Lifeway Foods booked a drop in earnings as higher costs offset a near 30% rise in sales during the third quarter.
The US kefir maker said operating income dropped to US$1.8m during the period to 30 September, from $2.2m during the same period in 2013. The company was hit by a 20% year-on-year increase in the cost of milk and higher SG&A costs, which it attributed to costs associated with its purchase of the Golden Guernsey dairy plant.
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Net profit was also dented by a higher tax rate, which sat at 43% compared to 29% in the same period last year. Net income totalled $1m, down from $1.7m as a consequence.
The company did, however, see a strong improvement in sales trends in the period, with year on year growth of 27%. Lifeway sales increased by $6.3m to $30.1m, the company revealed.
