Earnings Labs

Lifeway Foods, Inc. (LWAY)

Q1 2021 Earnings Call· Mon, May 17, 2021

$28.02

+0.88%

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Transcript

Operator

Operator

Good afternoon. Welcome to Lifeway Foods First Quarter 2021 Earnings Conference Call. On the call with me today is Julie Smolyansky, Chief Executive Officer. By now, everyone should have access to the press release that went out this morning. If you have not received the release, it is available on the Investor Relations portion of Lifeway's website at www.lifewaykefir.com. A recording of this call will be available on the company's website. Before we begin, we would like to remind everyone that the prepared remarks contain forward-looking statements and management may make additional forward-looking statements in response to your questions. The words believe, expect, anticipate and other similar expressions generally identify forward-looking statements. These statements do not guarantee future performance and therefore, undue reliance should not be placed on them. Actual results could differ materially from those projected in any forward-looking statements. Lifeway assumes no obligation to update any forward-looking projections that may be made in today's release or call. All of the forward-looking statements contained herein speak only as of the date of this call. And with that, I would like to turn the call over to Lifeway's Chief Executive Officer, Julie Smolyansky.

Julie Smolyansky

Management

Thank you, John, and good morning to everyone joining us. It is my pleasure to be speaking with you regarding our first quarter 2021 earnings report, and thank you, as always, for your interest in Lifeway Foods. The first quarter of 2021 marked yet another quarter of revenue growth, our sixth in a row and has provided us a strong platform for what we know will be a great year here at Lifeway. I want to start today by thanking our employees for their commitment to take care of our customers throughout these unique times. Looking to the future, we are encouraged by the vaccine rollout and remain optimistic that by year-end, we will be emerging from this pandemic. Despite a volatile environment over the last 18 months, Lifeway has deepened our relationship with our valued retail partners and customers while pivoting to meet the operational and marketing challenges of the current landscape. Our dynamism and agility during this time has served us well, and we continue to pursue and successfully execute on our plan to drive growth and deliver value to our shareholders. Today, I'll review our first quarter 2021 results, which I'm proud to say, deliver our sixth consecutive quarter of year-over-year net sales increases. Net sales were $29.4 million for the quarter ended March 31, 2021, an increase of $4 million or 15.7% versus 2020. This increase was primarily driven by higher volumes of our branded drinkable Kefir, approximately 30% of the increase in sales resulted from the Farmers to Families Food Box program with the United States Department of Agriculture, which began during the middle of the first quarter 2021. The Farmers to Families Food Box program, which began in May of last year, was designed as a temporary relief effort in response to the economic…