 Second Quarter Net Sales Increase 8 Year-Over-Year to 25 MillionMORTON GROVE, Ill., Aug. 13, 2020 GLOBE NEWSWIRE -- 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 financial results for the second quarter ended June 30, 2020. I am pleased to report that our strong business momentum continued in the second quarter of 2020, with an 8 increase in sales compared to the second quarter of 2019, commented Julie Smolyansky, Lifeways President and Chief Executive Officer. We benefited from robust consumer demand during the quarter both through our retail and e-commerce sales channels. Our team executed incredibly well in a dynamic operating environment, truly demonstrating the strength and resiliency of our organization. We believe research and trends around probiotics, vitamin D and immunity supporting foods continues to attract consumers, particularly in light of the ongoing pandemic. As consumers place greater emphasis on self-care, health and nutrition, Lifeway will be there to meet the demand for natural, probiotic products that taste great and offer a range of benefits. Going forward, we expect to maintain our growth trajectory as we benefit from increases in velocity and distribution, as well as new product innovation.Second Quarter ResultsNet sales were 25.0 million for the second quarter of 2020, an increase of 8.0 from 23.2 million in the second quarter of 2019.Gross profit as a percentage of net sales was 27.7 for the second quarter of 2020, an increase of 410 basis points from 23.6 for the first quarter of 2020. Gross profit percentage was 24.0 in prior year period. The increase versus the prior year was primarily due to the impact of favorable milk pricing, partially offset by an increase in salaries associated with hourly commitment award wage premiums implemented during 2020 due to COVID-19. Additionally, depreciation expense increased reflecting our continued investment in manufacturing improvements.Second quarter of 2020 selling expenses were consistent with the second quarter of 2019 at 2.7 million. Selling expenses as a percentage of net sales were 10.9 during the second quarter compared to 11.6 for the same period in 2019.General and administrative expenses decreased 0.5 million or 8.0 to 5.9 million for the first half of 2020 from 6.4 million during the same period in 2019. The decrease is primarily a result of lower compensation expense due to organizational changes made in 2019 and lower incentive compensation, partially offset by increased professional fee expense.The effective income tax rate for the first half of 2020 was 29.0 compared to 7.2 in the same period last year. The increase in the effective tax rate was primarily due to non-deductible officer compensation expense, non-deductible compensation expense related to equity incentive awards, separate state tax rates, and the provision for unrecognized tax benefits. The increase was partially offset by the benefit from a net operating loss carryback provision of the CARES Act which went into effect during the first quarter of fiscal year 2020. Although similar items were reflected in 2019, the percentage effect is substantially different due to the difference in pre-tax income in 2020 compared to the pre-tax loss in 2019.The Company reported earnings of 0.06 per diluted share for the second quarter of 2020, an increase from earnings of 0.01 per diluted share in the first quarter of 2020, and as compared to a net loss of 0.01 per diluted share, in the second quarter of 2019. Conference Call and WebcastA pre-recorded conference call and webcast with Julie Smolyansky discussing these results with additional comments and details will be available today at approximately 7:00 a.m. ET. The webcast will be available over the Internet through the Investor Relations section of the Companys website at An audio replay will be available through August 27, 2020. North American listeners may dial 844-512-2921 and international listeners may dial 412-317-6671. The passcode is 11141231.About Lifeway Foods, Inc.Lifeway Foods, Inc., which has been recognized as one of Forbes Best Small Companies, is Americas leading supplier of the probiotic, fermented beverage known as kefir. In addition to its line of drinkable kefir, the company also produces cupped kefir and cheese, frozen kefir, specialty cheeses, probiotic supplements and a ProBugs line for kids. Lifeways tart and tangy fermented dairy and non-dairy products are now sold across the United States, Mexico, Ireland and the United Kingdom. Learn how Lifeway is good for more than just you at StatementsThis release and oral statements made regarding the subjects of this release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, future operating and financial performance, product development, market position, business strategy and objectives. These statements use words, and variations of words, such as from time to time, intend, plan, ongoing, realize, should, may, could, believe, future, depend, expect, will, result, can, remain, assurance, subject to, require, limit, impose, guarantee, restrict, continue, become, likely, opportunities, effect, change, estimate, continue, build, future, increase, drive, believe, look, ahead, confident, deliver, outlook, expect, and predict. Other examples of forward looking statements may include, but are not limited to, i statements of Company plans and objectives, including the introduction of new products, or estimates or predictions of actions by customers or suppliers, ii statements of future economic performance, and iii statements of assumptions underlying other statements and statements about Lifeway or its business. You are cautioned not to rely on these forward-looking statements. Forward looking statements are based on managements beliefs, assumptions, estimates and observations of future events based on information available to our management at the time the statements are made and include any statements that do not relate to any historical or current fact. These statements are not guarantees of future performance and they involve certain risks, uncertainties and assumptions that are difficult to predict. Actual outcomes and results may differ materially from what is expressed, implied or forecast by our forward looking statements due in part to the risks, uncertainties, and assumptions that include: the decisions of consumers, our ability to successfully implement our business strategy, changes in the pricing of commodities, the effects of government regulations, the impact of the COVID-19 outbreak on our business, suppliers, consumers, customers and employees, and disruptions in our supply chain or our manufacturing and distribution capabilities, including those due to cyber security threats and the COVID-19 outbreak. A further list and description of these risks, uncertainties, and other factors can be found in Lifeways Annual Report on Form 10-K for the fiscal year ended December 31, 2019, and the Companys subsequent filings with the SEC. Copies of these filings are available online at or on request from Lifeway. Information in this release is as of the dates and time periods indicated herein, and Lifeway does not undertake to update any of the information contained in these materials, except as required by law. Accordingly, YOU SHOULD NOT RELY ON THE ACCURACY OF ANY OF THE STATEMENTS OR OTHER INFORMATION CONTAINED IN ANY ARCHIVED PRESS RELEASE.Contact:Lifeway Foods, Inc. Phone: 847-967-1010 Email: FOODS, INC. 