NASDAQ:LWAY Lifeway Foods Q1 2024 Earnings Report $23.45 +0.05 (+0.22%) As of 03:04 PM Eastern This is a fair market value price provided by Polygon.io. Learn more. Earnings HistoryForecast Lifeway Foods EPS ResultsActual EPS$0.16Consensus EPS $0.24Beat/MissMissed by -$0.08One Year Ago EPS$0.06Lifeway Foods Revenue ResultsActual Revenue$44.63 millionExpected Revenue$43.00 millionBeat/MissBeat by +$1.63 millionYoY Revenue GrowthN/ALifeway Foods Announcement DetailsQuarterQ1 2024Date5/14/2024TimeBefore Market OpensConference Call DateTuesday, May 14, 2024Conference Call Time8:00AM ETUpcoming EarningsLifeway Foods' Q1 2025 earnings is scheduled for Tuesday, May 13, 2025, with a conference call scheduled on Wednesday, May 14, 2025 at 9:30 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfilePowered by Lifeway Foods Q1 2024 Earnings Call TranscriptProvided by QuartrMay 14, 2024 ShareLink copied to clipboard.There are 2 speakers on the call. Operator00:00:00Good morning. Welcome to Lifeways Foods' First Quarter 2024 Conference Call. On the call with me today is Julie Smolenski, 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 on the Investor Relations portion of Lifeway's website at www.lifewayfoods.com. Operator00:00:25A 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. 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. Operator00:00:56LifeWay 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'd like to turn the call over to LifeWay's Chief Executive Officer, Julie Smolensky. Speaker 100:01:14Thank you, John, and good morning to everyone joining us today. As always, we greatly appreciate your interest in LifeWay Foods. I'm excited to be speaking with you today and thrilled to report that the momentum from our record breaking fiscal year 2023 has slowed smoothly into yet another strong quarter to start 2024. For the Q4 in a row, we have broken the company record for quarterly net sales, all while consistently delivering improved profitability metrics. Our consistent growth and the excellent level of service we are providing to our valued customers and clients would not be possible without the effort and execution of our entire Lifeway team, and we could not be more pleased with their efforts. Speaker 100:01:58With that said, I will now review our results for the 1st quarter of 2024. Net sales were $44,600,000 for the period ended March 31, 2024, which is yet another record high quarter for Lifeway and an increase of $6,700,000 or 17.8 percent compared to the Q1 in 2023. The net sales growth was primarily driven by higher volumes of our branded drinkable kefir. After a year of consistent volume growth in 2023, we're excited to continue the trend in the Q1. This is further evidence that our strategic sales and marketing investments in our core items continue to accelerate velocities, grow awareness and win new consumers who are seeking out premium healthy products at great values. Speaker 100:02:49This record quarter also marked our 18th consecutive quarter of year over year net revenue growth. Consumers continue to face well documented macro headwinds, including inflation and high interest rates. And with that comes cautious spending. However, we continue to see strengthening in results, demonstrating both the steadfast loyalty and the growth of our core customer base, who rely on our high quality, better for you products. Given our record breaking 2023, which saw sequential growth in each quarter, our year over year lapse will continue to get more difficult, yet we aspire to continue clearing the high bars we have set for ourselves. Speaker 100:03:32We reported a gross profit margin of 25.8 percent for the period ended March 31, 2024, increasing 410 basis points when compared to 21.7% in the Q1 of 2023. This significant margin expansion was primarily due to higher volumes of Lifeway branded products and to a lesser extent favorable transportation costs. Following a year of notable margin expansion, we are pleased to see margins improve on a year over year basis once again. Our margins remain a top priority for us and our team continues to proactively manage the supply and transportation of the materials used to make, package and deliver our products to our customers. This proactive discipline has allowed us to consistently match the increasing demand and we believe as the shipment volumes of our Lifeway branded products rose, we will continue to become more efficient. Speaker 100:04:27Now to our expenses. Selling, general and administrative expenses increased $1,200,000 to $7,800,000 for the period ended March 31, 2024, compared to $6,700,000 in the Q1 of 2023. While our net spending increased, SG and A as a percentage of net sales remained in line with the first quarter of 2023. Selling expenses specifically increased marginally, but as a percentage of net sales, they decreased to 8.3% compared to 9.3% in the Q1 of 2023. Given our strong net sales increase, this demonstrates the increasing returns we are generating on our strategic sales and marketing investments. Speaker 100:05:10Our net income during the period ended March 31, 2024 was $2,400,000 reflecting EPS of $0.17 per basic and $0.16 per diluted common share compared to the net income of $800,000 or $0.06 per basic and diluted common share during the Q1 of 2023, nearly tripling on our year over year basis. This demonstrates that our top line and margin improvements continue to flow through well to the bottom line. Capital spending increased approximately $700,000 to $2,500,000 during the period ended March 31, 2024 compared to the Q1 of 2023. The increase in cash used reflects our planned increases during 2024 compared to 2023 to support our continued growth. Our capital spending is focused on 3 core areas: growth capital, cost reduction and facility improvements. Speaker 100:06:07Growth capital spending supports new product innovation and enhancements. Cost reduction and facility improvements support manufacturing efficiency, safety and productivity. Our CapEx spending is efficient and we generate a strong return when installing additional tanks as we leverage existing infrastructure to scale the business. This was another remarkable quarter for Lifeways, delivering record high top line results yet again, accompanied by our notable improvements in our profitability measures. Our growing customer base continues to prove resilient to macro pressures and demonstrate their loyalty to our core products as seen through our accelerating velocity. Speaker 100:06:45This is a testament to the staying power of modern health and wellness trends, which should remain a tailwind for Likeway as today's consumer continues to focus on high quality, better for you foods that are affordable. Our entire premium product portfolio led by our flagship keeper is nutritious, delicious and reasonably priced, which is why consumers come back for more and are eagerly awaiting new flavors and line extensions. Our kefir products are tart and tangy and provide customers with probiotics, vitamin D and protein to help support their gut health, immunity and mental well-being. The probiotics in kefir support a healthy microbiome and approximately 80% of immune defenses come from the gut. Probiotic products such as kefir are the focus Operator00:07:36of Speaker 100:07:38to 90% of the body's serotonin comes from gut cells and the gut brain access, which links emotional and cognitive centers of the brain with our intestinal function, plays a major role in happiness and well-being. A recent study published by DMC Medicine also suggests that probiotics in dairy kefir show potential promise in improving the gut health of ICU patients and the small study protocol in the U. K. Examined the effects and potential benefits on children with ADHD who consume kefir. It's an exciting time for microbiome research and we applaud the recent efforts to uncover new and amazing ways that fermented and cultured foods can positively impact our health. Speaker 100:08:20As you would expect, this record breaking quarter was spearheaded by the core driver of our business, our industry leading drinkable, best in class, lightweight kefir. Net sales of our drinkable kefir increased 22.6% to $36,500,000 for the period ended March 31, 2024, compared to the Q1 in 2023. We continue to dominate the U. S. Kefir market, an industry that we have built. Speaker 100:08:49And the majority of our time and investments will be dedicated to our core product through both strategic marketing and incremental distribution opportunities to drive brand exposure and capture a greater share of today's health focused consumers and the expanding global kefir market. While selling your branded drinkable kefir is our primary focus and exactly what we do best, we also continuously evaluate trends within the probiotic market and health food space to improve and diversify the suite of products we offer to satisfy our consumers' evolving preferences. Within Kiefer, these insights lead to numerous product innovations, including our guava, low fat kefir and our organic home of products, which continue to gain popularity and our organic grass fed keeper flavors that have begun to attract consumers within the growing grass fed dairy market. In addition to our within the Kiefer category, we are strategically marketing and have invested behind Lifeway Farmer Cheese to capitalize on the growing consumer interest in soft cheese products. Our Farmer Cheese has been a cult favorite ever since its introduction, selling strongly relative to distribution in specialty stores nationwide. Speaker 100:10:01It is also a logical alternative to blended cottage cheese recipes that continue to buzz through social media. It has the smooth blended texture that consumers are looking for while being a much healthier ingredient for full protein and probiotics. Our farmer cheese also has no added salt, which is which allows it to complement for a far more diverse set of flavors. It is important to note that while we are consistently assessing trends and growth opportunities, we only enter a new product category if we view the product or innovation as sustainable and profitable endeavor. For example, we've sold farmer cheese for years at small yet profitable measures, which gives us confidence to strategically market and invest behind it today to match heightened demand within the space. Speaker 100:10:49One last note on our Farmers Cheese. In April, we're excited to announce that it was named as a winner in the Good Housekeeping 2024 Best Snack Awards. Congratulations. I'll now touch on some marketing and advertising updates. We had a great brand experience at Coachella last month. Speaker 100:11:06Our products were featured at the Kardashians' Camp Poosh activation with Air 1 receiving coveted influencer impressions. We look forward to a packed summer with participation at music festivals, yoga events and more. We enjoy these in person experiences as they allow us to connect with our consumers on a deeper level during their wellness journeys. As part of our efforts to create a deeper connection with customers, I recently appeared on NBC's California Live to talk about celebrating Mother's Day with probiotic Lifeway products, highlighting their versatility in breakfast and brunch recipes. We remain hyper focused on marketing that moves units. Speaker 100:11:46As we mentioned last quarter, we ran a large in store promotion across many retailers, creating temporary refrigerated spaces showcasing Lifeway branded products and placing them at high traffic end caps. This promotion was successful and we plan to initiate another similar campaign in the coming months. We continue to deepen relationships with our retailers and in store partners with the goal of making sure Lifeway products appear at interruptive moments within the store to drive trial, capture new customers who don't typically shop in our section and boost retention rates. We are also committed to our e commerce strategy. We are investing in targeted advertising on our retail partner sites and general e commerce platforms such as Instacart with the same goal as before, to drive trial and loyalty amongst our growing consumer base. Speaker 100:12:36These e commerce efforts are supported by our advertising and search display and social. We continue to partner with social media influencers, including celebrities, chefs and nutrition experts with notable following. Through them, we deliver widespread advertising aimed at educating consumers on our healthy products and the various recipes they can be used in. We have an in house ambassador program that we augment with our additional influencer agency campaigns to generate brand and category awareness. We then leverage our internal creative marketing team to drive demand for specific items that best match each audience profile. Speaker 100:13:16Our nimble and efficient marketing strategy allows us to connect customers with likely products they will enjoy the most, while also keeping our advertising spend in check. Now, I'll touch on some distribution updates. We recently gained limited rotation for our twin pack of 32 ounce keeper at 2 major club stores. This is a trial basis, but with strong sell through, we could attain additional periodic rotations, which could eventually lead to an everyday placement. We are excited about our pipeline of opportunities and the continued engagement from large additional retailer locations. Speaker 100:13:52As we mentioned last quarter, we have recently gained incremental placements for Lifeway products at Publix, Galvin, Cub, Erewhon and Kroger. We are maintaining our strong relationships with key partners and are consistently seeking out distribution opportunities across a variety of channels that make sense for each of our offerings with a focus on our flagship Lifeway Drinkables Kiefer. With that, I'd like to thank you all for joining us today. The Q1 was an incredible start to 2024 as we eclipse our quarterly sales record once again, while delivering vastly profitability measures. I am confident that we have the right team in place to carry our strong momentum and growth throughout the year. Speaker 100:14:36And I am excited to continue delivering on our mission to bring best in class probiotic and nutritious foods to our growing base of health conscious consumers. And on a personal note, May 4 marked what would have been Michael Smolansky, my father and Lifeway Foods' founder's 77th birthday and in the coming weeks on June 9 will mark 22 years since his sudden passing and my 22nd year as Lifeway's CEO. Michael arrived to the United States as a Soviet refugee in 1976 with $116 no English language and a young family with an unwavering pursuit of the American dream and entrepreneurial aspiration. Michael was obsessed with the microbiome and the science and health benefits of Kiefer. He recommended Kiefer to everyone he met and intuitively knew it could heal the body inside and out, and he regularly quoted research findings of Doctor. Speaker 100:15:32Eli Metchnikoff, the godfather of immunity. Michael dreamed of a time when more people recognize the health benefits of Kiefer and a time when Lifeway Kiefer was available in every refrigerator in the United States. And every day, the team at Lifeway works to realize that dream. I know with certainty, Michael would be proud and in awe of all that LifeWay has accomplished. And I too am proud of my leadership and perseverance, especially during the many challenging times over the last 22 years. Speaker 100:16:04It is my privilege and honor to be at the helm of Lifeways. Together, we have built something truly special and I'm confident that our best days are still ahead of us. With your continued support and dedication and passion, there is no limit to what we can achieve. We look forward to updating you on our progress during our Q2 call in August. We hope everyone has a fun, safe and memorable summer and I hope you have a nice day. Speaker 100:16:30Thank you.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallLifeway Foods Q1 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsPress Release(8-K)Quarterly report(10-Q) Lifeway Foods Earnings HeadlinesMajor Stock Sale by Lifeway Foods Insider!April 21 at 10:13 PM | tipranks.comMajor Stakeholder Sells Lifeway Foods Stock in Significant TransactionApril 16, 2025 | tipranks.comM.A.G.A. is Finished – This Could be even BetterYou’ve no doubt heard Trump’s rally cry: Make America Great Again. But recently the President made a big change. Make America Wealthy Again (M.A.W.A).April 24, 2025 | Paradigm Press (Ad)Lifeway Foods Stock Sale: Insider Sells Thousands of Shares!April 14, 2025 | tipranks.comLifeway Foods shareholders denouncing firing of Amy FeldmanApril 9, 2025 | markets.businessinsider.comEdward Smolyansky Denounces Firing at Lifeway Foods (NASDAQ: LWAY), Urges Board to Return Equity to EmployeesApril 8, 2025 | prnewswire.comSee More Lifeway Foods Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Lifeway Foods? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Lifeway Foods and other key companies, straight to your email. Email Address About Lifeway FoodsLifeway Foods (NASDAQ:LWAY) produces and markets probiotic-based products in the United States and internationally. Its primary product is drinkable kefir, a cultured dairy product in various organic and non-organic sizes, flavors, and types. The company offers European-style soft cheeses; cream and other products; ProBugs, a line of kefir products designed for children; drinkable yogurt; and fresh made butter and sour cream. It sells its products under the Lifeway, GlenOaks Farms, and Fresh Made brand names, as well as under private labels on behalf of customers primarily through direct sales force, brokers, and distributors. Lifeway Foods, Inc. was incorporated in 1986 and is based in Morton Grove, Illinois.View Lifeway Foods ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Seismic Shift at Intel: Massive Layoffs Precede Crucial EarningsRocket Lab Lands New Contract, Builds Momentum Ahead of EarningsAmazon's Earnings Could Fuel a Rapid Breakout Tesla Earnings Miss, But Musk Refocuses and Bulls ReactQualcomm’s Range Narrows Ahead of Earnings as Bulls Step InWhy It May Be Time to Buy CrowdStrike Stock Heading Into EarningsCan IBM’s Q1 Earnings Spark a Breakout for the Stock? 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There are 2 speakers on the call. Operator00:00:00Good morning. Welcome to Lifeways Foods' First Quarter 2024 Conference Call. On the call with me today is Julie Smolenski, 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 on the Investor Relations portion of Lifeway's website at www.lifewayfoods.com. Operator00:00:25A 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. 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. Operator00:00:56LifeWay 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'd like to turn the call over to LifeWay's Chief Executive Officer, Julie Smolensky. Speaker 100:01:14Thank you, John, and good morning to everyone joining us today. As always, we greatly appreciate your interest in LifeWay Foods. I'm excited to be speaking with you today and thrilled to report that the momentum from our record breaking fiscal year 2023 has slowed smoothly into yet another strong quarter to start 2024. For the Q4 in a row, we have broken the company record for quarterly net sales, all while consistently delivering improved profitability metrics. Our consistent growth and the excellent level of service we are providing to our valued customers and clients would not be possible without the effort and execution of our entire Lifeway team, and we could not be more pleased with their efforts. Speaker 100:01:58With that said, I will now review our results for the 1st quarter of 2024. Net sales were $44,600,000 for the period ended March 31, 2024, which is yet another record high quarter for Lifeway and an increase of $6,700,000 or 17.8 percent compared to the Q1 in 2023. The net sales growth was primarily driven by higher volumes of our branded drinkable kefir. After a year of consistent volume growth in 2023, we're excited to continue the trend in the Q1. This is further evidence that our strategic sales and marketing investments in our core items continue to accelerate velocities, grow awareness and win new consumers who are seeking out premium healthy products at great values. Speaker 100:02:49This record quarter also marked our 18th consecutive quarter of year over year net revenue growth. Consumers continue to face well documented macro headwinds, including inflation and high interest rates. And with that comes cautious spending. However, we continue to see strengthening in results, demonstrating both the steadfast loyalty and the growth of our core customer base, who rely on our high quality, better for you products. Given our record breaking 2023, which saw sequential growth in each quarter, our year over year lapse will continue to get more difficult, yet we aspire to continue clearing the high bars we have set for ourselves. Speaker 100:03:32We reported a gross profit margin of 25.8 percent for the period ended March 31, 2024, increasing 410 basis points when compared to 21.7% in the Q1 of 2023. This significant margin expansion was primarily due to higher volumes of Lifeway branded products and to a lesser extent favorable transportation costs. Following a year of notable margin expansion, we are pleased to see margins improve on a year over year basis once again. Our margins remain a top priority for us and our team continues to proactively manage the supply and transportation of the materials used to make, package and deliver our products to our customers. This proactive discipline has allowed us to consistently match the increasing demand and we believe as the shipment volumes of our Lifeway branded products rose, we will continue to become more efficient. Speaker 100:04:27Now to our expenses. Selling, general and administrative expenses increased $1,200,000 to $7,800,000 for the period ended March 31, 2024, compared to $6,700,000 in the Q1 of 2023. While our net spending increased, SG and A as a percentage of net sales remained in line with the first quarter of 2023. Selling expenses specifically increased marginally, but as a percentage of net sales, they decreased to 8.3% compared to 9.3% in the Q1 of 2023. Given our strong net sales increase, this demonstrates the increasing returns we are generating on our strategic sales and marketing investments. Speaker 100:05:10Our net income during the period ended March 31, 2024 was $2,400,000 reflecting EPS of $0.17 per basic and $0.16 per diluted common share compared to the net income of $800,000 or $0.06 per basic and diluted common share during the Q1 of 2023, nearly tripling on our year over year basis. This demonstrates that our top line and margin improvements continue to flow through well to the bottom line. Capital spending increased approximately $700,000 to $2,500,000 during the period ended March 31, 2024 compared to the Q1 of 2023. The increase in cash used reflects our planned increases during 2024 compared to 2023 to support our continued growth. Our capital spending is focused on 3 core areas: growth capital, cost reduction and facility improvements. Speaker 100:06:07Growth capital spending supports new product innovation and enhancements. Cost reduction and facility improvements support manufacturing efficiency, safety and productivity. Our CapEx spending is efficient and we generate a strong return when installing additional tanks as we leverage existing infrastructure to scale the business. This was another remarkable quarter for Lifeways, delivering record high top line results yet again, accompanied by our notable improvements in our profitability measures. Our growing customer base continues to prove resilient to macro pressures and demonstrate their loyalty to our core products as seen through our accelerating velocity. Speaker 100:06:45This is a testament to the staying power of modern health and wellness trends, which should remain a tailwind for Likeway as today's consumer continues to focus on high quality, better for you foods that are affordable. Our entire premium product portfolio led by our flagship keeper is nutritious, delicious and reasonably priced, which is why consumers come back for more and are eagerly awaiting new flavors and line extensions. Our kefir products are tart and tangy and provide customers with probiotics, vitamin D and protein to help support their gut health, immunity and mental well-being. The probiotics in kefir support a healthy microbiome and approximately 80% of immune defenses come from the gut. Probiotic products such as kefir are the focus Operator00:07:36of Speaker 100:07:38to 90% of the body's serotonin comes from gut cells and the gut brain access, which links emotional and cognitive centers of the brain with our intestinal function, plays a major role in happiness and well-being. A recent study published by DMC Medicine also suggests that probiotics in dairy kefir show potential promise in improving the gut health of ICU patients and the small study protocol in the U. K. Examined the effects and potential benefits on children with ADHD who consume kefir. It's an exciting time for microbiome research and we applaud the recent efforts to uncover new and amazing ways that fermented and cultured foods can positively impact our health. Speaker 100:08:20As you would expect, this record breaking quarter was spearheaded by the core driver of our business, our industry leading drinkable, best in class, lightweight kefir. Net sales of our drinkable kefir increased 22.6% to $36,500,000 for the period ended March 31, 2024, compared to the Q1 in 2023. We continue to dominate the U. S. Kefir market, an industry that we have built. Speaker 100:08:49And the majority of our time and investments will be dedicated to our core product through both strategic marketing and incremental distribution opportunities to drive brand exposure and capture a greater share of today's health focused consumers and the expanding global kefir market. While selling your branded drinkable kefir is our primary focus and exactly what we do best, we also continuously evaluate trends within the probiotic market and health food space to improve and diversify the suite of products we offer to satisfy our consumers' evolving preferences. Within Kiefer, these insights lead to numerous product innovations, including our guava, low fat kefir and our organic home of products, which continue to gain popularity and our organic grass fed keeper flavors that have begun to attract consumers within the growing grass fed dairy market. In addition to our within the Kiefer category, we are strategically marketing and have invested behind Lifeway Farmer Cheese to capitalize on the growing consumer interest in soft cheese products. Our Farmer Cheese has been a cult favorite ever since its introduction, selling strongly relative to distribution in specialty stores nationwide. Speaker 100:10:01It is also a logical alternative to blended cottage cheese recipes that continue to buzz through social media. It has the smooth blended texture that consumers are looking for while being a much healthier ingredient for full protein and probiotics. Our farmer cheese also has no added salt, which is which allows it to complement for a far more diverse set of flavors. It is important to note that while we are consistently assessing trends and growth opportunities, we only enter a new product category if we view the product or innovation as sustainable and profitable endeavor. For example, we've sold farmer cheese for years at small yet profitable measures, which gives us confidence to strategically market and invest behind it today to match heightened demand within the space. Speaker 100:10:49One last note on our Farmers Cheese. In April, we're excited to announce that it was named as a winner in the Good Housekeeping 2024 Best Snack Awards. Congratulations. I'll now touch on some marketing and advertising updates. We had a great brand experience at Coachella last month. Speaker 100:11:06Our products were featured at the Kardashians' Camp Poosh activation with Air 1 receiving coveted influencer impressions. We look forward to a packed summer with participation at music festivals, yoga events and more. We enjoy these in person experiences as they allow us to connect with our consumers on a deeper level during their wellness journeys. As part of our efforts to create a deeper connection with customers, I recently appeared on NBC's California Live to talk about celebrating Mother's Day with probiotic Lifeway products, highlighting their versatility in breakfast and brunch recipes. We remain hyper focused on marketing that moves units. Speaker 100:11:46As we mentioned last quarter, we ran a large in store promotion across many retailers, creating temporary refrigerated spaces showcasing Lifeway branded products and placing them at high traffic end caps. This promotion was successful and we plan to initiate another similar campaign in the coming months. We continue to deepen relationships with our retailers and in store partners with the goal of making sure Lifeway products appear at interruptive moments within the store to drive trial, capture new customers who don't typically shop in our section and boost retention rates. We are also committed to our e commerce strategy. We are investing in targeted advertising on our retail partner sites and general e commerce platforms such as Instacart with the same goal as before, to drive trial and loyalty amongst our growing consumer base. Speaker 100:12:36These e commerce efforts are supported by our advertising and search display and social. We continue to partner with social media influencers, including celebrities, chefs and nutrition experts with notable following. Through them, we deliver widespread advertising aimed at educating consumers on our healthy products and the various recipes they can be used in. We have an in house ambassador program that we augment with our additional influencer agency campaigns to generate brand and category awareness. We then leverage our internal creative marketing team to drive demand for specific items that best match each audience profile. Speaker 100:13:16Our nimble and efficient marketing strategy allows us to connect customers with likely products they will enjoy the most, while also keeping our advertising spend in check. Now, I'll touch on some distribution updates. We recently gained limited rotation for our twin pack of 32 ounce keeper at 2 major club stores. This is a trial basis, but with strong sell through, we could attain additional periodic rotations, which could eventually lead to an everyday placement. We are excited about our pipeline of opportunities and the continued engagement from large additional retailer locations. Speaker 100:13:52As we mentioned last quarter, we have recently gained incremental placements for Lifeway products at Publix, Galvin, Cub, Erewhon and Kroger. We are maintaining our strong relationships with key partners and are consistently seeking out distribution opportunities across a variety of channels that make sense for each of our offerings with a focus on our flagship Lifeway Drinkables Kiefer. With that, I'd like to thank you all for joining us today. The Q1 was an incredible start to 2024 as we eclipse our quarterly sales record once again, while delivering vastly profitability measures. I am confident that we have the right team in place to carry our strong momentum and growth throughout the year. Speaker 100:14:36And I am excited to continue delivering on our mission to bring best in class probiotic and nutritious foods to our growing base of health conscious consumers. And on a personal note, May 4 marked what would have been Michael Smolansky, my father and Lifeway Foods' founder's 77th birthday and in the coming weeks on June 9 will mark 22 years since his sudden passing and my 22nd year as Lifeway's CEO. Michael arrived to the United States as a Soviet refugee in 1976 with $116 no English language and a young family with an unwavering pursuit of the American dream and entrepreneurial aspiration. Michael was obsessed with the microbiome and the science and health benefits of Kiefer. He recommended Kiefer to everyone he met and intuitively knew it could heal the body inside and out, and he regularly quoted research findings of Doctor. Speaker 100:15:32Eli Metchnikoff, the godfather of immunity. Michael dreamed of a time when more people recognize the health benefits of Kiefer and a time when Lifeway Kiefer was available in every refrigerator in the United States. And every day, the team at Lifeway works to realize that dream. I know with certainty, Michael would be proud and in awe of all that LifeWay has accomplished. And I too am proud of my leadership and perseverance, especially during the many challenging times over the last 22 years. Speaker 100:16:04It is my privilege and honor to be at the helm of Lifeways. Together, we have built something truly special and I'm confident that our best days are still ahead of us. With your continued support and dedication and passion, there is no limit to what we can achieve. We look forward to updating you on our progress during our Q2 call in August. We hope everyone has a fun, safe and memorable summer and I hope you have a nice day. Speaker 100:16:30Thank you.Read morePowered by