Benzinga | Aug 16, 2021 04:32PM EDT

Lifeway Foods Records 16.6% Growth In Q2 Sales

* Lifeway Foods Inc (NASDAQ:LWAY) reported second-quarter FY21 sales growth of 16.6% year-on-year, to $29.2 million primarily driven by higher volumes of its branded drinkable kefir.

* Gross profit rose 10.8% Y/Y to $7.7 million, and the gross margin declined 140 basis points Y/Y to 26.3% due to the unfavorable impact of milk pricing.

* Operating expense fell 5.6% Y/Y to $5.2 million.

* The operating margin was 8.6%, and operating income for the quarter rose 73.4% to $2.5 million.

* The company held $10.4 million in cash and equivalents as of June 30, 2021.

* EPS of $0.10 increased 66.7% Y/Y.

* "Throughout the quarter, we remained focused on advertising and customer acquisition strategies with elevated digital engagement and marketing programs, including our first Spanish-language campaign," said CEO Julie Smolyansky.

* Price Action: LWAY shares closed higher by 2.05% at $5.96 on Monday.