US cultured dairy products group Lifeway Foods has reported “record” annual sales but saw the cost of milk eat into its profits.
Lifeway’s net sales jumped 20% in 2013, reaching US$97.5m. However, the company’s gross profit margin slipped from 33% to 28%. The firm pointed to the cost of conventional and organic milk for the lower margins.
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Its operating income dropped 9% to $8m, while its net income was down 10.7% at $5m.
CEO Julie Smolyansky was upbeat about Lifeway’s prospects in 2014. “We remain committed to wellness and continue to see positive business trends for Lifeway. We are already off to a strong start for 2014 and expect a 24% increase in net sales for the first quarter from the prior year,” she said. “I am very excited for our future opportunities and believe we are well positioned for long-term sustainable growth that will allow us to increase value for shareholders.”
Click here for a just the answer interview with Smolyansky, held at the Anuga trade fair in Germany in October.
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By GlobalData
