Lifeway Foods Inc., a leading U.S. supplier of kefir and fermented probiotic products to support the microbiome, reported financial results for the second quarter ending June 30, 2022.
Net sales increase 14.8% year-over-year to $33.5 million, up 33.9% compared to 2020; delivers 11th straight quarter of year-over-year net sales growth.
"I am excited to report yet another consecutive quarter of growth at Lifeway, driven primarily by the continued strong performance of our core drinkable Kefir," Julie Smolyansky, Lifeway's president and chief executive officer, said in the announcement. "Throughout 2022 we have continued to execute on our strategic initiatives, elevating consumer awareness and brand engagement, which has led to ongoing improvement in brand performance. This is highlighted in the second quarter by our 14.8% year-over-year net sales increase. Despite the industry-wide inflationary pressures and cautious spending trends, our customers have proven they will remain focused on gut health and nutrition. The strong demand for Lifeway products is signaled by our expanded distribution and accelerating velocities with key retail partners. Additionally, we continue to evaluate options to increase our presence in high visibility away-from-home locations including universities, small format convenience stores and healthcare settings. I look forward to building upon this incredible momentum we have garnered in the last two years, and maximizing gains for our business and our shareholders in the back half of 2022 and into 2023."
Second-quarter 2022 results
Net sales were $33.5 million for the second quarter ending June 30, 2022, an increase of $4.3 million or 14.8% from the same period in 2021. The net sales increase was primarily driven by higher volumes of its branded drinkable kefir and the impact of price increases implemented during the first quarter of 2022, and to a lesser extent the favorable impact of its acquisition of GlenOaks Farms during the third quarter of 2021.
Gross profit as a percentage of net sales was 17.0% for the second quarter ended June 30, 2022.
The company reported net income of $0.1 million or $0.01 per basic and diluted common share for the second quarter ended June 30, 2022.
Lifeway Foods Inc., which has been recognized as one of Forbes' Best Small Companies, is a leading supplier of the probiotic, fermented beverage known as kefir. In addition to its line of drinkable kefir, the company also produces cheese, probiotic oat milk, and a ProBugs line for kids. Lifeway's tart and tangy fermented dairy products are now sold across the United States, Mexico, Ireland and France.
