US cultured dairy products group Lifeway Foods has reported higher half-year profits, although a spike in milk costs and charges from a recent acquisition hit second-quarter earnings.

Net income for the six months to the end of June was up 19.9% at US$3.8m as increased distribution boosted sales. Net sales grew 19% to $47.5m.

However, Lifeway said a 20% year-on-year increase in milk costs in the second quarter, higher selling costs and expenses from the company’s recent acquisition of the Golden Guernsey Dairy plant meant second-quarter earnings were lower. Net income fell by a third to $1.4m. Net sales in the quarter were up 12% at $23.1m.

CEO Julie Smolyansky said the company was “pleased” with its quarterly results.

“We continued to execute on our plan to increase distribution in new and existing retailers,” she said. “In the quarter, we also focused on the integration of our new dairy manufacturing facility and we believe this will help expand our margins and support our future growth opportunities long-term. We look forward to this facility being fully operational at the end of the year.”