1. Lifeway achieved $186.8 million in 2024 net sales, a 17% increase. 2. This marks the company's 21st consecutive quarter of growth. 3. Strong consumer interest in probiotics drives demand for Lifeway products. 4. Upcoming facility upgrades will significantly enhance production capacity. 5. Lifeway is well positioned for continued strong performance in 2025.
Lifeway's consistent sales growth and production upgrades indicate positive market sentiment. Historically, companies showcasing steady growth often see stock value increase, as seen with similar food/beverage firms during market booms.
The article reflects strong financial performance and growth strategies, critical factors for investors assessing LWAY’s future potential.
The strategic upgrades will improve operational efficiency and sales capabilities, likely benefiting future earnings without immediate fluctuations in market conditions.
Growing consumer interest in probiotic foods with bioavailable nutrients continues to drive strong demand for Lifeway products.
MORTON GROVE, Ill., March 14, 2025 /PRNewswire/ -- Lifeway Foods, Inc. (Nasdaq: LWAY) ("Lifeway" or "the Company"), a leading U.S. supplier of kefir and fermented probiotic products to support the microbiome, reported financial results for the fourth quarter and full year ended December 31, 2024.
"I am pleased to report another record year of net sales for Lifeway, spearheaded by the continued, strong volume growth of our flagship drinkable Lifeway Kefir," commented Julie Smolyansky, President and Chief Executive Officer of Lifeway. "After an extremely successful year in 2023 where we saw sales grow by more than 13%, that growth accelerated in 2024 during which Lifeway delivered further year-over-year growth of 17% to achieve annual net sales of $186.8 million. Our remarkable results were capped off by our second highest-ever quarterly net sales of $46.9 million in the fourth quarter, marking our 21st consecutive quarter of year-over-year growth. This sustained performance underscores the loyalty of our expanding customer base, and the effectiveness of our sales and marketing strategies. We recognize the tailwind from growing consumer interest in protein-rich foods with probiotics and bioavailable nutrients and have meaningfully invested in our core branded offerings to drive trial and accelerate velocities to capture a greater share of that demand. We also regularly evaluate opportunities to elevate the presence of our key branded products through expanded distribution, and were thrilled to announce the recent incremental placements of our Lifeway Farmer Cheese and ProBugs with key accounts. The strategic focus on our branded Lifeway Kefir and Farmer Cheese has delivered robust growth and brand recognition in 2024, and propels us into 2025 with very strong momentum," added Ms. Smolyansky.
Ms. Smolyansky continued, "The consumer focus on health and wellness continues to grow, and we remain focused on capitalizing on that heightened interest. As we build for the future, I'd like to celebrate the remarkable achievements our team has made in developing a state-of-the-art facility in Waukesha, Wisconsin. We are strategically investing this year to further boost our growth, and our scheduled upgrades at the Waukesha plant will almost double our production capacity and more than triple our bottling speed. We also expect to drive further operational efficiency across the business as we ship higher volumes of our products. To complement our improved production capabilities, we are accelerating our investments behind key product lines to further enhance our market leading position and broaden our brand awareness. 2024 was an excellent year for Lifeway, and I am confident that we are extremely well positioned to deliver another phenomenal performance in 2025."
Net sales were $186.8 million for the year ended December 31, 2024, an increase of $26.7 million or 16.7% versus prior year. The net sales increase was primarily driven by higher volumes of Lifeway's branded drinkable kefir.
Gross profit as a percentage of net sales was 26.0% for the year ended December 31, 2024.
Selling, general and administrative expenses as a percentage of net sales were 18.3% for the year ended December 31, 2024.
The Company reported net income of $9.0 million or $0.61 per basic and $0.60 per diluted common share for the year ended December 31, 2024.
We remain confident that the Company is on track to deliver Adjusted EBITDA of $45 - $50mm in FY2027. The Company does not provide guidance for GAAP Operating Income, nor a reconciliation of any forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures on a forward-looking basis, because it is unable to predict certain items contained in the GAAP measures without unreasonable efforts.
A webcast with Lifeway's President and Chief Executive Officer discussing these results with additional comments and details is available through the "Investor Relations" section of the Company's website at https://lifewaykefir.com/webinars-reports/.
Lifeway Foods, Inc., which has been recognized as one of Forbes' Best Small Companies, is America's leading supplier of the probiotic, fermented beverage known as kefir. In addition to its line of drinkable kefir, the company also produces a variety of cheeses and a ProBugs line for kids. Lifeway's tart and tangy fermented dairy products are now sold across the United States, Mexico, Ireland, South Africa, United Arab Emirates, and France. Learn how Lifeway is good for more than just you at lifewayfoods.com.
This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, the drivers of demand for Lifeway's products, consumer trends, the anticipated effects of scheduled upgrades at the Waukesha plant, expected operating efficiencies and expectations regarding future operating and financial performance. These statements use words, and variations of words, such as "will," "continue," "future," "increase," "believe," "outlook," "expect," and "predict." You are cautioned not to rely on these forward-looking statements. These forward-looking statements are made as of the date of this press release, are based on current expectations of future events and thus are inherently subject to a number of risks and uncertainties, many of which involve factors or circumstances beyond Lifeway's control.
This press release refers to Adjusted EBITDA, which is a financial measure that has not been prepared in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), and may exclude items that are significant to understanding and assessing financial results. This non-GAAP measure is provided to enhance investors' overall understanding of the Company's financial performance.