Lifeway Foods, Inc., (LWAY) has reported a 76.42 percent jump in profit for the year ended Dec. 31, 2016. The company has earned $3.48 million, or $0.22 a share in the year, compared with $1.97 million, or $0.12 a share for the last year.
Revenue during the year grew 4.46 percent to $123.88 million from $118.59 million in the previous year. Gross margin for the year expanded 308 basis points over the previous year to 28.28 percent. Total expenses were 95.09 percent of annual revenues, down from 96.29 percent for the last year. This has led to an improvement of 120 basis points in operating margin to 4.91 percent.
Operating income for the year was $6.08 million, compared with $4.40 million in the previous year.
"We had another exciting year and are pleased with our 2016 financial results, particularly in light of the challenging food retail environment. We increased our net income by 76% year-over-year, largely driven by strong gross profit growth," said Julie Smolyansky, chief executive officer of Lifeway Foods, Inc. "We continue to focus our efforts on strengthening our business through new product innovation and expanded distribution to both new and existing customers. We look forward to an outstanding 2017 and believe we are well-positioned to achieve net sales and earnings growth through the successful execution of our key initiatives."
Operating cash flow declines
Lifeway Foods, Inc., has generated cash of $5.10 million from operating activities during the year, down 24.33 percent or $1.64 million, when compared with the last year.
The company has spent $0.36 million cash to meet investing activities during the year as against cash outgo of $1.78 million in the last year. It has incurred net capital expenditure of $3.06 million on net basis during the year, up 86.66 percent or $1.42 million from year ago.
The company has spent $1.58 million cash to carry out financing activities during the year as against cash outgo of $2.58 million in the last year period.
Cash and cash equivalents stood at $8.81 million as on Dec. 31, 2016, up 56.08 percent or $3.17 million from $5.65 million on Dec. 31, 2015.
Debt comes down
Lifeway Foods, Inc., has recorded a decline in total debt over the last one year. It stood at $7.12 million as on Dec. 31, 2016, down 10.55 percent or $0.84 million from $7.96 million on Dec. 31, 2015. Total debt was 10.81 percent of total assets as on Dec. 31, 2016, compared with 12.26 percent on Dec. 31, 2015. Debt to equity ratio was at 0.15 as on Dec. 31, 2016, down from 0.18 as on Dec. 31, 2015. Interest coverage ratio improved to 27.66 for the year from 18.66 for the same period last year.
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