US maker of cultured dairy products Lifeway Foods has booked increased income and sales for 2016 as a result of a “favourable sales volume and lower level of trade promotion” compared to the previous year.
Net income or the year ended 31 December was US$3.5m, or $0.22 per share, compared to $2m, or $0.12 per share, in fiscal 2015. Net sales increased by 4.5% to $123.9m. Operating profit increased to $6m from $4.4m previously.
Gross profit increased $5.1m to $35m compared to the previous year. Lifeway said gross profit as a percentage of net sales increased 310 basis points to 28.3% from 25.2% in the prior year “driven by lower trade promotion and favourable milk costs”. Milk costs were approximately 7% lower in 2016 compared to 2015.
The bulk of Lifeway’s sales are generated domestically but the company is building a business in international markets. The group said its products are available “on a small, but growing basis” in Canada, Latin America and the UK.