Lifeway Foods reports sales increase

MORTON GROVE - Lifeway Foods Inc. Monday reported financial results for its fiscal year first quarter, saying its net sales were $29.4 million, an increase of $4 million or 15.7% from the same period in 2020.

The net sales increase was primarily driven by higher volumes of its branded drinkable kefir, the company said. Approximately 30% of the increase results from the Farmers to Families Food Box program with the United States Department of Agriculture, which began during the quarter.

"Of note, our net income increased nearly 800% from approximately $150,000 in the first quarter of 2020 to $1.3 million in the first quarter of 2021. Our decision to increase advertising and drive new customer acquisition through television campaigns and digital engagement has invigorated and accelerated our growth," said Julie Smolyansky, Lifeway's president and CEO.

Selling expenses increased to $3.2 million for the first quarter from $2.6 million in the first quarter of 2020. The increase versus prior year primarily reflects advertising expenses related to television and digital advertising campaigns in the quarter, partially offset by lower compensation expense, Lifeway said.