- Company also announces unaudited preliminary fourth quarter net
sales between $45.1 million to
$46.6 million
- Full year 2024 preliminary unaudited net sales are projected to
range between $185.0 million and
$186.5 million compared to
$160.1 million in 2023
MORTON
GROVE, Ill., Jan. 6, 2025
/PRNewswire/ -- Lifeway Foods, Inc. (NASDAQ: LWAY) ("Lifeway"
or the "Company"), a leading U.S. supplier of kefir and fermented
probiotic products to support the microbiome, today announced that
its Board of Directors (the "Board") has responded to the
December 30, 2024 letter sent to
Lifeway by Danone North America PBC ("Danone") reaffirming that the
Company rejected Danone's offer to acquire the Company because it
severely undervalues the Company, based on analysis by the
Company's independent financial and legal advisors. The Board
reiterated that it is not opposed to a sale at a price that more
accurately reflects the true value of the Company.
Further, the Company has made clear that the 1999 Stockholders
agreement between the Company and Danone violates Illinois law. An agreement that is invalid
does not become valid simply because both parties follow its terms
for a period of time, no matter how long. The Company intends to
pursue all available remedies to enforce Illinois law and nullify the agreement.
"Danone is opportunistically determined to push through an
inadequate offer and in the meantime, Lifeway has continued to
execute on its strategy and is delivering substantial value for
shareholders," said Julie
Smolyansky, Chairwoman & CEO of Lifeway. "In addition,
for the full year 2024, Lifeway's net sales are projected to range
between $185.0 million to
$186.5 million compared to
$160.1 million in 2023, which
demonstrates the efficacy of Lifeway's business strategy and
execution," added Ms. Smolyansky.
Given Danone's unsolicited and opportunistic proposal to acquire
Lifeway, the Company and its outside advisors are looking at the
relationship between the parties and assessing how to best protect
the interests of the Company and its shareholders.
Lifeway's CEO Ms. Smolyansky has presided over a tremendously
successful period of growth, including 21 consecutive quarters of
growth through the fourth quarter of 2024, double-digit
year-over-year revenue growth in the third quarter of 2024, and
total shareholder returns of 788% and 270% over the past five and
three years, respectively, (as measured through September 23, 2024, the last full trading day
before Danone's initial unsolicited proposal was publicly
disclosed), far outperforming other high growth food and beverage
peers as well as the S&P 500 as noted above. The Board believes
that Ms. Smolyansky's continued stewardship is critical to ensuring
the success of the Company's standalone business plan.
About Lifeway Foods, Inc.
Lifeway Foods, Inc., which has been recognized as one of Forbes'
Best Small Companies, is America's leading supplier of the
probiotic, fermented beverage known as kefir. In addition to its
line of drinkable kefir, the company also produces a variety of
cheeses and a ProBugs line for kids. Lifeway's tart and tangy
fermented dairy products are now sold across the United
States, Mexico, Ireland, South Africa, United
Arab Emirates and France. Learn how Lifeway is good for
more than just you at lifewayfoods.com.
Forward-Looking Statements
This press release contains "forward-looking statements" as defined
in the Private Securities Litigation Reform Act of 1995 regarding,
among other things, Lifeway's outlook, expected manufacturing
efficiencies and fixed cost absorption, expectations regarding
future operating and financial performance, future business
strategy and objectives and expected shipping
to Dubai and the United Arab
Emirates. These statements use words, and variations of words, such
as "will," "continue," "build," "future," "increase," "drive,"
"believe," "look," "ahead," "confident," "deliver," "outlook,"
"expect," and "predict." You are cautioned not to rely on these
forward-looking statements. These forward-looking statements are
made as of the date of this press release, are based on current
expectations of future events and thus are inherently subject to a
number of risks and uncertainties, many of which involve factors or
circumstances beyond Lifeway's control. If underlying assumptions
prove inaccurate or known or unknown risks or uncertainties
materialize, actual results could vary materially from Lifeway's
expectations and projections. These risks, uncertainties, and other
factors include: price competition; the decisions of customers or
consumers; the actions of competitors; changes in the pricing of
commodities; the effects of government regulation; possible delays
in the introduction of new products; and customer acceptance of
products and services. A further list and description of these
risks, uncertainties, and other factors can be found in Lifeway's
Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and Quarterly Report on Form
10-Q for the quarter ended September 30,
2024. Copies of these filings are available online at
https://www.sec.gov,
http://lifewaykefir.com/investor-relations/, or on
request from Lifeway. Lifeway expressly disclaims any obligation to
update any forward-looking statements (including, without
limitation, to reflect changed assumptions, the occurrence of
anticipated or unanticipated events or new information), except as
required by law.
Perceptual Advisors
Dan Tarman
Email: dtarman@perceptualadvisors.com
Company contact:
Derek Miller
Vice President of Communications, Lifeway Foods
Email: derekm@lifeway.net
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SOURCE Lifeway Foods, Inc.