Tuesday, May 16, 2023
Joe Gomes, Managing Director, Equity Research Analyst, Generalist , 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.
Overview. The momentum exhibited in 2022 carried over into 2023 as Lifeway reported its 14th consecutive quarter of topline expansion. Higher pricing, accelerating kefir unit volume, and additional distribution drove the top line. Gross margin increased by 530 basis points y-o-y, reflecting higher pricing and volumes as well as favorable milk pricing.
1Q23 Results. Revenue totaled $37.9 million, up 11.2% year-over-year. Gross profit margin was 21.7%, compared to 16.4% in 1Q22. Lifeway reported net income of $830,000, or EPS of $0.06 per share, versus a net loss of $895,000, or a loss of $0.06/sh last year. We had forecast revenue of $36 million, gross margin of 22.2%, and net income of $1.26 million, or EPS of $0.08/sh.
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