Profits have fallen at Lifeway Foods for the first nine months of the year on the back of higher expenses and flat sales.
The US kefir maker posted a net income of US$1.6m for the period ended 30 September compared with $2m a year earlier. Operating income fell to $3.5m from $4.3m. The company noted higher general and administrative costs amid a higher salary bill, expenses linked to its Wisconsin facility and charges linked to a delayed SEC filing.
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Sales for the period inched up 0.3% to $89m.
For the three-month period, Lifeway's sales were hit by "significantly higher customer promotional allowances". Sales fell 2% to $29.6m.
Net income decreased to $0.9m from $1m. Operating income fell to $2.1m from $2.2m, again on the back of higher general and admin expenses.
"This year we have made good progress on our strategic initiatives as evidenced by our solid results for the third quarter," said CEO Julie Smolyansky. "We are committed to providing the highest quality kefir products and our performance demonstrates the strong and continued demand for Lifeway Kefir. Our team is diligently focused on creating innovative products, expanding distribution across new and existing retail channels, and growing Lifeway's brand awareness. We are confident in our ability to develop our business into a global, healthy food products company as we execute on the tremendous opportunities ahead of us."
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