Lifeway Foods, the manufacturer of dairy drink kefir, saw a drop in operating profit for the second quarter as a result of rising commodity costs.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
For the period to 30 June 2008, operating income was US$1.54m, down from $1.76m from the previous year.
Gross profit remained virtually unchanged at $3.87m from $3.82m from the same period in 2007.
Net Income was down to $911.7m from $1.3bn for the second quarter 2008. Earnings per share were $0.05.
Sales increased 19% to around $11.5m from $9.7m during the same period a year ago, driven by a strong sales increase in the company’s kefir and ProBugs drinks.
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 GlobalData“Our margins continue to improve as the cost of our largest raw material, milk, continues to decrease from its record highs set in the fall of 2007,” said Edward Smolyansky, CFO. “We intend on using the extra savings derived from these lower raw material prices to increase our marketing and promotional activities and to continue to educate the public as to the benefits of our Kefir.”
Selling related expenses in the second quarter 2008 increased 26% compared to the same period a year ago and the company said it expect to continue to spend a higher percentage of sales on marketing in the second half of 2008.
