Lifeway Foods reports 10.7% sales increase, expands distribution

Published 04/06/2025, 21:52
Lifeway Foods reports 10.7% sales increase, expands distribution

MORTON GROVE, Ill. - Lifeway Foods, Inc. (NASDAQ:LWAY), a prominent supplier of kefir and fermented dairy products in the U.S., has announced a notable increase in its net sales and expansion of product distribution. The company, currently valued at $363 million, reported a 10.7% rise in net sales for the first two months of the second quarter, amounting to $37.6 million. This growth is compared to the same period in the previous year, continuing the company’s impressive 12.84% revenue growth over the last twelve months. As of May 31, 2025, year-to-date net sales have reached $83.7 million. According to InvestingPro data, the company maintains strong financial health with a "GREAT" overall score.

In response to the positive performance, Lifeway has provided a net sales forecast for the second quarter ending June 30, 2025, projecting figures between $52 million and $56 million. The company’s success is partly attributed to the heightened consumer interest in probiotic and protein-rich foods, which has increased the popularity of its cultured dairy drinkables and soft cultured cheese categories. This success is reflected in the company’s robust gross profit margin of 27.12% and impressive 71.54% stock return over the past year. InvestingPro analysis suggests the stock is currently trading above its Fair Value, with analysts maintaining a Strong Buy consensus.

Lifeway’s retail expansion includes the introduction of new products and the availability of existing items in major retail chains nationwide. Among the upcoming retail expansions are Amazon Fresh, BJ’s Wholesale Club, CVS, HEB, Hy-Vee, Kroger Divisions, Lowes Foods, Publix, Target, Whole Foods Market, and Winn-Dixie. This strategic move aims to make Lifeway’s probiotic-rich products more accessible to a broader consumer base.

The CEO of Lifeway Foods, Julie Smolyansky, highlighted the growing demand for functional foods that promote gut health and overall wellness. She noted the significant role of viral social media posts in driving consumer interest in Lifeway’s products, particularly kefir, which is associated with anti-bloating and skin health benefits.

Lifeway’s kefir and farmer cheese products, known for their live and active cultures, are designed to support immunity, digestion, and long-term health. The company’s distribution growth comes at a time when fermented foods and functional nutrition are increasingly sought after by health-conscious consumers.

This report is based on a press release statement, presenting only factual content without endorsement of claims. Lifeway Foods continues to solidify its position in the market as it responds to the evolving preferences of consumers seeking healthful dietary options. The company maintains a healthy financial position with a current ratio of 2.89, indicating strong liquidity. For deeper insights into LWAY’s financial health and growth prospects, including exclusive ProTips and comprehensive analysis, visit InvestingPro.

In other recent news, Lifeway Foods reported its first-quarter 2025 earnings, achieving an earnings per share (EPS) of $0.23, which met analysts’ expectations. However, the company’s revenue came in at $46.09 million, falling short of the anticipated $48 million. Despite this revenue miss, Lifeway Foods continues to demonstrate strong performance with a 16.7% increase in net sales for 2024, marking the 21st consecutive quarter of year-over-year net sales growth. The company remains focused on innovation and expanding its product offerings, which has helped maintain its leadership in the kefir market. Lifeway Foods anticipates continued growth in 2025, driven by product innovation and expansion into new markets, including Dubai and the UAE. The company’s projections include an EPS of $1.06 for FY2025 and $1.35 for FY2026, with revenue forecasts of $210.5 million and $232 million, respectively. Despite a revenue shortfall in the recent quarter, Lifeway Foods’ strategic focus on innovation and new market opportunities aims to sustain its growth trajectory. CEO Julie Smolansky emphasized the company’s robust position, highlighting the brand’s ambitions to extend its strength across categories and channels.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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