NEWS... Lifeway Foods Reports Record 1st Quarter 2008 Results
MORTON GROVE, Ill., May 15 /PRNewswire-FirstCall/ -- Lifeway Foods, Inc., (NASDAQ:LWAY), makers of the nutritious, probiotic dairy beverage called kefir, announced today for the first quarter ended March 31, 2008, total sales increased 23% to approximately $11,122,000 from $9,022,000 during the same period a year ago. This increase in sales was driven by another strong sales increase of Lifeway's flagship kefir line, Lifeway's ProBugs(TM) Organic Kefir for Kids, and Lifeway's "Helios Organic" brand kefir.
First quarter 2008 gross profit decreased 2% to $3,490,731 from $3,572,419 during the same period a year ago. The cost of milk, Lifeway's largest raw material cost component was on the average 30% higher in the first quarter 2008, when compared with the first quarter 2007. Pre tax income was $1,446,551 in the first quarter 2008, compared to $1,781,105 in the first quarter 2007. Net income was $888,605 in the first quarter 2008, compared to $1,135,331 in the first quarter 2007.
Edward Smolyansky, CFO commented, "We are extremely pleased at our first quarter 2008 results. Sales were again very strong, and we really started to see the benefits of decreasing milk cost, which began in March. These decreases have since continued in April, and even more so in May, and we hope that this trend continues throughout the year. As far as revenues go, in April we had a couple of weeks where we surpassed the $1 million dollar a week threshold, and that is certainly an exciting event for a company such as ours." Smolyansky added, "In addition to the continued strength of our core drinkable dairy business, our 'Kefir Boutique' retail store concept, Starfruit(TM), opened it's doors April 15, and even though the weather has yet to fully cooperate in Chicago, the early results have surpassed our expectations, and we are now looking for a few more high profile sites in and around Chicago."
Julie Smolyansky, CEO commented, "You really have to be living under a rock to not know of the pressures that have faced dairy companies such as ourselves in the past year. The second half of 2007 was one of the most challenging periods in our company's brief history, and when we look at our first quarter 2008 results versus the second half of 2007, the difference is like day and night. We hope that we have navigated through the rough environment of record high milk costs, and have gotten back to period of relative calm."
