Lifeway Foods Inc. reported Monday that its net income fell in the third quarter as the food maker’s costs rose.
The company reported that it earned $904,837, or 5 cents per share, for the quarter versus $1.4 million, or 8 cents per share, in the same quarter of the prior year. The company said the decline in net income is due largely to higher advertising and selling expenses, as well as the higher cost for milk — the largest raw material for the company that makes Kefir products. Lifeway said the cost of milk was roughly 50 percent higher during the third quarter of this year versus the prior.
Revenue rose 3 percent to $15.9 million.
Lifeway said it expects to see continued revenue growth in the fourth quarter as a result of a recent expansion with Walmart and 7-Eleven stores and an increase in items in Safeway stores. The company also plans to roll out a new line in December and said it expects its milk costs to go down based on recent regulatory action.
Shares of Lifeway rose 28 cents, nearly 3 percent, to close at $9.97.