Q1 2024 Lifeway Foods Inc Earnings Call Transcript
Key Points
- Record-breaking quarterly net sales of $44.6 million, marking an increase of 17.8% compared to the first quarter of 2023.
- Achieved 18th consecutive quarter of year-over-year net revenue growth, demonstrating strong and consistent market performance.
- Significant improvement in gross profit margin to 25.8%, up from 21.7% in the first quarter of 2023, driven by higher volumes and favorable transportation costs.
- Net income nearly tripled to $2.4 million, with EPS rising to $0.17 per basic and $0.16 per diluted share, compared to $0.8 million or $0.06 per share in the first quarter of 2023.
- Continued dominance in the U.S. kefir market with a 22.6% increase in net sales of drinkable kefir, reinforcing Lifeway's leadership in the industry.
- Increased selling, general, and administrative expenses, rising by $1.2 million to $7.8 million due to higher operational costs.
- Capital spending rose by approximately $0.7 million to $2.5 million, reflecting higher investments needed to support ongoing growth.
- Consumers continue to face macroeconomic pressures such as inflation and high interest rates, which could impact spending habits and demand for premium products.
- While SG&A as a percentage of net sales remained stable, the absolute increase in expenses could impact profitability if not managed alongside continued revenue growth.
- Dependence on the performance of the kefir market, with significant focus and resources dedicated to this single product category, which could pose risks if market dynamics shift.
Good morning. Welcome to Lifeway Foods' First Quarter 2024 Conference Call. On the call with me today is Julie Smolyansky, President and Chief Executive Officer. By now, everyone should have access to the press release that went out this morning. If you have not received the release, it is available on the Investor Relations portion of Lifeway's website at www.lifewayfoods.com. A recording of this call will be available on the company's website.
Before we begin, we would like to remind everyone that the prepared remarks contain forward-looking statements. The words believe, expect, anticipate, and other similar expressions generally identify forward-looking statements. These statements do not guarantee future performance, and therefore, undue reliance should not be placed on them. Actual results could differ materially from those projected in any forward-looking statements.
Lifeway assumes no obligation to update any forward-looking projections that may be made in today's release or call. All of the forward-looking
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
