Lifeway Foods Inc. reported net sales of $44.6 million for the first quarter ended March 31, 2024, an increase of $6.7 million or 17.8% from the same period in 2023. The net sales increase was primarily driven by higher volumes of its branded drinkable kefir.
"Following our tremendous results in 2023, I am thrilled to report yet another record-breaking quarter on the topline to kick off 2024," said Julie Smolyansky, president and CEO of Lifeway Foods. "Driven by volume growth in our flagship Lifeway drinkable kefir, we delivered our highest ever quarterly net sales of $44.6 million in the first quarter, up nearly 18% year-over-year, as our strategic sales and marketing investments continue to accelerate our sales velocities, grow awareness and win new consumers seeking better-for-you, premium products at a great value. This marked our 18th consecutive quarter of growth and 4th consecutive quarter reporting record net sales, which demonstrates the loyalty of our core customer base. Through our strong operational execution, accompanied by favorable transportation cost tailwinds, we also continued to improve on our key profitability metrics in the quarter, highlighted by our gross margin expansion and net income growth. We are pleased with this strong start to the year and are consistently evaluating additional brand marketing and incremental distribution opportunities in an effort to build on this high bar of success throughout 2024."
Gross profit as a percentage of net sales increased to 25.8% for the first quarter ended March 31, from 21.7% during the same period in 2023. The 410-basis point increase versus the prior year was primarily due to the higher volumes of Lifeway branded products, and to a lesser extent a favorable impact of transportation costs.
Selling, general and administrative expenses as a percentage of net sales were 17.6% for the first quarter ended March 31, and 2023, respectively.
Lifeway Foods reported net income of $2.4 million or $0.17 per basic and $0.16 per diluted common share for the first quarter ended March 31, compared to net income of $0.8 million or $0.06 per basic and diluted common share during the same period in 2023.
