US kefir maker Lifeway Foods has doubled its earnings in the first quarter of the year.
Earnings in the three months to the end of March amounted to US$2.4m. This compared to a net profit of $1.1m in the comparable period last year.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The company, which has also announced a $7.4m acquisition of the Golden Guernsey Dairy plant in Waukesha, recorded operating profit of $3.7m versus $1.9m last year.
Net sales climbed 26% to $24.4m. This was primarily due to increased sales and awareness of the company’s flagship line, Kefir, as well as its ProBugs Organic Kefir for kids and BioKefir.
Looking ahead, CEO Julie Smolyansky said the company is “prudently” targeting new markets like the UK and remains “optimistic” about its future growth long-term both domestically and internationally.
The acquisition of the Golden Guernsey plant will provide Lifeway with additional manufacturing capacity for its kefir-based business, the company said.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataAdding the 170,000sq ft plant to Lifeway’s existing 50,000sq ft facility in Morton Grove, IL, will more than quadruple the company’s production capacity.
The plant was shuttered in January following a bankruptcy filing, leaving 112 employees without jobs. Lifeway plans to reopen the plant this summer and rehire a portion of the workforce.
Click here to view the full earnings release.
