Core Insights - Lifeway Foods, Inc. has announced the establishment of National Kefir Day, to be celebrated annually on June 18, recognizing the cultural and nutritional significance of kefir and the company's legacy in promoting gut health for nearly 40 years [1][3] Group 1: Event Details - The official proclamation will occur at a press event in Chicago, featuring remarks from key leaders in government, medicine, and nutrition, including Lifeway's President and CEO Julie Smolyansky [2] - The event will highlight the connection between gut health and chronic disease prevention, with Smolyansky discussing kefir's role in supporting immunity and overall wellness [2] Group 2: Company Initiatives - Lifeway Foods aims to promote gut health, sustainability, and mindful nutrition through National Kefir Day, reflecting a cultural shift towards fermented foods for better health [3] - The company will distribute free Lifeway Kefir samples in major cities including Chicago, New York, Los Angeles, and Miami on June 18, and will sponsor a drone show over Lake Michigan to celebrate Chicago as the "Kefir Capital of the World" [5] Group 3: Marketing and Engagement - Lifeway is launching a tattoo challenge as part of the National Kefir Day festivities, rewarding fans who showcase their love for the brand with a year of free kefir [6] - Participants are encouraged to share photos or videos of their Lifeway-inspired tattoos on social media platforms [7] Group 4: Company Background - Lifeway Foods is recognized as a leading supplier of probiotic kefir and has expanded its product line to include various cheeses and a ProBugs line for children, with products sold in multiple countries [8]

Core Insights - Lifeway Foods, Inc. has achieved net sales of $37.6 million for the first two months of Q2 2025, marking a 10.7% increase year-over-year [1] - Year-to-date net sales reached $83.7 million as of May 31, 2025, with expectations for Q2 net sales to be between $52 million and $56 million [1] - The company is expanding distribution of its products in response to rising consumer interest in probiotic and functional foods [2] Sales Performance - The company reported a 10.7% increase in net sales for the first two months of Q2 2025 compared to the same period last year [1] - Year-to-date net sales as of May 31, 2025, totaled $83.7 million [1] - Lifeway anticipates Q2 net sales to fall between $52 million and $56 million [1] Product Expansion - Lifeway is expanding its distribution across major retailers, including Amazon Fresh, BJ's Wholesale Club, CVS, HEB, and others [3] - New product launches include Lifeway Organic, Lactose Free Flavor Fusions and Lifeway Organic Kefir Shots in various retail locations [3] - The company is seeing a 63% unit increase in Lifeway Farmer Cheese year-to-date, indicating strong demand [2] Market Trends - There is a growing consumer interest in functional foods that support gut health and overall wellness, driven by social media trends [2] - Lifeway's products are made with live and active cultures, aimed at supporting immunity, digestion, and long-term health [2]

Core Viewpoint - The Smolyanskys, who own approximately 27% of Lifeway Foods, express serious concerns regarding the company's Q1 2025 performance and the Board's governance issues, emphasizing a need for immediate changes to restore operational discipline and shareholder alignment [1][3]. Financial Performance - Lifeway reported a 44% year-over-year increase in GAAP earnings per share, attributed entirely to a one-time $3.4 million gain from an investment sale, rather than improvements in the core kefir business [2]. - Income from operations declined nearly 55% year-over-year, with the operating margin falling to approximately 3.4%, down from 7.9% in Q1 2024 [5]. - Net sales increased only 3.3% year-over-year but declined 1.8% sequentially from Q4 2024 [5]. - Revenue from the 2021 acquisition of Glen Oaks has declined approximately 50% to date [5]. - Selling expenses rose sharply by 27% year-over-year and 35% from Q4 2024, without a corresponding increase in sales [5]. - Gross margin contracted by 180 basis points to 24.0%, while SG&A expenses climbed to 20.2% of sales [5]. Governance Concerns - The Smolyanskys criticized the Board's governance, particularly regarding the handling of the Danone offer and the subsequent attempt to nullify the Company's 1999 Stockholder Agreement with Danone [2][5]. - Concerns were raised about the $8.5 million in cash and shares awarded to CEO/Chair Julie Smolyansky shortly after these events, which were seen as misaligned with shareholder interests [2][5]. - The combined CEO/Chair role held by Julie Smolyansky has been identified as a significant governance failure, leading to a lack of independent oversight [5]. Shareholder Actions - The Smolyanskys are pursuing a consent path to achieve their goals, believing there is broad support from the investment community for swift changes [3]. - They have filed a preliminary consent statement and a preliminary proxy statement, nominating a slate of independent directors to restore operational discipline and long-term value creation [3][7].

Financial Data and Key Metrics Changes - LifeWay Foods reported net sales of $186.8 million for the year ended December 31, 2024, an increase of $26.7 million or 16.7% compared to the prior year, marking a record high annual top line result [6] - The company achieved a gross profit margin of 26% for the year, maintaining solid margins despite inflationary pressures on milk prices [7][8] - Net income for the year was $9 million, reflecting earnings per share (EPS) of $0.61 per basic and $0.60 per diluted share [10] Business Line Data and Key Metrics Changes - Net sales of the flagship drinkable LifeWay kefir increased by more than 20% in 2024 compared to the prior year, following a nearly 16% growth in 2023 [16] - LifeWay's Farmer's Cheese saw strong growth in the second half of the year, particularly in Q4, supported by strategic investments and increased distribution [20] Market Data and Key Metrics Changes - The company noted a growing customer interest in protein-rich foods with probiotics, which has been a significant driver of growth [7] - LifeWay's products are gaining traction in new markets, including initial shipments to Dubai and UAE, although this is not yet a major revenue contributor [24] Company Strategy and Development Direction - LifeWay Foods is focused on innovation, with plans to expand its product offerings in response to evolving consumer interests, including lactose-free and probiotic products [15][17] - The company aims to maintain its market leadership in the kefir category while exploring new distribution opportunities to enhance its footprint [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth momentum through 2025, despite macroeconomic pressures such as high prices and interest rates [12][26] - The company believes that health and wellness trends will continue to support its premium product portfolio for years to come [15] Other Important Information - LifeWay Foods has been actively participating in events to raise awareness about gut health and its products, including appearances at South by Southwest and Expo West [21][22] - The company is leveraging social media and influencer partnerships to enhance brand exposure and drive consumer engagement [23] Q&A Session Summary Question: What are the expectations for growth in the kefir market? - Management indicated that the addressable market for kefir is widening, and they are committed to maintaining their dominant position through innovation and strategic investments [16] Question: How is the company addressing inflationary pressures? - The company has maintained solid profit margins and is focused on driving higher shipment volumes to create operating leverage, which may lead to gross margin expansion [8][9]

Financial Data and Key Metrics Changes - Net sales reached $186.8 million for the year ended December 31, 2024, marking a record high and an increase of $26.7 million or 16.7% compared to the prior year [6] - Gross profit margin was reported at 26% for the year, maintained despite inflationary pressures on raw materials [7] - Net income for the year was $9 million, reflecting earnings per share (EPS) of $0.61 per basic and $0.60 per diluted share [10] Business Line Data and Key Metrics Changes - Net sales of the flagship drinkable LifeWay kefir increased by more than 20% in 2024 compared to the prior year, following a nearly 16% growth in 2023 [17] - LifeWay's Farmer's Cheese saw significant growth in the second half of the year, particularly strong in Q4, following strategic investments [21] Market Data and Key Metrics Changes - The company noted a growing customer interest in protein-rich foods with probiotics, which has been a driving factor for sales growth [7] - Initial trends in the UAE market are promising, although it is not yet a major revenue contributor [26] Company Strategy and Development Direction - The company is focused on innovation, with plans to expand its product offerings in response to evolving consumer interests, including lactose-free and probiotic products [15][18] - LifeWay aims to maintain its market-leading position in the kefir category through strategic investments and marketing initiatives [16][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth momentum through 2025, despite macroeconomic pressures such as high prices and interest rates [11][12] - The company believes that health and wellness trends will continue to support its premium product portfolio [15] Other Important Information - Capital spending increased to $6.7 million in 2024, aimed at modernizing manufacturing facilities to support growth [10] - The company has been actively participating in events to raise awareness about gut health and its products, including appearances at South by Southwest and Expo West [22][23] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Financial Performance - Net sales for the three-month period ended March 31, 2025, were $46,091, an increase of $1,457 or 3.3% compared to the same period in 2024[83]. - Gross profit as a percentage of net sales decreased to 24.0% in Q1 2025 from 25.8% in Q1 2024, primarily due to unfavorable milk pricing and increased trade promotions[84]. - Net income for the three months ended March 31, 2025, was $3,540, compared to $2,426 in the same period in 2024, reflecting a net income margin increase from 5.4% to 7.8%[82]. Expenses - Selling expenses increased by $998 to $4,698 in Q1 2025, representing 10.2% of net sales, up from 8.3% in Q1 2024, driven by marketing investments[85]. - General and administrative expenses rose by $492 to $4,628 in Q1 2025, influenced by professional fees related to stockholder actions and an unsolicited purchase proposal[86]. Cash Flow - Net cash used in operating activities was $150 in Q1 2025, a decrease from $1,546 provided in Q1 2024, primarily due to lower cash earnings[93]. - Net cash provided by investing activities was $2,933 in Q1 2025, compared to net cash used of $2,469 in Q1 2024, reflecting proceeds from the sale of an investment[94]. Taxation - The effective tax rate for Q1 2025 was 28.7%, down from 30.8% in Q1 2024, mainly due to changes in non-deductible compensation[87]. Future Outlook - The Company expects the accelerating consumer focus on health and wellness to drive increased demand for its products[80]. Credit Facilities - The Company had $0 outstanding under the Revolving Credit Facility as of March 31, 2025, with $25,000 available for future borrowings[96]. Market Risk - Not applicable for quantitative and qualitative disclosures about market risk[101].

Core Insights - Lifeway Foods, Inc. reported net sales of $46.1 million for Q1 2025, marking a 3.3% increase year-over-year, driven by strong consumer demand for its probiotic products [1][4] - The company achieved its 22nd consecutive quarter of year-over-year sales growth, building on a record-breaking 2024 performance [2][3] Financial Performance - Net sales increased by $1.5 million compared to Q1 2024, primarily due to higher volumes of Lifeway's branded drinkable kefir [4] - Gross profit as a percentage of net sales was 24.0% for Q1 2025, while selling, general, and administrative expenses accounted for 20.2% of net sales [4] - The company reported a net income of $3.5 million, equating to $0.23 per basic and diluted common share for Q1 2025 [5] Strategic Initiatives - Lifeway strategically eliminated a retail relationship in late 2024 to prioritize branded offerings over private label, enhancing margins [2] - The company has expanded its distribution network, securing over 2,000 incremental points of distribution across its product lines in 2025 [3] - Lifeway products are now available in 40 airports nationwide, contributing to a record gross sales week of over $5 million in late April [3] Market Trends - There is an increasing consumer focus on health and wellness, driving demand for protein-rich and probiotic foods, which benefits Lifeway's product offerings [3] - The company anticipates that consumer visits to grocery and club stores will rise as shoppers seek healthier food options amid tightening consumer spending [3]

CHICAGO, May 2, 2025 /PRNewswire/ -- Edward Smolyansky, who together with Ludmila Smolyansky, beneficially own approximately 27% of outstanding shares of Lifeway Foods common stock, today issued the following statement in response to Lifeway's amended 2024 Annual Report and its latest disclosures on executive and director compensation.Apparent Delay of 2025 Annual Meeting of Shareholders On March 13, Edward Smolyansky submitted a full slate of Board nominees for Lifeway's 2025 Annual Meeting. To date, Lifew ...

Company Overview - Lifeway Foods, Inc. is a leading U.S. supplier of kefir and fermented probiotic products, recognized as one of Forbes' Best Small Companies [4] - The company offers a variety of products including drinkable kefir, cheeses, and a ProBugs line for children, with sales across multiple countries [4] Financial Performance - Lifeway achieved gross sales exceeding $5 million for the week ending April 27, 2025, marking a 35% increase compared to the same week in the previous year [1] - The company is set to report its financial results for the first quarter ended March 31, 2025, on May 13, 2025, before market hours [2] Communication and Investor Relations - A pre-recorded conference call and webcast featuring Julie Smolyanksy, Lifeway's President and CEO, will be available on the company's website following the release of the first quarter results [3]

Core Insights - The termination of Amy Feldman, a key executive at Lifeway Foods, is viewed as a significant misstep that undermines the company's strategic vision and employee morale [1][2][3] - Edward Smolyansky and Ludmila Smolyansky, who own approximately 28% of Lifeway's outstanding shares, are advocating for immediate changes in leadership and governance following Feldman's dismissal [1][3] Company Actions and Reactions - Lifeway Foods dismissed Amy Feldman on February 28, 2025, despite her pivotal role in developing the company's sales strategy, which has raised concerns among employees and shareholders [1][2] - The Board recently awarded CEO Julie Smolyansky a substantial cash bonus and stock options, which has sparked controversy, especially as it represents over 94% of the company's net income for 2024 [2][3] - The Smolyanskys have submitted a full slate of Board nominees for the 2025 Annual Meeting, emphasizing the need for leadership change and improved governance [3][4] Demands for Change - The Smolyanskys are calling for a transparent explanation regarding Feldman's termination and whether the Board was involved in the decision [5] - They demand the rescission of the recent share award to CEO Julie Smolyansky, proposing that the equity be redistributed to Lifeway's employees through an incentive plan [5] - There is a call for an end to the current corporate culture perceived as anti-shareholder and anti-employee, which is believed to be detrimental to Lifeway's foundational values [5] - The immediate release of Lifeway's preliminary Q1 2025 financial reports is requested to restore investor confidence and transparency [5]