Monday, August 29, 2022

Lifeway Foods (LWAY)
A Mixed First Quarter

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

1Q22 Results. Lifeway reported mixed results in its delayed filing for the first quarter of 2022, which ended March 31, 2022. Revenue of $34.1 million came in above our $31 million expectation, but higher milk prices resulted in a net loss for the quarter of $895,000, or a loss of $0.06 per share, versus our projection of net income of $425,000, or $0.03 per share.

The Positives. Core kefir revenue rose 8.9% to $26.4 million, driven by increased distribution and price increases implemented since 4Q21. GlenOaks drinkable yogurt added $1.5 million to the top line, accounting for 5% of revenues. The Company recently was awarded another rotation at a large retailer in the club channel and continues to expand its presence in away-from-home locations.…

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.