Earnings Labs

Lifeway Foods, Inc. (LWAY)

Q3 2021 Earnings Call· Sun, Nov 14, 2021

$28.02

+0.88%

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Transcript

Unknown Executive

Management

Good afternoon. Welcome to Lifeway Foods' Third 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.lifewayfoods.com. A recording of this call will be available on the company's website. Before we begin, we'd 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 today. First, as always, thank you for your interest in Lifeway Foods. I am pleased to be speaking with you today regarding our third quarter 2021 earnings results. The third quarter was yet another strong period for Lifeway, marking our eighth consecutive quarter of year-over-year revenue growth and a firm building block for momentum as we head towards 2022. Before diving into the results, I'd first like to express my gratitude to all of our employees for their hard work and dedication to efficiently maintaining our operations and keeping our customers happy throughout these unique times. As we look ahead, I'm excited for the trajectory we are on as a business and very optimistic that we will continue to deliver results as the pandemic wanes and we enter, hopefully, a more normal 2022. Throughout 2021, we have successfully enhanced and expanded our relationships with our retail partners and customers. In doing so, we have continued to execute on our Lifeway 2.0 strategy and remain on track in our primary goal of driving growth and delivering value to our shareholders. Today, I'll review our third quarter 2021 results, which I'm happy to reiterate marked our eighth consecutive quarter of year-over-year net sales growth. Net sales were $29.6 million for the period ended September 30, 2021, an increase of $3.5 million or 13.5% versus the third quarter in 2020. This increase was primarily driven by higher volumes of our branded kefir drinks and to a lesser extent, the contribution for the completed acquisition of GlenOaks Farms towards the end of August. The consistent increases in kefir volume illustrate the traction that we're gaining from our customer acquisition strategies, utilizing elevated digital engagement and enhanced marketing campaign. In addition, for the third quarter,…