Business
Lifeway Foods, Inc. Reports Third Quarter 2020 Results
Third Quarter Net Sales Increase 14.6% Year-Over-Year to $26 Million MORTON GROVE, Ill., Nov. 16, 2020 (GLOBE NEWSWIRE) -- Lifeway Foods, Inc. (Nasdaq: LWAY)
About this update from Lifeway Foods, Inc.
[{"type":"text","content":"Third Quarter Net Sales Increase 14.6% Year-Over-Year to $26 Million\nMORTON GROVE, Ill., Nov. 16, 2020 (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 third quarter ended September 30, 2020.\n “I am pleased to report that our growth trajectory accelerated in the third quarter of 2020, with a 14.6% increase in sales compared to the third quarter of 2019,” commented Julie Smolyansky, Lifeway’s President and Chief Executive Officer. “Our core business continues to show improved velocities and our decision to focus on digital engagement to fuel online grocery purchases and grocery list initiatives has paid dividends in a retail world that has been shaped by COVID-19 buying habits. We are still investing heavily in customer acquisition strategies as we continue to market products that fit the needs of a growing number of consumers. The trends for multi-serve products with immunity supporting attributes such as probiotics, vitamin D and protein look good for the remainder of 2020 and beyond, and we intend to build on our messaging to tell the Lifeway story to those new to the category. Our results show that retailers that have partnered with Lifeway are seeing gains as we drive category growth. We look forward to expanding those partnerships with increased variety to create a win-win scenario for both consumers and retailers.” Third Quarter ResultsNet sales were $26.0 million for the third quarter of 2020, an increase of 14.6% from $22.7 million in the third quarter of 2019. Gross profit as a percentage of net sales was 29.1% for the second quarter of 2020, an increase of 140 basis points from 27.7% for the second quarter of 2020. Gross profit percentage was 22.8% in prior year period. The increase versus the prior year was primarily due to the impact of favorable milk pricing, and to a lesser extent favorable freight costs. Additionally, depreciation expense increased reflecting our continued investment in manufacturing improvements. Third quarter of 2020 selling expenses decreased by 21.0% to $2.1 million compared to the third quarter of 2019 at $2.7 million. Selling expenses as a percentage of net sales were 8.1% during the third quarter compared to 11.8% for t...