Lifeway Foods addresses misstatements by Smolyanskys

Lifeway Foods , Inc. (NASDAQ:LWAY), a prominent player in the dairy products industry with a market capitalization of $331 million and an impressive 95% stock return over the past year, has taken legal steps to address public misstatements made by two individuals associated with the company.

On Thursday, the company's legal counsel sent a letter to Edward and Ludmila Smolyansky's attorney, detailing the inaccuracies in their recent public statements.

The letter, now part of the company's formal records with the Securities and Exchange Commission (SEC), was included as Exhibit 99.1 in the company's 8-K filing on February 14, 2025. Lifeway Foods has not disclosed the specific content of the misstatements or the potential implications for the company or its stakeholders.

This action underscores Lifeway Foods' commitment to maintaining the integrity of its communications and ensuring that information disseminated to the public and investors is accurate and reliable. The company, headquartered in Morton Grove, Illinois, has a history dating back to 1986 and is known for its kefir and probiotic dairy products.

The SEC filing did not include any additional comments from the company's CEO and Secretary, Julie Smolyansky, regarding the nature of the misstatements or any measures the company may take beyond the legal correspondence. The document also refrained from providing further details on the relationship between Edward and Ludmila Smolyansky and Lifeway Foods, Inc.

In other recent news, Lifeway Foods, a leading supplier of kefir and fermented probiotic products, has rejected an acquisition offer from Danone (EPA:DANO) North America PBC. The company's Board of Directors, after thorough review with independent financial and legal advisors, deemed the offer as significantly undervaluing the company.

Lifeway Foods has been experiencing robust growth, with 21 consecutive quarters of growth up to the fourth quarter of 2024, including double-digit year-over-year revenue growth in the third quarter of 2024. Full-year 2024 net sales are expected to be between $185.0 million and $186.5 million, a marked increase from $160.1 million in 2023.

Evercore and Sidley Austin LLP are providing financial and legal advisory services to Lifeway during this period. The company's strategic plan emphasizes expanding the presence of its core kefir products and exploring adjacent categories to continue its trajectory of growth and value creation for shareholders.

Lifeway's management has also highlighted the company's momentum with new product lines and operational efficiency programs as key drivers for profitability. The company forecasts its annual Adjusted EBITDA to rise to between $45 million and $50 million by 2027. These are recent developments in the operations of Lifeway Foods.

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