Kefir maker Lifeway Foods has posted a 52% jump in fourth quarter sales, which rose to US$7.89m from $5.21m the previous year, driven by new product launches and the acquisition of Helios Nutrition.
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For the full year, sales increased 38% to $27.72m from $20.13m during 2005. Operating income increased 25% to $4.23m and EPS increased to $0.17 per share in 2006, up from $0.15 per share in 2005.
Edward Smolyansky, CFO, commented: “We are extremely pleased with our fourth quarter and full 2006 results. We absorbed the $2.17m in sales from the Helios acquisition from August 2006 to the end of the year, but also absorbed about $2.17m in costs as the Helios business model was not nearly as profitable as Lifeway’s. However, we have moved about 25% of the Helios production to our main facility in Illinois, and as 2007 continues, we expect to be able to further consolidate out some expenses.”
Looking to the coming year, Lifeway said that it plans to increase its marketing and advertising spend in an effort to drive further sales growth – “this will be a key factor in our future sales growth and market penetration,” Smolyansky said.
Julie Smolyansky, CEO, added: “2006 was another great year for Lifeway. Sales eclipsed our expectations; we introduced many new and innovative products including ProBugs(TM), and acquired our top competitor. All of these developments have further strengthened our position as the top supplier of Kefir, which is one of the fastest growing products in the booming probiotic dairy market.”
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