Lifeway Foods, Inc. (LWAY) has reported an 87.02 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $0.12 million, or $0.01 a share in the quarter, compared with $0.96 million, or $0.06 a share for the same period last year. Revenue during the quarter went down marginally by 1.39 percent to $32.12 million from $32.57 million in the previous year period. Gross margin for the quarter contracted 38 basis points over the previous year period to 26.33 percent. Total expenses were 99.17 percent of quarterly revenues, up from 95.04 percent for the same period last year. That has resulted in a contraction of 413 basis points in operating margin to 0.83 percent.
Operating income for the quarter was $0.27 million, compared with $1.61 million in the previous year period.
"Coming into 2017, we were prepared to overlap our first quarter of 2016, which was the single biggest sales and growth quarter last year," said chief executive officer Julie Smolyanksy. "We maintained our focus on driving consumption and making investments in innovation, marketing and the restructuring of our sales organization. Despite headwinds in the edibles category during the first quarter 2017, driven by lower foot traffic at retail, the impact of e-commerce and the resulting pricing pressures, Lifeway posted consumption growth in total US multi-outlet in the first quarter, reflecting the strength of the Lifeway brand and consumer loyalty. We are confident in our ability to execute against our strategic initiatives throughout the balance of 2017 and beyond."
Operating cash flow turns positive
Lifeway Foods, Inc. has generated cash of $2.25 million from operating activities during the quarter as against cash outgo of $1.02 million in the last year period. The company has spent $1.04 million cash to meet investing activities during the quarter as against cash outgo of $0.19 million in the last year period.
The company has spent $0.21 million cash to carry out financing activities during the quarter as against cash outgo of $0.65 million in the last year period.
Cash and cash equivalents stood at $9.81 million as on Mar. 31, 2017, up 159.06 percent or $6.02 million from $3.79 million on Mar. 31, 2016.
Working capital increases
Lifeway Foods, Inc. has recorded an increase in the working capital over the last year. It stood at $18.01 million as at Mar. 31, 2017, up 8.74 percent or $1.45 million from $16.57 million on Mar. 31, 2016. Current ratio was at 2.43 as on Mar. 31, 2017, down from 2.65 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 17 days for the quarter from 32 days for the last year period. Days sales outstanding went up to 32 days for the quarter compared with 30 days for the same period last year.
Days inventory outstanding has decreased to 15 days for the quarter compared with 30 days for the previous year period. At the same time, days payable outstanding went up to 29 days for the quarter from 28 for the same period last year.
Debt comes down
Lifeway Foods, Inc. has recorded a decline in total debt over the last one year. It stood at $6.91 million as on Mar. 31, 2017, down 10.84 percent or $0.84 million from $7.75 million on Mar. 31, 2016. Total debt was 10.08 percent of total assets as on Mar. 31, 2017, compared with 12.07 percent on Mar. 31, 2016. Debt to equity ratio was at 0.14 as on Mar. 31, 2017, down from 0.17 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 4.67 for the quarter from 27.83 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]
