Kefir sales drive Lifeway Foods' 1Q results up 10 percent

MORTON GROVE - Continued strong sales of its kefir dairy products boosted Lifeway Foods first quarter 2016 results by 10 percent, the company reported.

First quarter of 2016 net sales increased to $32.6 million from $29.6 million in the first quarter of 2015. Gross sales increased 12 percent, driven by higher sales of the company's Kefir products slightly offset by increased trade promotions and allowances.

Gross profit as a percent of net sales declined to 26.4 percent from 28.3 percent in the same period last year. The first quarter of 2016 gross margin decline reflects increased manufacturing costs primarily related to the ramp up of the Waukesha facility, which continued to expand its production volumes during the quarter. Milk prices were essentially flat versus the year ago period.

"We are pleased to announce an encouraging start to 2016 in which we achieved double-digit top-line revenue growth and a sequential increase in profitability," said Lifeway Foods CEO Julie Smolyansky. "Our solid first quarter results demonstrate the success of our strategic initiatives. In addition, increased distribution and brand awareness of our probiotic and functional dairy health food products drove our improved operational and financial performance. This positive momentum has us well-positioned for growth and we are confident in our ability to increase value for our shareholders."