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Lifeway Foods, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in net sales to $46,095,000 from $40,896,000 in the same quarter the previous year. The increase is attributed to higher volumes of branded drinkable kefir.
Cost of goods sold for the quarter was $33,508,000, representing 72.7% of sales, compared to 71.2% in the same quarter of the previous year. The increase in cost ratio is due to unfavorable milk pricing.
The company reported a gross profit of $11,867,000 for the quarter, compared to $11,143,000 in the previous year, with the decrease in profit margin attributed to unfavorable milk pricing.
Selling expenses increased to $3,979,000 from $2,884,000, primarily due to continued investments in marketing activities.
General and administrative expenses increased to $3,564,000 from $3,085,000, reflecting stock-based incentive compensation and non-routine stockholder action expenses.
Net income for the quarter was $2,976,000, down from $3,412,000 in the previous year. The decline is attributed to increased selling and administrative expenses.
Cash provided by operating activities was $15,541,000, while cash used in investing and financing activities was $5,431,000 and $2,750,000, respectively.
Lifeway had $5,000,000 available under its Revolving Credit Facility as of September 30, 2024, with no outstanding borrowings.
The filing also details a Shareholder Rights Agreement entered into on November 4, 2024, following an unsolicited acquisition proposal from Danone North America PBC (BN-1.42%).
The company continues to focus on expanding its product distribution, including new markets in South Africa and Dubai, and highlights its strategy to capture more of the growing health and wellness market.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Lifeway Foods Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.