Lifeway Foods, Inc. ( LWAY ) shares are trading higher on Tuesday.

The company reported second-quarter earnings per share of 25 cents, beating the analyst consensus of 21 cents.

The company registered net sales of $49.2 million in the quarter under review, up 25.3% year over year, driven by Lifeway Kefir’s volume growth. Sales outpaced the street view of $45.50 million.

“Accompanying the very strong, volume-led topline growth, we continued to enhance our profitability profile with solid gross margins and strong net income growth, a testament to the seamless operational execution of our whole Lifeway team,” commented Julie Smolyansky, President and Chief Executive Officer of Lifeway Foods ( LWAY ). 

Gross profit as a percentage of net sales was 27.0% for the second quarter ended June 30, 2024. Selling, general and administrative expenses as a percentage of net sales were 15.8% for the second quarter.

“We are thrilled with our results in the first half of 2024, and will continue to strategically invest behind the Lifeway brand to drive velocities, win new customers and position ourself to deliver more outstanding performances through the second half of this year and beyond,” Smolyansky added.

The company exited the quarter with cash and equivalents worth $14.6 million. Inventories, at the end of the quarter, stood at $8.454 million.

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In another development, son and mother Edward and Ludmila Smolyansky, significant shareholders of Lifeway Foods ( LWAY ), announced filing a consent statement with the U.S. Securities and Exchange Commission, marking the launch of their “Life Back to Lifeway” campaign.

The campaign seeks to replace the health food company’s current Board, including CEO Julie Smolyansky.

Lifeway Foods ( LWAY ) was founded by Michael Smolyansky in 1986. When Michael passed away in 2002, his children Julie and Edward took over leadership.

“Under my sister Julie’s authority, Lifeway has been on autopilot for far too long, missing critical market opportunities due to a lack of strategic vision,” said Edward Smolyansky, former COO of Lifeway Foods ( LWAY ). 

Earlier in 2022, Lifeway Foods ( LWAY ) entered an agreement with Edward and Ludmila Smolyansky, who agreed to withdraw their director nominations.

Ludmila Smolyansky, co-founder and former Chairperson of Lifeway Foods ( LWAY ), added, “The company, started by my husband and me in 1986, needs a fresh direction that honors its legacy while securing its future. A new path forward will benefit everyone — our employees, our shareholders, and even my daughter Julie.”

According to a July press release, Ludmila and Edward Smolyansky beneficially owned approximately 29% of the outstanding common stock of Lifeway Foods ( LWAY ) and urged immediate termination of Julie Smolyansky’s “Chief of Staff” and spouse, Jason Burdeen, a former jeweler.

Price Action: LWAY shares are trading higher by 47.1% to $16.49 at last check Tuesday.

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