Lifeway Foods(LWAY)2025-05-13 13:00Financial Performance - Net sales for the three-month period ended March 31, 2025, were 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 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 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 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 1,546 provided in Q1 2024, primarily due to lower cash earnings[93]. - Net cash provided by investing activities was 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 25,000 available for future borrowings[96]. Market Risk - Not applicable for quantitative and qualitative disclosures about market risk[101].