Core Insights - Lifeway Foods, Inc. is expanding the distribution of its ProBugs Organic Kefir for kids to over 250 Harris Teeter retail stores, featuring flavors like Strawnana and Goo-berry in single-serve pouches [1][3] - The ProBugs kefir is made with organic whole milk and contains 12 live and active probiotic cultures, designed for children with a focus on convenience and fun [2][3] - The U.S. kids and infant probiotic market is projected to reach $370.89 million by 2032, growing at a CAGR of 9.1% [3] Company Overview - Lifeway Foods, Inc. is recognized as a leading supplier of kefir and fermented probiotic products, also producing a variety of cheeses and the ProBugs line for kids [5] - The company has a presence in multiple countries, including the U.S., Mexico, Ireland, South Africa, UAE, and France [5] Retail Partnership - Harris Teeter, a subsidiary of The Kroger Co., has been in operation for over 60 years and employs 36,000 associates across more than 250 stores [6]

Core Viewpoint - Founding Shareholders of Lifeway Foods, Inc. are urging the board to establish an independent special committee to evaluate a buyout proposal from Danone, following the board's rejection of Danone's offer of $27 per share in cash [1][2][4]. Group 1: Proposal and Rejection - Danone North America proposed to acquire all outstanding shares of Lifeway that it does not already own for $27 per share in cash, which was rejected by Lifeway's board [2]. - Lifeway's CEO and her spouse have publicly stated their opposition to any sale of the company, indicating a personal conflict regarding the potential transaction [2][4]. Group 2: Legal and Governance Issues - Lifeway is threatening to file a lawsuit against Danone to invalidate a stockholders agreement that restricts stock grants to the CEO and gives Danone a right of first refusal on certain stock transfers [3]. - The Founding Shareholders are calling for the board to preclude Jason Burdeen from any involvement in evaluating Danone's proposal due to his perceived partiality and credibility issues highlighted by a federal judge [6][7]. Group 3: Transparency and Accountability - The Founding Shareholders demand that Lifeway disclose any valuation analysis provided by Kroll, the financial advisor, to understand the board's rationale for rejecting Danone's offer [9][10]. - There is a call for Lifeway to allow the dissemination of unredacted deposition transcripts from lawsuits filed against the Founding Shareholders, to ensure transparency and accountability in the board's actions [10]. Group 4: Management and Strategic Direction - Concerns are raised about the management's ability to prioritize shareholder interests, with criticism directed at the CEO for focusing on launching new products rather than addressing shareholder value [11]. - The Founding Shareholders express skepticism about the management's strategy for Lifeway, especially in light of recent stock sales by executive management [11].

Core Insights - Lifeway Foods, Inc. has launched a new functional beverage called Probiotic Smoothie + Collagen, made with kefir cultures, aimed at supporting skin health, the immune system, and the microbiome [1][2][3] - The new product line includes four flavors: Matcha Latte, Berry Blast, Tropical Fruit, and Plain, each containing 5 grams of collagen per serving and is lactose-free, catering to the growing consumer demand for lactose-free dairy products [1][2] Product Details - The Probiotic Smoothie + Collagen features 12 live and active cultures, providing 25-30 billion beneficial CFUs (Colony Forming Units) per serving, which may enhance skin hydration, elasticity, smoothness, and joint health [2] - The beverage is designed to support the gut-skin axis, highlighting the interconnectedness of gut and skin health [2] Market Context - The launch is part of Lifeway's New Year New You Campaign for 2025, with products expected to begin shipping in December and available in select independent and specialty stores by the end of the year [3] - The product development has been in progress since 2021, indicating a strategic approach to market readiness [3] Company Background - Lifeway Foods is recognized as a leading supplier of kefir and fermented probiotic products in the U.S., with a diverse product range including drinkable kefir and cheeses [5] - The company has a presence in multiple countries, including the U.S., Mexico, Ireland, South Africa, the UAE, and France, showcasing its international reach [5]

Core Viewpoint - Lifeway Foods' Board of Directors has rejected Danone North America's unsolicited acquisition proposal of $27.00 per share, citing that it undervalues the company and is not in the best interests of its shareholders and stakeholders [1][2]. Company Performance - Lifeway has achieved its 20th consecutive quarter of growth, with double-digit year-over-year revenue growth and improved profit margins reported in Q3 2024 [3]. - Over the past five years, Lifeway has delivered total shareholder returns of 788%, and 270% over the past three years, significantly outperforming high-growth food and beverage peers and the S&P 500 [3]. Strategic Focus - The company remains committed to executing its strategic plan to expand kefir distribution and enter adjacent product categories [3][4]. - Lifeway aims to unlock additional shareholder value and is dedicated to acting in the best interests of all shareholders [4]. Advisory Support - Evercore is serving as the financial advisor, while Sidley Austin LLP is providing legal counsel to Lifeway [4].

Core Insights - Lifeway Foods, Inc. (LWAY) reported third-quarter 2024 results with net sales increasing year over year but falling short of the Zacks Consensus Estimate, while the bottom line declined year over year and also missed the consensus mark [1][3] Financial Performance - Lifeway Foods achieved earnings of 19 cents per share, missing the Zacks Consensus Estimate of 27 cents, and decreased from 23 cents reported in the same quarter last year [3] - The company reported consolidated net sales of $46.1 million, missing the Zacks Consensus Estimate of $52 million, but representing a 12.7% increase from $40.9 million in the year-ago period, driven by increased volumes of branded drinkable kefir [4] - Gross profit increased 6.5% year over year to $11.9 million, although gross margin contracted by 150 basis points to 25.7% compared to 27.2% in the third quarter of fiscal 2023, primarily due to unfavorable milk pricing [5] Expense Analysis - Selling expenses rose 38% year over year to $4 million, with selling expenses as a percentage of net sales increasing by 150 basis points to 8.6% due to continued marketing investments [6] - General and administrative expenses increased 15.5% year over year to $3.6 million, with these expenses as a percentage of net sales rising by 20 basis points to 7.7% [6] Financial Health - Lifeway Foods ended the quarter with cash and cash equivalents of $20.6 million and total shareholders' equity of $71.5 million, with net cash provided by operating activities amounting to $15.5 million for the nine months ended September 30, 2024 [7] Future Outlook - Lifeway Foods plans to expand its ProBugs product distribution to approximately 260 stores with a regional retailer by December 2024 and anticipates placing its Farmer Cheese in about 1,400 stores with a major national retailer by the end of the first quarter of 2025 [8] Market Performance - The stock has gained 19% in the past three months, outperforming the industry, which saw a decline of 17.1% [9]

Core Viewpoint - Lifeway Foods, Inc. has received a revised unsolicited proposal from Danone North America PBC to acquire all outstanding shares of Lifeway it does not already own for $27.00 per share in cash, following the rejection of an initial proposal of $25.00 per share due to undervaluation concerns [1][2]. Group 1: Proposal Details - Danone currently owns approximately 23.3% of Lifeway's outstanding common stock [1]. - The initial proposal of $25.00 per share was rejected by Lifeway's Board of Directors as it was deemed to substantially undervalue the company [2]. - The revised proposal of $27.00 per share is under careful review by Lifeway's Board, in consultation with independent advisors, to determine the best course of action [3]. Group 2: Shareholder Actions - Lifeway shareholders are advised that no action is required at this time regarding the proposals [4]. Group 3: Company Overview - Lifeway Foods, Inc. is recognized as a leading supplier of kefir and fermented probiotic products in the U.S., with a product range that includes drinkable kefir and various cheeses [5]. - The company's products are distributed across multiple countries, including the U.S., Mexico, Ireland, South Africa, UAE, and France [5].

Lifeway Foods, Inc. (NASDAQ:LWAY) Q3 2024 Earnings Conference Call November 14, 2024 9:00 AM ET Company Participants Julie Smolyansky - President and Chief Executive Officer Conference Call Participants Operator Good morning. Welcome to Lifeway Foods' Third Quarter 2024 Conference Call. On the call with me today is, Julie Smolyansky, President and 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 ...

Lifeway Foods (LWAY) came out with quarterly earnings of $0.19 per share, missing the Zacks Consensus Estimate of $0.27 per share. This compares to earnings of $0.23 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -29.63%. A quarter ago, it was expected that this dairy and cheese company would post earnings of $0.17 per share when it actually produced earnings of $0.25, delivering a surprise of 47.06%.Over the last four quarte ...

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, No Par Value LWAY NASDAQ Global Market Preferred Stock Purchase Rights n/a NASDAQ Global Market UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2024 ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT O ...

Year-to-date net sales of $139.9 million; up 18.5% year-over-yearHeightened interest in probiotic foods with bioavailable nutrients drives volume growth of Lifeway Kefir and Farmer Cheese20th consecutive quarter of year-over-year growthYear-to-date gross profit margin increased to 26.2%MORTON GROVE, Ill., Nov. 14, 2024 /PRNewswire/ -- Lifeway Foods, Inc. (Nasdaq: LWAY) ("Lifeway" or "the Company"), the leading U.S. supplier of kefir and fermented probiotic products to support the microbiome, today reported ...