Lifeway Foods Reports Second Quarter and Six Month Results
Monday August 16, 4:27 pm ET
Sales Increased Six Percent in the Second Quarter and 12 Percent for the Six Months Ended June 30, 2004
MORTON GROVE, Ill., Aug. 16 /PRNewswire-FirstCall/ -- Lifeway Foods, Inc. (Nasdaq: LWAY - News) announced its financial results for the second quarter and six months period ended June 30, 2004.
For the second quarter, revenues rose six percent to a record $4.002 million compared to $3.78 million in the same quarter a year ago. Net income was $432,109, or $0.05 per share, compared to $691,082, or $0.08 per share, for the second quarter of 2003. This decrease was primarily attributable to the sharp, temporary second quarter spike in milk prices.
For the six month period ended June 30, 2004, revenues increased approximately 12 percent to $7.94 million from $7.08 million, in the same period last year. Net income was $1.20 million, or $0.14 per share, compared to net income of $1.68 million, or $0.20 per share, in the same period a year ago.
"We are pleased with our continued growth and record revenues in the second quarter," Julie Smolyansky, Lifeway Foods' President stated. "Our second quarter revenue growth is especially encouraging because it comes on top of a large initial stocking order by Sav-A-Lot stores in the 2003 second quarter. We continue to see a positive response in all our markets to our new packaging, as well as to the introduction last week of Slim 6(TM), America's first and only no sugar added, low carb kefir. We also look forward to further strengthening our presence on the East Coast with our recent acquisition of Ilya's Farms.
"The decrease in net income for this quarter was a direct result of an increase in milk prices of more than 100 percent. However, we do not anticipate a similar impact to our margins in the third quarter due to a 50 percent reduction in milk prices and to a price increase implemented by Lifeway in the beginning of June," Smolyansky said.
Lifeway, named as Chicago's 25th fastest-growing public firms by Crain's Chicago Business this week, is a manufacturer of cultured, probiotic and functional food products in the health food industry, and is America's leading supplier of the cultured dairy product known as kefir. The Company markets 12 flavors of kefir, and America's first and only no sugar added, low carb kefir, Slim 6(TM). The Company also participates in the organic and soy markets with Lifeway Organic(TM), Organic Kefir and Kefir Cheese, and America's first soy kefir called SoyTreat(TM).
For more information, contact Julie Smolyansky, President, Lifeway Foods Inc. at (847) 967-1010 or e-mail at info@lifeway.net and visit lifeway.net .
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