Q1 2024 Lifeway Foods Inc Earnings Call - Pre Recorded

Operator: On the call with me today is Julie Smolyansky, President and Chief Executive Officer. By now, everyone should have access to the press release that went out this morning. If you have not received the release, it is available on the investor relations portion of Lifeway's website at www.lifewayfoods.com. A recording of this call will be available on the company's website.

On the call with me today is Julie Smolinski, President and Chief Executive Officer.

Operator: By now everyone should have access to the press release that went out this morning.

Operator: If you have not received the release it is available on the Investor Relations portion of <unk> website at Www Dot Lifeway foods Dot com.

Operator: A recording of this call will be available on the company's website.

Operator: Before we begin, we would like to remind everyone that the prepared remarks contain forward-looking statements, the words "believe" and other similar expressions generally identified for mutton steaks. These statements do not guarantee future performance, and therefore undue reliance should not be placed on them. Actual results could differ materially from those projected in any forward-looking statements. Lifeway assumes no obligation to update any forward-looking projections that may be made in today's release or call. All of the forward-looking statements contained herein speak only as of the date of this call. And with that, I'd like to turn the call over to Lifeway's Chief Executive Officer, Julie Smolyansky.

Operator: Before we begin we would like to remind everyone that the prepared remarks contain forward looking statements.

Julie Smolyansky: The words believe expect anticipate and other similar expressions generally identify forward looking statements.

Operator: These statements do not guarantee future performance and therefore undue reliance should not be placed on them.

Operator: Actual results could differ materially from those projected in any forward looking statements.

Speaker Change: <unk> assumes no obligation to update any forward looking projections that may be made in today's release or call.

Operator: All of the forward looking statements contained herein speak only as of the date of this call.

Operator: And with that I'd like to turn the call over to Lifeway as Chief Executive Officer, Julie Smolinski.

Julie Smolyansky: Thank you, John, and good morning to everyone joining us today. As always, we greatly appreciate your interest in Lifeway Foods. I am excited to be speaking with you today and thrilled to report that the momentum from our record-breaking fiscal year 2023 has flowed smoothly into yet another strong quarter to start 2024. For the fourth quarter in a row, we have broken the company record for quarterly net sales, all while consistently delivering improved profitability metrics. Consistent growth and the excellent level of service we are providing to our valued customers and clients would not be possible without the effort and execution of our entire With that said, I will now review our results for the first quarter of 2024.

Julie Smolyansky: Thank you John and good morning to everyone joining us today as always we greatly appreciate your interest in my places I'm excited to be speaking with you today and thrilled to report that the momentum from our record breaking fiscal year 2023 has slowed smoothly into yet another strong quarter to start 2024.

Julie Smolyansky: For the fourth quarter in a row, we have broken the company record for quarterly net sales.

Julie Smolyansky: All while consistently delivering improved profitability metrics are consistent growth and excellent level of service, we are providing to our valued customers and clients would not be possible without the effort and execution of our entire lifeway team and we could not be more pleased with their efforts with that said I will now.

Julie Smolyansky: Net sales were $44.6 million for the period ended March 31, 2024, which was yet another record high quarter for Lifeway and an increase of $6.7 million, or 17.8%, compared to the first quarter of 2023. The net sales growth was primarily driven by higher volumes of our branded drinkable keeper. After a year of consistent volume growth in 2023, we're excited to continue the trend in the first quarter. This is further evidence that our strategic sales and marketing investments and our core items continue to accelerate velocity, grow awareness, and win new consumers who are seeking out premium, healthy products at great values. This record quarter also marked our 18th consecutive quarter of year-over-year net revenue growth. However, consumers continue to face well-documented macro headwinds, including inflation and high interest rates, and with that comes cautious spending.

Julie Smolyansky: We review our results for the first quarter of 2024.

Speaker Change: Net sales were $44 $6 million for the period ended March 31, 2024, which is yet another record high quarter for lifeway, and an increase of $6 $7 million or 17, 8% compared to the first quarter in 2023.

Julie Smolyansky: Net sales growth was primarily driven by higher volumes of our branded drinkable keeper.

Julie Smolyansky: After a year of consistent volume growth in 2023, we're excited to continue the trend in the first quarter.

Julie Smolyansky: This is further evidence that our strategic sales and marketing investments in our core item continue to accelerate velocities grow awareness and win new consumers, who are seeking out premium healthy products at great values.

Julie Smolyansky: This record quarter also marked our 18th consecutive quarter of year over year net revenue growth consumers continue to face well documented macro headwinds, including inflation and high interest rates and with that comes cautious spending. However, we continue to see strengthening in results demonstrating.

Julie Smolyansky: However, we continue to see strengthening results, demonstrating both the steadfast loyalty and the growth of our core customer base who rely on our high-quality, better-for-you products. Given our record-breaking 2023, which saw sequential growth in each quarter, our year-over-year lapse will continue to get more difficult, yet we aspire to continue clearing the high bars we have set for ourselves. We reported a growth profit margin of 25.8% for the period ended March 31st, 2024, increasing 410 basis points when compared to 21.7% in the first quarter of 2023.

Julie Smolyansky: Both the steadfast loyalty and the growth of our core customer base, who rely on our high quality better for you products.

Julie Smolyansky: Given our record breaking 2023, which saw sequential growth in each quarter or year over year lapse, we'll continue to get more difficult. Yeah. We aspire to continue clearing the high bar, we have set for ourselves.

Julie Smolyansky: We reported a gross profit margin of 25, 8% for the period ended March 31, 2024, increasing 410 basis points when compared to 21, 7% in the first quarter of 2023. This significant market margin expansion was primarily due to higher volumes of lifeway branded products and to a lesser.

Julie Smolyansky: This significant margin expansion was primarily due to higher volumes of Lifeway branded products and, to a lesser extent, favorable transportation costs. Following a year of notable margin expansion, we are pleased to see margins improve on a year-over-year basis once again.

Julie Smolyansky: Extent favorable transportation costs.

Julie Smolyansky: Following a year of notable margin expansion, we were pleased to see margins improve on a year over year basis once again.

Julie Smolyansky: Our margins remain a top priority for us, and our team continues to proactively manage the supply and transportation of the materials used to make, package, and deliver our products to our customers. This proactive discipline has allowed us to consistently match increasing demand, and we believe as the shipment volumes of our Lifeway branded products grow, we will continue to become more efficient. Now to our expenses, selling general and administrative expenses increased $1.2 million to $7.8 million for the period ended March 31, 2024, compared to $6.7 million in the first quarter of 2023.

Julie Smolyansky: Our margins remain a top priority for us and our team continues to proactively manage the supply and transportation of the materials used to make package and deliver our products to our customers. This proactive disciplined has allowed us to consistently match, the increasing demand and we believe as the shipment volumes of our lifeway branded.

Rose: <unk> Rose, we will continue to become more efficient.

Julie Smolyansky: While our net spending increased, SG&A as a percentage of net sales remained in line with the first quarter of 2023; selling expenses specifically increased marginally, but as a percentage of net sales, they decreased to 8.3% compared to 9.3% in the first quarter of 2023. Given our strong net sales increase, this demonstrates the increasing returns we are generating on our strategic sales and marketing investments. Our net income during the period ended March 31st, 2024 was $2.4 million, reflecting EPS of 17 cents per basic and 16 cents per diluted common share compared to a net income of $0.8 million, or six cents per basic and diluted common share, during the first quarter of 2023.

Julie Smolyansky: Now to our expenses.

Julie Smolyansky: Selling general and administrative expenses increased $1 $2 million to $7 $8 million for the period ended March 31, 2024, compared to $6 $7 million in the first quarter of 2023, while our net funding increase SG&A as a percentage of net sales remained in line with the first quarter of 'twenty.

Julie Smolyansky: 23.

Julie Smolyansky: Selling expenses, specifically increased marginally, but as a percentage of net sales decreased to eight 3% compared to nine 3% in the first quarter of 2023.

Julie Smolyansky: Given our strong net sales increase this demonstrates the increasing returns we are generating on our strategic sales and marketing investments.

Julie Smolyansky: Our net income during the period ended March 31st 2024, with $2 $4 million, reflecting EPS of <unk> 17 per basic and <unk> 16 per diluted common share compared to the net income of <unk> $8 million or six per basic and diluted common share during the first quarter of 2012.

Julie Smolyansky: Nearly tripling on a year-over-year basis, this demonstrates that our top line and margin improvements continue to flow through well to the bottom line. Capital spending increased approximately $0.7 million to $2.5 million during the period ended March 31, 2024, compared to the first quarter of 2023.

Julie Smolyansky: Three nearly tripling on a year over year basis. This demonstrates that our topline and margin improvements continue to flow through well to the bottomline.

Julie Smolyansky: Capital spending increased approximately <unk> $7 million to $2.5 million. During the period ended March 31st 2024 compared to the first quarter of 2023.

Julie Smolyansky: The increase in cash used reflects our planned increases in 2024 compared to 2023 to support our continued growth. Our capital spending is focused on three core areas: growth capital, cost reduction, and facility improvement. Growth capital spending supports new product innovation and enhancements. Cost reduction and facility improvement support manufacturing efficiency, safety, and productivity.

Speaker Change: The increase in cash use reflects our planned increases during 2024 compared to 2023 to support our continued growth our capital spending is focused on three core areas gross capital cost reduction and facility improvement growth capital spending supports new product innovation and enhancements cost reduction and facility improvements support man.

Speaker Change: Are you factoring efficiency safety and productivity, our capex spending is efficient and we generate a strong return when installing additional tank as we leverage existing infrastructure to scale the business. This.

Julie Smolyansky: Our CapEx spending is efficient, and we generate a strong return when installing additional tanks as we leverage existing infrastructure to scale the business. This is another remarkable quarter for Lifeway, delivering record-high top-line results yet again, accompanied by our notable improvements in our profitability measures. Our growing customer base continues to prove resilient to macro pressures and demonstrate their loyalty to our core products, as seen through our accelerating velocity. This is a testament to the staying power of modern health and wellness trends, which should remain a tailwind for Lifeway as today's consumer continues to focus on high-quality, better-for-you foods that are affordable.

Julie Smolyansky: This was another remarkable quarter for lifeway delivering record high topline results, yet again, accompanied by our notable improvements in our profitability measures our growing customer base continues to prove resilient to macro pressures and demonstrate their loyalty to our core products as seen through our accelerating velocity.

Julie Smolyansky: This is a testament to the same power of modern health and wellness trends, which should remain a tailwind for lifeway as today's consumer continues to focus on high quality better for you foods that are affordable our entire premium product portfolio led by our flagship keeper is nutritious delicious unreasonably place.

Julie Smolyansky: Our entire premium product portfolio, led by our flagship keeper, is nutritious, delicious, and reasonably priced, which is why consumers come back for more and are eagerly awaiting new flavors and line extensions. Our kefir products are tart and tangy and provide customers with probiotics, vitamin D, and protein to help support their gut health, immunity, and mental wellbeing. The probiotics in kefir support a healthy microbiome, and approximately 80% of immune defenses come from the gut.

Julie Smolyansky: Which is why consumers come back for more and are eagerly awaiting new flavors and line extensions.

Julie Smolyansky: Keefer products, our tart tangy and provide customers with probiotics vitamin D and protein to help support their god help immunity and mental well being the probiotics and keep her support a healthy microbiome and up approximately 80% of immune defense have come from the Guy probiotic products such as keep her are the focus of intense read.

Julie Smolyansky: Probiotic products such as kefir are the focus of intense research related to the microbiome's role. We now know that up to 90% of the body's serotonin comes from gut cells, and the gut-brain connection, which links emotional and cognitive centers of the brain with our intestinal functions, plays a major role in happiness and well-being. A recent study published by BMC Medicine also suggests that probiotics in dairy kefir show potential promise in improving the gut health of ICU patients, and a small study protocol in the UK examined the effects and potential benefits of kefir on children with ADHD who consume kefir.

Speaker Change: <unk> related to the microbiome roll in stress depression and anxiety.

Speaker Change: We now know that up to 90% of the body's aratana them come from Scottsdale, and they got brain access, which links emotional and cognitive centers of the brain with our intestinal function plays a major role in happiness and wellbeing.

Speaker Change: A recent study published IBM see Madison also suggests that probiotics and dairy keep her show potential promise and improving the guardhouse of ICU patients and a small study protocol in the U K examine the effects and potential benefits I'm children with ADHD, who consume keeper, it's an exciting time for microbiome research and we are.

Julie Smolyansky: It's an exciting time for microbiome research, and we applaud the recent efforts to uncover new and amazing ways that fermented and cultured foods can positively impact our health. As you would expect, this record-breaking quarter was spearheaded by the core driver of our business, our industry-leading, drinkable, best-in-class Lifeway kefir. Net sales of our drinkable kefir increased 22.6% to $36.5 million for the period ended March 31, 2024, compared to the first quarter of 2023.

Julie Smolyansky: Claude the recent efforts to uncover new and amazing ways that fermented and culture food can positively impact our health.

Lifeway CEO: As you would expect this record breaking quarter with spearheaded by the core driver of our business our industry, leading drinkable best in class like way Keefer.

Julie Smolyansky: Net sales of our drinkable keeper increased 22, 6% to $36 $5 million for the period ended March 31, 2024 compared to the first quarter. In 2023, we continue to dominate the U S, Keith where market and industry that we have built.

Julie Smolyansky: We continue to dominate the U.S. kefir market, an industry that we have built, and the majority of our time and investments will be dedicated to our core product through both strategic marketing and incremental distribution opportunities to drive brand exposure and capture a greater share of today's health-focused consumers and the expanding global kefir market. While selling your branded drinkable kefir is our primary focus and exactly what we do best, we also continuously evaluate trends within the probiotic market and health food space to improve and diversify the suite of products we offer to satisfy our consumers' evolving preferences.

Julie Smolyansky: And the majority of our time and investments will be dedicated to our core product through both strategic marketing and incremental distribution opportunities to drive brand exposure and capture a greater share of today's health focused consumer and the expanding global keefer market, while selling a branded drinkable keeper is our primary focus and exactly.

Julie Smolyansky: What we do best.

Julie Smolyansky: We also continuously evaluate trends within the probiotic market in health food space to improve and diverse a diversified suite of products, we offer to satisfy our consumers' evolving preferences.

Julie Smolyansky: Within Keefer, these insights led to numerous product innovations, including our Guava Low-Fat Keefer and our Organic Home Milk products, which continue to gain popularity, and our Organic Grass-Fed Keefer flavors, which have begun to attract consumers within the growing grass-fed dairy market.

Speaker Change: Within keep her seasons by insights lead to numerous product innovation, including a guava lowfat keeper and our organic whole milk products, which continue to gain popularity and our organic graph, but keep her flavors that have begun to attract consumers within the growing grasp dairy market in.

Julie Smolyansky: In addition to our innovations within the Kiefer category, we are strategically marketing and investing in Lifeway Farmer Cheese to capitalize on the growing consumer interest in soft cheese products. Our Farmer Cheese has been a cult favorite ever since its introduction, selling strongly relative to distribution in specialty stores nationwide. It is also a logical alternative to blended cottage cheese recipes that continue to be popular on social media. It has the smooth, blended texture that consumers are looking for while being a much healthier ingredient for full protein and probiotics. Our Farmer Cheese also has no added salt, which allows it to complement a far more diverse set of flavors.

Julie Smolyansky: In addition to our innovations within the key for category, we are strategic strategically marketing and have invested behind lifeway farmer cheese to capitalize on the growing consumer interest in soft chief product.

Julie Smolyansky: Our farmer cheese has been a cult favorite ever since its introduction selling strongly relative to distribution in specialty stores nationwide.

Julie Smolyansky: It is also a logical alternative to blended cottage cheese recipes that continued to buzz through social media.

Speaker Change: It has a smooth blended texture that consumers are looking for while being a much healthier ingredients for full protein and probiotics are farmer cheese also has no added salt, which is which allows us a complement for a far more diverse set of flavor.

Julie Smolyansky: It is important to note that while we're consistently assessing trends and growth opportunities, we only enter a new product category if we view the product or innovation as sustainable and a profitable endeavor. For example, we've sold Farmer's Cheese for years as a small yet profitable business, which gives us confidence to strategically market and invest behind it today to match heightened demand within the space. One last note on our Farmer's Cheese. In April, we're excited to announce that it was named a winner in the Good Housekeeping 2024 Best Snack Awards. Congratulations!

Julie Smolyansky: It is important to note that while we are consistently assessing trends and growth opportunities. We only enter a new product category, if we view the product or innovation at sustainable and profitable endeavor.

Speaker Change: For example, we've sold farmer cheese for years, a small yet profitable measures, which gives us confidence to strategically market and invest behind it today to match heightened demand within the space. One last note on our farmer cheese in April we were excited to announce that it was named as the winner in the good housekeeping 'twenty 'twenty four.

Julie Smolyansky: Back Snack award congratulations I'll now touch on some marketing and advertising updates we had great brand experience at Coachella last month. Our products were featured at the Kardashians camp push activation with air one receiving coveted influencer impression, we look forward to a packed summer with.

Julie Smolyansky: I'll now touch on some marketing and advertising updates. We had a great brand experience at Coachella last month. Our products were featured at the Kardashians' Camp Poosh activation with Air One, receiving coveted influencer impressions. We look forward to a packed summer with participation at music festivals, yoga events, and more.

Julie Smolyansky: Patient at music festivals yoga events and more.

Julie Smolyansky: We enjoy these in-person experiences as they allow us to connect with our consumers on a deeper level during their wellness journey. As part of our efforts to create a deeper connection with customers, I recently appeared on NBC's California Live to talk about celebrating Mother's Day with probiotic Lifeway products, highlighting their versatility in breakfast and brunch recipes. We remain hyper-focused on marketing that moves units. As we mentioned last quarter, we ran a large in-store promotion across many retailers, creating temporary refrigerated spaces, showcasing Lifeway-branded products, and placing them at high-traffic end caps.

Speaker Change: We enjoy these in person experiences as they allow us to connect with our consumers on a deeper level during their wellness journey.

Julie Smolyansky: Part of our efforts to create a deeper connection with customers I recently appeared on Nbc's, California lives to talk about celebrating mother's day with probiotic lifeway products highlighting their versatility in breakfast and brunch recipes.

Julie Smolyansky: We remain hyper focused on marketing that moves units.

Julie Smolyansky: As we mentioned last quarter, we ran a large in store promotion across many retailers, creating temporary refrigerated space of showcasing lifeway branded products and placing them at high traffic uncapped. This promotion was successful and we plan to initiate another similar campaign in the coming months, we continued to deepen relationships with our retailers.

Julie Smolyansky: This promotion was successful, and we plan to initiate another similar campaign in the coming months. We continue to deepen relationships with our retailers and in-store partners with the goal of making sure Lifeway products appear at interruptive moments within the store to drive trial, capture new customers who don't typically shop in our section, and boost retention rates. We are also committed to our e-commerce strategy. We are investing in targeted advertising on our retail partner sites and general e-commerce platforms, such as Instacart, with the same goal as before, to drive trial and loyalty amongst our growing consumer base. These e-commerce efforts are supported via advertising and search display and social.

Speaker Change: And in store partners with the goal of making sure lifeway products appear at interrupted moments within the store to drive trial capture new customers, who don't typically shop in our infection and boost retention rates. We are also committed to our E. Commerce strategy, we are investing in targeted advertising on our retail partners.

Julie Smolyansky: <unk> sites and general E Commerce platforms, such as <unk> with the same goal as before to drive trial and loyalty amongst our growing consumer base. These.

Speaker Change: These e-commerce efforts are supported by our advertising and search display and social we continue to partner with social media influencers, including celebrities celebrity chefs and nutrition experts with notable following.

Julie Smolyansky: We continue to partner with social media influencers, including celebrities, chefs, and nutrition experts with notable followings. Through them, we deliver widespread advertising aimed at educating consumers on our healthy products and the various recipes they can be used in. We have an in-house ambassador program that we augment with our additional influencer agency campaign to generate brand and category awareness. We then leverage our internal creative marketing team to drive demand for specific items that best match each audience profile.

Julie Smolyansky: Through them, we deliver widespread advertising aimed at educating consumers on our healthy product and the various recipes. They can be used then we have an in house Ambassador program that we augment with our additional Influencer agency campaign to generate brand and category awareness. We then leverage our internal create.

Julie Smolyansky: Marketing team to drive demand for specific items that best match each audience profile are nimble and efficient marketing strategy allows us to connect customers with lightweight products. They will enjoy the mouse, while also keeping our advertising spend in check.

Julie Smolyansky: Our nimble and efficient marketing strategy allows us to connect customers with Lifeway products they will enjoy the most, while also keeping our advertising spend in check. Now I'll touch on some distribution updates. We recently gained limited rotation for our twin pack of 32-ounce keeper at two major club stores.

Julie Smolyansky: This is a trial basis, but with strong sell-through, we could attain additional periodic rotation, which could eventually lead to an everyday placement. We are excited about our pipeline of opportunities and the continued engagement from large additional retailer locations. As we mentioned last quarter, we have recently gained incremental placement for Lifeway products at Publix, Gelson, Cubs, Erewhon, and Kroger. We are maintaining our strong relationships with key partners and are consistently seeking out distribution opportunities across a variety of channels that make sense for each of our offerings, with a focus on our flagship Lifeway Drinkable Keeper.

Julie Smolyansky: Now I'll touch on some distribution update we recently gained limited rotation for our twin pack of 32 ounce keeper at two major club stores.

Julie Smolyansky: This is a trial basis, but with strong sell through we could attain additional periodic rotation, which could eventually lead to an everyday placemat. We are excited about our pipeline of opportunities and the continued engagement from large additional retailer locations.

Julie Smolyansky: As we mentioned last quarter, we have recently gained incremental placement for lifeway products at public Gelson pub, Erewhon and Kroger, we are maintaining our strong relationships with key partners and are consistently speaking out distribution opportunities across a variety of channels that makes sense for each of our offering with a focus on.

Julie Smolyansky: Our flagship Lifeway drinkable cheaper.

Julie Smolyansky: With that, I'd like to thank you all for joining us today. The first quarter was an incredible start to 2024 as we eclipsed our quarterly sales record once again while delivering vastly improved profitability measures. I am confident that we have the right team in place to carry our strong momentum and growth throughout the year.

Julie Smolyansky: With that I'd like to thank you all for joining US today. The first quarter was an incredible start to 2024 as we eclipse a quarterly sales record once again, while delivering vastly improved profitability measures I am confident that we have the right team in place to carry our strong momentum and growth throughout the year.

Julie Smolyansky: And I am excited to continue delivering on our mission to bring best-in-class probiotic and nutritious foods to our growing base of health-conscious consumers. And on a personal note, May 4th marks what would have been Michael Smolansky, my father and Lifeway Foods founder's 77th birthday, and in the coming weeks, June 9th will mark 22 years since his sudden passing and my 22nd year as Lifeway CEO. Michael arrived in the United States as a Soviet refugee in 1976 with $116, no English language, and a young family with an unwavering pursuit of the American dream and entrepreneurial aspirations.

Speaker Change: And I am excited to continue delivering on our mission to bring best in class Probiotic and nutritious food to our growing base of health conscious consumers.

Julie Smolyansky: And on a personal note may forest, Mark what would have been Michael Smolinski, My father, and Lifeway Foods founder is 77th birthday and in the coming weeks on June 9th well Mark 22 years since his sudden passing and my 22nd year as Lifeway CEO.

Julie Smolyansky: Michael arrives to the United States as a Soviet refugee in 1976 with $116 No English language and a young family with an unwavering pursuit of the American Dream and entrepreneurial aspiration.

Julie Smolyansky: Michael was obsessed with the microbiome and the science and health benefits of kefir. He recommended kefir to everyone he met and intuitively knew it could heal the body inside and out, and he regularly quoted the research findings of Dr. Elie Metchnikoff, the godfather of immunity.

Julie Smolyansky: Michael was obsessed with the microbiome and the science and health benefits of cheaper he recommended teaser to everyone. He met and intuitively knew it could heal the body inside and out and he regularly quoted research findings of Doctor Elie Metchnikoff, the godfather of immunity.

Julie Smolyansky: Michael dreamed of a time when more people recognized the health benefits of kefir and a time when Lifeway kefir was available in every refrigerator in the United States, and every day, the team at Lifeway worked to realize that dream. I know with certainty that Michael would be proud and in awe of all that Lifeway has accomplished, and I, too, am proud of my leadership and perseverance, especially during the many challenging times over the last 22 years.

Julie Smolyansky: Michael dreamed of a time when more people recognize the health benefits of Keefer and the time when lifeway cheaper was available in every refrigerator in the United States and every day the team at Lifeway work to realize that dream I know with certainty Michael would be proud and then off of all that lifeway has accomplished and I.

Julie Smolyansky: Two I'm proud of my leadership and perseverance, especially during the many challenging times over the last 22 years. It is my privilege and honor to be at the helm of Lifeway together, we have built something truly special and I'm confident that our best days are still ahead of us with your continued support and dedication and passion.

Julie Smolyansky: It is my privilege and honor to be at the helm of Lifeway. Together, we have built something truly special, and I'm confident that our best days are still ahead of us. With your continued support and dedication and passion, there is no limit to what we can achieve. We look forward to updating you on our progress during our second quarter call in August. We hope everyone has a fun, safe, and memorable summer, and I hope you have a nice day.

Julie Smolyansky: There is no limit to what we can achieve.

Julie Smolyansky: We look forward to updating you on our progress during our second quarter call. In August we hope everyone has a fun safe and memorable summer and I Hope you have a nice day. Thank you.