Lifeway Foods, Inc. (LWAY) has reported an 85.22 percent plunge in profit for the quarter ended Jun. 30, 2015. The company has earned $0.10 million, or $0.01 a share in the quarter, compared with $0.67 million, or $0.04 a share for the same period last year.
Revenue during the quarter went up marginally by 0.87 percent to $29.82 million from $29.57 million in the previous year period. Gross margin for the quarter contracted 186 basis points over the previous year period to 23.53 percent. Total expenses were 99.84 percent of quarterly revenues, up from 94.84 percent for the same period last year. That has resulted in a contraction of 499 basis points in operating margin to 0.16 percent.
Operating income for the quarter was $0.05 million, compared with $1.52 million in the previous year period.
"I am pleased with our team's ability to increase distribution across retail channels fueled by new product innovation and heightened consumer awareness of Lifeway," said Julie Smolyansky, chief executive officer of Lifeway Foods, Inc. "While our recent net sales growth was hindered by capacity constraints in our Illinois facility, we believe we are well positioned to benefit in the second half of 2015 from new production capacity at our Wisconsin facility which began producing kefir in June."
Operating cash flow improves significantly
Lifeway Foods, Inc. has generated cash of $4.70 million from operating activities during the first half, up 123.73 percent or $2.60 million, when compared with the last year period. The company has spent $1.47 million cash to meet investing activities during the first six months as against cash outgo of $2.10 million in the last year period. It has incurred net capital expenditure of $1.03 million on net basis during the first six months, down 41.13 percent or $0.72 million from year ago period.
The company has spent $0.62 million cash to carry out financing activities during the first six months as against cash outgo of $0.44 million in the last year period.
Cash and cash equivalents stood at $5.87 million as on Jun. 30, 2015, up 104.66 percent or $3 million from $2.87 million on Jun. 30, 2014.
Working capital decreases marginally
Lifeway Foods, Inc. has witnessed a decline in the working capital over the last year. It stood at $15.85 million as at Jun. 30, 2015, down 3.52 percent or $0.58 million from $16.43 million on Jun. 30, 2014. Current ratio was at 2.40 as on Jun. 30, 2015, down from 2.99 on Jun. 30, 2014.
Debt comes down
Lifeway Foods, Inc. has recorded a decline in total debt over the last one year. It stood at $8.38 million as on Jun. 30, 2015, down 11.17 percent or $1.05 million from $9.43 million on Jun. 30, 2014. Total debt was 12.67 percent of total assets as on Jun. 30, 2015, compared with 14.75 percent on Jun. 30, 2014. Debt to equity ratio was at 0.18 as on Jun. 30, 2015, down from 0.21 as on Jun. 30, 2014. Interest coverage ratio deteriorated to 0.84 for the quarter from 22.85 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
