New Press Release (and good news):
Monday November 2, 5:53 pm Eastern Time
INTERVIEW-Lifeway sees record Q3 earnings
CHICAGO, Nov 2 (Reuters) - Lifeway Foods Inc. said Monday it expects to report record
third-quarter earnings on strong sales of its so-called functional foods, which boast health
benefits beyond basic nutrition.
Michael Smolyansky, president and chief executive officer of Skokie, Ill.-based Lifeway, said he expects 1999 earnings to
grow by at least 25 percent from 1998's levels as demand builds for its Basics Plus dietary supplement drink, which he said
promotes gastrointestinal health and boosts immune systems. He expects revenues to grow by 25 to 30 percent in 1999.
''I would say I'm very conservative when I say (earnings growth of) 25 percent,'' Smolyansky told Reuters in a telephone
interview. ''You don't want to overstate it, but at the same time, inside I know for sure that I'm conservative.''
Lifeway in August posted 1998 second-quarter earnings of $214,467 or $0.06 a share, down from the prior year's $263,370
or $0.07. For the full year 1997, earnings were $700,000 or $0.19 a share, up from $618,000 or $0.16 a share in 1996.
The company plans to release its third quarter earnings this week, a spokeswoman said.
Lifeway, which is also the leading supplier of the fermented dairy drink kefir, obtained exclusive worldwide patent rights to
Basics Plus last month. The drink is a combination of kefir and Proventra, a beneficial bacteria strain developed by GalaGen
Inc. (Nasdaq:GGEN - news).
The bacteria is developed from cow colostrum which is collected in the first few milkings of a dairy cow after its calf is born.
Smolyansky said Lifeway will spend $500,000 on marketing for Basics Plus and will run advertisements in national health
magazines, and on radio and television. The product, which sells for about $2.99 to $3.49 for a 32-ounce container, is
available in health food stores and upscale grocery stores.
The supplement also sells in Eastern Europe, primarily in Smolyansky's native Ukraine. Lifeway also exports kefir and other
products to Russia and other parts of Eastern Europe and to Canada.
''The reason Basics Plus is a very interesting product for Ukraine is because they had the Chernobyl (nuclear) accident. The
majority of the people have compromised immune systems,'' he said. ''When they saw this product, they just jumped at it
because it is a natural immune supporter.''
Smolyansky said recent economic turmoil in Eastern Europe dampened sales only temporarily.
''The first few weeks in Russia, people were in disarray and couldn't understand what was going to happen,'' he said. ''Right
now the market has kind of settled and life is almost back to normal.''
Shares of Lifeway were up 1/8 at 5-1/2. |
