Demand for Bioavailable Foods like Kefir Soars Net sales of $49.2 million; up 25.3% year-over-year driven by volume growth of Lifeway Kefir 19th consecutive quarter of year-over-year growth MORTON GROVE, Ill., Aug. 13, 2024 /PRNewswire/ -- Lifeway Foods, Inc. (NASDAQ:LWAY) ("Lifeway" or "the Company"), a leading U.S. supplier of kefir and fermented probiotic products to support the microbiome, today reported financial results for the second quarter ended June 30, 2024. "Our incredible momentum continued in the second quarter as we delivered our 19th consecutive quarter of net sales growth and our 5th consecutive quarter breaking the Lifeway record on the topline," commented Julie Smolyansky, President and Chief Executive Officer of Lifeway Foods. "Our record net sales of $49.2 million were up more than 25% year-over-year, driven by continued volume growth in our flagship Lifeway drinkable kefir. Demand for bioavailable foods like Lifeway Kefir and Farmer Cheese is soaring and our customers further demonstrated their loyalty to our premium, healthy offerings. Notably, we delivered nearly $50 million in net sales, a remarkable milestone that we look forward to surpassing, and we also outperformed our previous quarterly sales record by more than 10%. Our amazing results on the topline demonstrate the effectiveness of our sales and marketing investments at driving trial, capturing new customers and accelerating velocities of our core products. Accompanying the very strong, volume-led topline growth, we continued to enhance our profitability profile with solid gross margins and strong net income growth, a testament to the seamless operational execution of our whole Lifeway team. We are thrilled with our results in the first half of 2024, and will continue to strategically invest behind the Lifeway brand to drive velocities, win new customers and position ourself to deliver more outstanding performances through the second half of this year and beyond." Second Quarter 2024 Results Net sales were $49.2 million for the second quarter ended June 30, 2024, an increase of $10.0 million or 25.3% from the same period in 2023. The net sales increase was primarily driven by higher volumes of our branded drinkable kefir. Gross profit as a percentage of net sales was 27.0% for the second quarter ended June 30, 2024. Selling, general and administrative expenses as a percentage of net sales were 15.8% for the second quarter ended June 30, 2024. The Company reported net income of $3.8 million or $0.26 per basic and $0.25 per diluted common share for the second quarter ended June 30, 2024 compared to net income of $3.2 million or $0.22 per basic and $0.21 per diluted common share during the same period in 2023. Conference Call and WebcastA pre-recorded conference call and webcast with Julie Smolyansky discussing these results with additional comments and details is available through the "Investor Relations" section of the Company's website at https://lifewaykefir.com/webinars-reports/  and will also be available for replay. About Lifeway Foods, Inc.Lifeway Foods, Inc., which has been recognized as one of Forbes' Best Small Companies, is America's leading supplier of the probiotic, fermented beverage known as kefir. In addition to its line of drinkable kefir, the company also produces a variety of cheeses and a ProBugs line for kids. Lifeway's tart and tangy fermented dairy products are now sold across the United States, Mexico, Ireland and France. Learn how Lifeway is good for more than just you at lifewayfoods.com. Forward-Looking Statements This release (and oral statements made regarding the subjects of this release) contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, future operating and financial performance, product development, market position, business strategy and objectives. These statements use words, and variations of words, such as "continue," "build," "future," "increase," "drive," "believe," "look," "ahead," "confident," "deliver," "outlook," "expect," and "predict." Other examples of forward-looking statements may include, but are not limited to, (i) statements of Company plans and objectives, including the introduction of new products, or estimates or predictions of actions by customers or suppliers, (ii) statements of future economic performance, and (III) statements of assumptions underlying other statements and statements about Lifeway or its business. You are cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from Lifeway's expectations and projections. These risks, uncertainties, and other factors include: price competition; the decisions of customers or consumers; the actions of competitors; changes in the pricing of commodities; the effects of government regulation; possible delays in the introduction of new products; and customer acceptance of products and services. A further list and description of these risks, uncertainties, and other factors can be found in Lifeway's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and the Company's subsequent filings with the SEC. Copies of these filings are available online at https://www.sec.gov, http://lifewaykefir.com/investor-relations/, or on request from Lifeway. Information in this release is as of the dates and time periods indicated herein, and Lifeway does not undertake to update any of the information contained in these materials, except as required by law. Accordingly, YOU SHOULD NOT RELY ON THE ACCURACY OF ANY OF THE STATEMENTS OR OTHER INFORMATION CONTAINED IN ANY ARCHIVED PRESS RELEASE. Media:Derek Miller Vice President of Communications, Lifeway General inquiries:Lifeway Foods, Inc.Phone:   LIFEWAY FOODS, INC. AND SUBSIDIARIES Consolidated Balance Sheets June 30, 2024 and December 31, 2023 (In thousands) June 30, 2024 December 31, (Unaudited) 2023 Current assets Cash and cash equivalents $ 14,633 $ 13,198 Accounts receivable, net of allowance for credit losses and discounts & allowances of      $1,550 and $1,270 at June 30, 2024 and December 31, 2023 respectively 14,526 13,875 Inventories, net 8,454 9,104 Prepaid expenses and other current assets 1,488 2,019 Refundable income taxes 180 – Total current assets 39,281 38,196 Property, plant and equipment, net 25,276 22,764 Operating lease right-of-use asset 154 192 Goodwill 11,704 11,704 Intangible assets, net 6,628 6,898 Other assets 1,900 1,900 Total assets $ 84,943 $ 81,654 Current liabilities Current portion of note payable $ – $ 1,250 Accounts payable 9,370 9,976 Accrued expenses 4,487 4,916 Accrued income taxes – 474 Total current liabilities 13,857 16,616 Note payable – 1,483 Operating lease liabilities 88 118 Deferred income taxes, net 3,001 3,001 Total liabilities 16,946 21,218 Commitments and contingencies (Note 9) Stockholders' equity Preferred stock, no par value; 2,500 shares authorized; no shares issued or outstanding      at June 30, 2024 and December 31, 2023 – – Common stock, no par value; 40,000 shares authorized; 17,274 shares issued; 14,791      outstanding at June 30, 2024 and December 31, 2023 6,509