Lifeway Foods Reports Record First Quarter Sales of $44.6 Million, Driven by Strong Kefir Demand
Source: The DairyNews
Lifeway Foods Inc. announced net sales of $44.6 million for the first quarter ending March 31, 2024, marking an increase of $6.7 million or 17.8% compared to the same period in 2023. This growth was primarily attributed to higher volumes of its branded drinkable kefir.
"Following our tremendous results in 2023, I am thrilled to report yet another record-breaking quarter on the topline to kick off 2024," stated Julie Smolyansky, President and CEO of Lifeway Foods. "Fueled by volume growth in our flagship Lifeway drinkable kefir, we achieved our highest ever quarterly net sales of $44.6 million in Q1, reflecting nearly 18% year-over-year growth. Our strategic sales and marketing investments continue to accelerate sales velocities, increase brand awareness, and attract new consumers seeking better-for-you, premium products at great value. This marks our 18th consecutive quarter of growth and the 4th consecutive quarter of record net sales, demonstrating the loyalty of our core customer base."
Smolyansky highlighted Lifeway's strong operational execution, complemented by favorable transportation cost tailwinds, which contributed to improved key profitability metrics, including gross margin expansion and net income growth. "We are pleased with this strong start to the year and are consistently evaluating additional brand marketing and incremental distribution opportunities to build on this high bar of success throughout 2024," she added.
For the first quarter ended March 31, Lifeway Foods reported a gross profit margin of 25.8%, up from 21.7% in the same period in 2023. The 410-basis point increase was primarily driven by higher volumes of Lifeway branded products and favorable transportation costs.
Selling, general, and administrative expenses as a percentage of net sales remained consistent at 17.6% for the first quarter of 2024, unchanged from the same period in 2023.
Lifeway Foods reported a net income of $2.4 million or $0.17 per basic share and $0.16 per diluted share for the first quarter ending March 31, compared to a net income of $0.8 million or $0.06 per basic and diluted share in the same period in 2023.
Smolyansky highlighted Lifeway's strong operational execution, complemented by favorable transportation cost tailwinds, which contributed to improved key profitability metrics, including gross margin expansion and net income growth. "We are pleased with this strong start to the year and are consistently evaluating additional brand marketing and incremental distribution opportunities to build on this high bar of success throughout 2024," she added.
For the first quarter ended March 31, Lifeway Foods reported a gross profit margin of 25.8%, up from 21.7% in the same period in 2023. The 410-basis point increase was primarily driven by higher volumes of Lifeway branded products and favorable transportation costs.
Selling, general, and administrative expenses as a percentage of net sales remained consistent at 17.6% for the first quarter of 2024, unchanged from the same period in 2023.
Lifeway Foods reported a net income of $2.4 million or $0.17 per basic share and $0.16 per diluted share for the first quarter ending March 31, compared to a net income of $0.8 million or $0.06 per basic and diluted share in the same period in 2023.
