in the fourth quarter of 2022, along with reduced transportation expenses.
Selling, General, and Administrative Expenses (SG&A): Accounted for 15.6% of net sales for the fiscal year ending December 31, 2023, a decrease from 16.9% in the previous year, reflecting efficient cost management.
Net Income: Stood at $11.4 million or $0.77 per basic and $0.75 per diluted common share for the fiscal year ending December 31, 2023, compared to a net income of $0.9 million or $0.06 per basic and diluted common share in the same period of 2022, showcasing a significant improvement.
Key Highlights from Full Year 2023 Results:
Net Sales: Totaled $160.1 million for the fiscal year ending December 31, 2023, representing a noteworthy increase of $18.6 million or 13.1% compared to the prior year. The surge in net sales primarily stemmed from heightened volumes of the company's branded drinkable kefir, coupled with the impact of price adjustments initiated during the fourth quarter of 2022.
Gross Profit Margin: Experienced a substantial rise to 26.5% of net sales for the fiscal year ending December 31, 2023, up from 18.9% in the corresponding period of 2022. The impressive 760-basis point increase was primarily attributable to increased volumes of Lifeway branded products, favorable milk pricing dynamics, and the impact of price adjustments enacted in the fourth quarter of 2022, along with reduced transportation expenses.
Selling, General, and Administrative Expenses (SG&A): Accounted for 15.6% of net sales for the fiscal year ending December 31, 2023, a decrease from 16.9% in the previous year, reflecting efficient cost management.
Net Income: Stood at $11.4 million or $0.77 per basic and $0.75 per diluted common share for the fiscal year ending December 31, 2023, compared to a net income of $0.9 million or $0.06 per basic and diluted common share in the same period of 2022, showcasing a significant improvement.
