Lifeway Foods, Inc., a leading U.S. supplier of kefir and fermented probiotic products to support the microbiome, reported financial results for the fourth quarter and full year ended December 31, 2024.
“I am pleased to report another record year of net sales for Lifeway, spearheaded by the continued, strong volume growth of our flagship drinkable Lifeway Kefir. After an extremely successful year in 2023 where we saw sales grow by more than 13%, that growth accelerated in 2024 during which Lifeway delivered further year-over-year growth of 17% to achieve annual net sales of $186.8 million. Our remarkable results were capped off by our second highest-ever quarterly net sales of $46.9 million in the fourth quarter, marking our 21st consecutive quarter of year-over-year growth. This sustained performance underscores the loyalty of our expanding customer base, and the effectiveness of our sales and marketing strategies. We recognize the tailwind from growing consumer interest in protein-rich foods with probiotics and bioavailable nutrients and have meaningfully invested in our core branded offerings to drive trial and accelerate velocities to capture a greater share of that demand. We also regularly evaluate opportunities to elevate the presence of our key branded products through expanded distribution, and were thrilled to announce the recent incremental placements of our Lifeway Farmer Cheese and ProBugs with key accounts. The strategic focus on our branded Lifeway Kefir and Farmer Cheese has delivered robust growth and brand recognition in 2024, and propels us into 2025 with very strong momentum.”
“The consumer focus on health and wellness continues to grow, and we remain focused on capitalizing on that heightened interest. As we build for the future, I’d like to celebrate the remarkable achievements our team has made in developing a state-of-the-art facility in Waukesha, Wisconsin. We are strategically investing this year to further boost our growth, and our scheduled upgrades at the Waukesha plant will almost double our production capacity and more than triple our bottling speed. We also expect to drive further operational efficiency across the business as we ship higher volumes of our products. To complement our improved production capabilities, we are accelerating our investments behind key product lines to further enhance our market leading position and broaden our brand awareness. 2024 was an excellent year for Lifeway, and I am confident that we are extremely well positioned to deliver another phenomenal performance in 2025.”
Julie Smolyansky, President and Chief Executive Officer of Lifeway.
Full Year 2024 Results
- Lifeway reported net sales of $186.8 million for the year ended December 31, 2024, marking a $26.7 million or 16.7% increase from the prior year, driven primarily by higher volumes of its branded drinkable kefir.
- Gross profit accounted for 26.0% of net sales for the year ended December 31, 2024.
- Selling, general and administrative expenses as a percentage of net sales were 18.3% for the year ended December 31, 2024.
- The Company reported net income of $9.0 million or $0.61 per basic and $0.60 per diluted common share for the year ended December 31, 2024.
- We remain confident that the Company is on track to deliver Adjusted EBITDA1 of $45 – $50mm in FY2027.
Adjusted EBITDA is a non-GAAP financial measure. Adjusted EBITDA includes Operating Income, Depreciation and Amortization, and Stock-Based Compensation.
The Company does not provide guidance for GAAP Operating Income, nor a reconciliation of any forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures on a forward-looking basis, because it is unable to predict certain items contained in the GAAP measures without unreasonable efforts. These forward-looking non-GAAP financial measures do not include certain items, which may be significant, including, without limitation, non-recurring or non-operational expenses such as stock-based compensation, gain/loss on sale of equipment, deferred revenue and gain/loss on investments prior to payment of bonuses to employees.
Conference Call and Webcast
A webcast with Lifeway’s President and Chief Executive Officer discussing these results with additional comments and details is available through the “Investor Relations” section of the Company’s website at https://lifewaykefir.com/webinars-reports/.
Lifeway Foods, Inc.
Forbes has recognized Lifeway Foods, Inc. as one of the Best Small Companies. Lifeway Foods is America’s leading supplier of the probiotic, fermented beverage kefir. In addition to its line of drinkable kefir, the company also produces a variety of cheeses and a ProBugs line for kids. Lifeway now sells its tart and tangy fermented dairy products across the United States, Mexico, Ireland, South Africa, United Arab Emirates, and France.