Lifeway Shares Fall After Profit Declines on Higher Milk Prices
Dow Jones
Aug 14
Shares of Lifeway Foods fell after the kefir and fermented probiotics company reported a drop in profit, as milk prices increased.
The stock was down 14% to $25.09 in recent trading, but rose 3.6% since the start of the year.
The company said net income fell to $127,000, or 1 cent a share, from $4.25 million, or 28 cents a share, a year earlier.
Sales rose 24% to $66.9 million. Analysts polled by FactSet expected $61.4 million.
Chief Executive Julie Smolyansky said that demand remained robust even as elevated milk prices created the primary margin headwind. She added that the pressure is temporary and expects the pressures to subside as conditions normalize.
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