Wednesday, August 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.
Increased Demand for Kefir. Lifeway experienced continued momentum in its kefir products, as the Company had its 15th consecutive quarter of topline growth. Higher volumes of the drinkable kefir along with higher prices continued to benefit Lifeway’s sales, while more favorable milk pricing allowed the Company to generate better gross margin, which improved 1,170 basis points over the previous year.
Great 2Q Results. Lifeway reported sales of $39.2 million, above last year’s $33.5 million and our projection of $37.5 million. Gross margin was 28.7% versus 17.0% in the prior year. Net income for Lifeway was $3.16 million, or diluted EPS of $0.21, compared to $0.12 million, or $0.01, last year. We projected net income of $0.97 million, or EPS of $0.06.
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