Lifeway Foods, Inc., makers of a nutritious, probiotic dairy beverage called kefir, announced today for the third quarter ended September 30, 2008, sales increased 15% to approximately $11,240,000 from $9,817,000 during the same period a year ago. This increase in sales was driven by another strong sales increase of Lifeway's kefir and ProBugs(R).
Third quarter 2008 gross profit increased 30% to $3,537,122 from $2,720,659 during the same period a year ago. Third quarter operating income increased 153% to $1,467,239 from $581,043 during the same period a year ago. Third quarter 2008 net income increased 83% to $854,916 from $468,194 during the same period a year ago.
Edward Smolyansky, CFO commented, "We are extremely proud of our third quarter and nine months 2008 results. Our margins continued to remain strong even as oil and energy prices reached record levels in July and August. All of our oil related production supplies, utilities and transportation costs hit record levels during the third quarter, and we have only just begun to see these costs subside as the price of oil retreats. Additionally, the cost of milk in October declined to the lowest level in 16 months, and we expect them the decline even further. In a very tight credit environment, our cash flows have never been stronger and, combined with these declining costs, should only further benefit us in the fourth quarter 2008 and into 2009"
Julie Smolyansky, CEO commented, "The final months of the year should be a very exciting time for our company as we continue to expand our club store initiative during this difficult economic time for consumers. In the coming weeks, we expect to begin shipments of our 8 oz Kefir variety pack to stores in the northeast region, and a new Probugs(TM) club variety pack to stores in the northern California region. In difficult economic times, when consumers are looking for value at warehouse and club type outlets, it is part of our growing initiative to provide value to these consumers."
About Lifeway Foods
Lifeway, recently named Fortune Small Business' 49th Fastest Growing Small Business, is America's leading supplier of the cultured dairy product known as kefir. Lifeway Kefir is a dairy beverage that contains Lifeway's exclusive 10 Live and Active probiotic cultures. While most regular yogurt only contains two or three of these "friendly" cultures, Lifeway kefir products offer more nutritional benefits. Lifeway offers 12 different flavors of its Kefir beverage, Organic Kefir and SoyTreat (a soy based kefir). Lifeway recently introduced a series of innovative new products such as pomegranate kefir, Greek-style kefir, a children's line of organic kefir products called ProBugs (TM) in a no-spill pouch in kid-friendly flavors like Orange Creamy Crawler and Sublime Slime Lime, and a line of organic whole milk kefir. Lifeway also produces a line of products marketed in US Hispanic communities, called La Fruta, Drinkable Yogurt (yogurt drinks distinct from kefir). In addition to its line of Kefir products, the company produces a variety of cheese products and recently introduced a line of organic pudding called It's Pudding! Live conference calls will now be on an annual basis to discuss fiscal full year results. For more information, contact Lifeway Foods, Inc. at (847) 967-1010 or e-mail at [email protected] and visit http://www.lifeway.net.