Lifeway Foods Q2 sales rise on volume growth
Lifeway Foods Q2 sales rise on volume growth
Overview
U.S. kefir supplier's Q2 net sales rose 24% yr/yr to a quarterly record
Q2 net income and EPS fell sharply due to higher input and transport costs
Company expects margin and profitability recovery in 2027 as cost pressures ease
Outlook
Company expects gross margin and profitability to fully recover in 2027
Lifeway sees current margin pressure as temporary, citing positive milk cost outlook for 2027
Company expects Waukesha expansion completion in early 2027 to support growth
Result Drivers
VOLUME GROWTH - Co said record net sales were driven by sustained, volume-led performance and expanded distribution across retail and foodservice channels
HIGHER INPUT COSTS - Gross margin fell due to elevated milk prices, temporary increases in resin costs for packaging and higher oil-related transportation costs
MARKETING SPEND - Selling, general and administrative expenses rose as co continued investment in marketing and brand awareness
Company press release: ID:nPn8d1nY5a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Beat | $66.89 mln | $61.40 mln (2 Analysts) |
Q2 EPS |
| $0.01 |
|
Q2 Net Income |
| $127,000 |
|
Q2 Gross Profit |
| $13.03 mln |
|
Q2 Income From Operations |
| $600,000 |
|
Q2 Operating Expenses |
| $12.43 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the food processing peer group is "buy"
Wall Street's median 12-month price target for Lifeway Foods Inc is $34.50, about 18.1% above its August 12 closing price of $29.22
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 21 three months ago
Reuters Recommended Reads
Aug 11 - B&G Foods Q2 sales miss estimates on divestitures, lower base business volumes
Aug 11 - Smithfield Foods trims full-year forecasts as consumers rein in spending
Aug 12 - Packaging firm Amcor beats quarterly sales, profit estimates on higher prices
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)