Lifeway Foods achieves most sales in company history
Lifeway Foods announced record financial results for the third quarter ended Sept. 30.
- Net Sales: $57.1 million, highest in company history, up 24.0% year-over-year and approximately 29% 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: 28.7%, up from 25.7% last year
- Selling Expense: 8.8% of net sales, slightly up from last year, reflecting continued investment in marketing and distribution.
- Net Income: $3.5 million, or $0.23 per basic and diluted common share, compared to $3.0 million, or $0.20 per basic and $0.19 per diluted share in the prior year
"We delivered another exceptional quarter that further solidifies Lifeway's dominant position in the kefir category and emphasizes the growing consumer demand for our flagship Lifeway Kefir and high-protein Lifeway Farmer Cheese," said Julie Smolyansky, President and Chief Executive Officer of Lifeway Foods. "With record net sales of $57.1 million, well ahead of the previous high set in Q2, we have once again raised the bar for our business while demonstrating the remarkable consistency of our growth trajectory. We will continue to capitalize on the powerful health and wellness consumer trends, including the surge in GLP-1 medication use and gut health awareness. We are investing heavily in our marketing efforts and our manufacturing capabilities to support our accelerating velocities and future growth."
Smolyansky continued, "In addition to our topline strength, we delivered 300 basis points of gross margin expansion year-over-year in Q3. In September, we completed the first stage of our strategic Waukesha plant expansion, which has increased capacity and helped power the operational efficiency gains we are building across our business. This expansion will enable us to continue driving profitable growth for the foreseeable future as we position ourselves to meet the surging demand in our space."
Building on its flagship kefir and Farmer Cheese, Lifeway continues to enter adjacent product categories to meet evolving consumer tastes. The Company recently announced Muscle Mates, a ready-to-drink functional beverage packed with 20 grams of protein, 5 grams of creatine, and Lifeway's 12 live and active probiotic cultures to target the growing consumer demand for performance-drive, wellness-conscious products.
Lifeway's Probiotic Smoothies with Collagen also continue to resonate strongly with the consumer in the rapidly growing Collagen market.
"Our momentum is accelerating," Smolyansky concluded. "We are stacking record quarters while delivering expanding margins and on-trend innovation. We have the right team in place, are executing at the highest level, and I am confident in our ability to sustain these outstanding results."
Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!
