Lifeway Foods reports record second quarter
Courtesy of Lifeway Foods
Lifeway Foods Inc. announced record financial results for the second quarter ended June 30. The company also reported that third-quarter momentum is already outpacing last year's performance by more than 20%.
For its fiscal 2025 second quarter, Lifeway reported the following:
- Net Sales: $53.9 million, highest in Company history, up 9.7% year-over-year and approximately 18% on a comparable basis, adjusted for a customer relationship the Company strategically exited in the third quarter of 2024, and a distributor shifting from Lifeway delivered to customer pick-up in late 2024, resulting in lower net sales and lower freight expense.
- Gross Profit Margin: 28.6%, up from 27.0% last year
- SG&A: 17.6% of net sales, reflecting continued investment in marketing and distribution
- Net Income: $4.2 million, or $0.28 per basic and diluted common share, compared to $3.8 million, or $0.26 per basic and $0.25 per diluted share in the prior year
Unaudited estimated net sales for Q3 to date through Aug. 11 reached $26.4 million, powered by accelerating consumer demand for the company's flagship Lifeway Kefir and high-protein Lifeway Farmer Cheese.
"This was another quarter that reinforces Lifeway's position as the undisputed leader in the kefir category," said Julie Smolyansky, president and CEO of Lifeway Foods. "We delivered $53.9 million in net sales, our highest quarter ever, with strong, volume-led growth across our core portfolio. The consistency of our performance, even as we cycle past previous record highs, speaks to the strength of our brand, the loyalty of our customers, and the expanding reach of our platform."
Smolyansky continued, "Beyond topline growth, we expanded gross margin by 160 basis points year-over-year and more than 460 basis points sequentially, translating into double-digit net income and diluted EPS growth year-over-year. We are executing with discipline while capturing powerful consumer tailwinds – from the continued wellness boom to the surge in GLP-1 medication use – as more people seek nutrient-dense, protein-rich, probiotic foods that support digestion, satiety, and natural GLP-1 hormone production."
Lifeway will be named 2025 Processor of the Year by Dairy Foods magazine. "Earning this award is a testament to our team's dedication and to the role Lifeway has played in pioneering kefir in the U.S. for nearly 40 years," Smolyansky said.
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