US cultured dairy products maker Lifeway Foods has booked a fall in first-quarter profits on the back of higher costs, despite sales increasing in the period.
Net income for the three months to 31 March fell to US$648,000 from $654,000. Operating income declined to $1.1m from $1.4m a year earlier.
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Lifeway Foods recorded higher operating expenses including increased general and admin costs in the period which put pressure on profits.
Sales, however, grew 10% to $32.6m.
“We are pleased to announce an encouraging start to 2016 in which we achieved double-digit top-line revenue growth and a sequential increase in profitability,” said Julie Smolyansky, CEO of Lifeway Foods. “Our solid first quarter results demonstrate the success of our strategic initiatives. In addition, increased distribution and brand awareness of our probiotic and functional dairy health food products drove our improved operational and financial performance. This positive momentum has us well-positioned for growth and we are confident in our ability to increase value for our shareholders.”
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By GlobalData
