Lifeway Foods Slips To Loss On Poor Margins; Details Strong Sales Outlook

(RTTNews) - Lifeway Foods Inc (LWAY), a supplier of cultured dairy products known as kefir, Monday reported fourth-quarter net loss of $0.5 million or $0.03 per share. This compares with net income of $1.1 million or $0.07 per share in the same period last year.

On average, three analysts polled by Thomson Reuters estimated earnings of $0.08 per share for the quarter. Analysts' estimates typically exclude special items.

Results for the recent quarter included a $0.3 million pre-tax loss on disposition of assets due to the closing of a Starfruit store location.

Revenues for the quarter were up 26% at $26.3 million compared with $20.9 million in the prior year. Analysts estimated revenues of $23.4 million.

Results were also impacted by gross margin that declined to 18% from 29% last year, due to the increased cost of conventional milk, a key raw material.

Looking ahead, the company expects a 24% increase in sales for the first quarter, while analysts project growth of 7.1%.