Business
Lifeway Foods, Inc. Announces Results for First Quarter Ended March 31, 2021
Delivers sixth consecutive quarter of year-over-year net sales increases and net income increase of nearly 800% MORTON GROVE, Ill., May 17, 2021 (GLOBE
About this update from Lifeway Foods, Inc.
[{"type":"text","content":"Delivers sixth consecutive quarter of year-over-year net sales increases and net income increase of nearly 800%\nMORTON GROVE, Ill., May 17, 2021 (GLOBE NEWSWIRE) -- Lifeway Foods, Inc. (Nasdaq: LWAY) (“Lifeway” or “the Company”), the leading U.S. supplier of kefir and fermented probiotic products to support the microbiome, today reported financial results for the first quarter ended March 31, 2021. “I am pleased to report that our strong business momentum continued in the first quarter of 2021 with our sixth consecutive year-over-year quarterly net sales increase, and a tremendous 15.7% increase in net sales compared to the first quarter of 2020,” commented Julie Smolyansky, Lifeway’s President and Chief Executive Officer. “Of note, our net income increased nearly 800% from approximately $150,000 in the first quarter of 2020 to $1.3 million in the first quarter of 2021. Our decision to increase advertising and drive new customer acquisition through television campaigns and digital engagement has invigorated and accelerated our growth. We continue to make progress in profitability as a result of our previously outlined Lifeway 2.0 strategy. Current consumer trends around gut health, self-care and wellness bode well for mental health and immune supporting probiotic products, which reflects our strong performance year-to-date, and provides the foundation for a strong 2021.” First Quarter 2021 Results Net sales were $29.4 million for the first quarter, an increase of $4.0 million or 15.7% from the same period in 2020. The net sales increase was primarily driven by higher volumes of our branded drinkable kefir. Approximately 30% of the increase results from the Farmers to Families Food Box program with the United States Department of Agriculture (“USDA”) which began during the middle of the first quarter of 2021. Gross profit as a percentage of net sales increased to 27.4% for the first quarter from 23.6% during the same period in 2020. The increase versus the prior year was primarily due to the favorable impact of operating leverage that arises from higher net sales relative to fixed costs, and to a lesser extent favorable milk pricing. Additionally, depreciation expense increased reflecting our continued investment in manufacturing improvements. Selling expenses increased $0.6 million, or 25.1%, to $3.2 million for the first quart...