Record sales and strategic …

Appearance date: March 14, 2025

You can find the complete copy of the earnings call in the complete earnings call.

• Lifeway Foods Inc (Nasdaq: Lway) achieved a record net turnover of $ 186.8 million in 2024 and marked an increase of 16.7%compared to the previous year.

• The company achieved its 21st quarter as a result of net turnover in the previous year, which is due to the strong demand for the drinkable kefir of Lifeway brands.

• Lifeway Foods Inc (Nasdaq: Lway), despite the inflation pressure, adhered to a solid gross profit span of 26%, which indicates effective cost management.

• The company expanded its sales network, including the addition of Lifeway Farmer Cheese to 1,400 Albertson shops and Probugs Bio -Kefir for children to over 250 Harris tea shops.

• Lifeway Foods Inc (Nasdaq: Lway) is still innovative with new product launches such as lactose -free kefir and probiotic smoothies with collagen that have an impact on the development of consumer preferences.

• The inflationary prices for milk, the company's largest raw material, presented the challenges in maintaining the profit margins.

• Despite strong sales growth, the company has increasing comparisons of the year compared to the previous year, which may maintain the same growth dynamics.

• The capital expenditure rose to 6.7 million US dollars, which also reflects the higher operating costs.

• The macroeconomic environment, including high prices and interest rates, harbors potential risks for consumer expenses and demand.

• While international expansion efforts in regions such as Dubai are promising, they are currently not contributing significantly to the income.

Q: Can you explain the factors in more detail that drive strong sales growth in 2024? A: Julie Smolyansky, CEO, explained that growth was mainly driven by higher volumes of drinkable kefir with life. The company recorded a strong double-digit, volume-guided growth in all four quarters, supported by strategic sales and marketing investments that increased the commitment and demand for core products.

Q: How did inflation affect your profit margins and what measures do you take to tackle it? A: Julie Smolyansky found that, despite the inflation pressure, especially in milk prices, the life path had kept a gross profit margin of 26% for 2024. The company focuses on promoting higher shipping volumes and pursuing productivity measures in order to further expand the gross margins.

Q: What are the most important innovations and product developments that Lifeway have introduced lately? A: Julie Smolyansky emphasized several innovations, including the introduction of lactose-free bio-full milk-kefir flavor fusions and probiotic smoothies with collagen. These products are aimed at the increasing demand from consumers for lactos -free and intestinal offers.