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Lifeway Foods, Inc. (LWAY) Research Update Released

New York, NY - June 2, 2014 ( newswire) Taglich Brothers released an updated research report on Lifeway Foods, Inc. (LWAY) and reiterated a Speculative Buy rating with the 12-month price target lowered to $16.45 per share from $18.60 due to reduced sector valuation . The report noted the following key investment considerations:

  • Lifeway Foods' brand awareness campaign, nationwide distribution, and European and Canadian sales should drive three-year annualized sales growth of 18.4% to $149.2 million by 2015. Our projections reflect distribution of LWAY's frozen Kefir through 6,000 US stores, up from less than 500 in 2011, distribution at London-based retailers Harvey Nichols and Holland & Barrett, and commencement of Canadian distribution in 2H14.
  • Distribution to mainstream stores such as Target nationwide and Costco in New England should support Kefir growth. US Wal-Mart supercenter grocery stores began carrying Lifeway products in 1Q13. Driving sales to existing customers was the 2013 launch of Green Kefir, Blast, and Bites for babies, and the 2014 launch of Lifeway Veggie Kefir.
  • 1Q14 gross sales (reported on 4/12/14) increased 16.2% to $32.1 million, $2.1 million below our forecast. LWAY's profit was $0.04 per share vs. $0.14 per share in the year-earlier quarter. We projected EPS of $0.01 per share. The EPS decrease from last year stems from a 35% increase in milk prices.
  • We lowered our 2014 sales forecast by $1.2 million to $128.4 million reflecting 1Q14 results. We increased our 2014 EPS projection to $0.30 from $0.24 per share due to 2H14 efficiencies from the new manufacturing facility purchased in 2013 that should exceed our prior expectations.
  • In 2015 we project sales growth of 16.2% to $149.2 million and EPS of $0.52 per share, essentially unchanged from our prior forecast. Growth reflects expanded sales in Europe and distribution in Canada. Income should benefit from a reduction in milk prices from the record highs of 1Q14.

The full report can be viewed at

Company Description:

Lifeway Foods, Inc., (LWAY) based in Morton Grove, Illinois is a manufacturer of cultured, probiotic and functional food products in the health food industry, and is America's leading supplier of the cultured dairy product known as kefir. Their products are sold to health conscious consumers through health food stores and to the mass-market consumers through supermarkets.

Taglich Brothers:

Taglich Brothers, Inc. is full-service broker dealer focused exclusively on microcap companies. The Company defines the microcap segment of the equity market as companies with less than $250 million in market capitalization. Taglich Brothers currently offers institutional and retail brokerage services, investment banking and comprehensive research coverage to the investment community.

The Taglich Brothers' Equity Research department is dedicated to providing research reports that are informative, insightful and illuminating. Reports are designed to distill volumes of investment information into a concise, straightforward format so that busy professional investors can make informed investment decisions.


The information and statistical data contained herein have been obtained from sources, which we believe to be reliable but in no way are warranted by us as to accuracy or completeness. We do not undertake to advise you as to changes in figures or our views. This is not a solicitation of any order to buy or sell. Taglich Brothers, Inc. is fully disclosed with its clearing firm, Pershing, LLC, is not a market maker and does not sell to or buy from customers on a principal basis. The above statements are the opinion of Taglich Brothers, Inc. and are not a guarantee that the target price for the stock will be met or that predicted business results for the company will occur. There may be instances when fundamental, technical and quantitative opinions contained in the reports are not in concert. We, our affiliates, any officer, director or stockholder or any member of their families may from time to time purchase or sell any of the above-mentioned or related securities. Analysts and members of the Research Department are prohibited from buying or selling securities issued by the companies that Taglich Brothers, Inc. has a research relationship with, except if ownership of such securities was prior to the start of such relationship, then an Analyst or member of the Research Department may sell such securities after obtaining expressed written permission from Compliance. All research issued by Taglich Brothers, Inc. is based on public information. Taglich Brothers, Inc. does not currently have an Investment Banking relationship with the company mentioned and was not a manager or co-manager of any offering for the company within the last three years. In September 2012 the company paid an initial monetary engagement fee of US$4,500 to Taglich Brothers, Inc. representing payment for the first three months of creation and dissemination of research reports, after which the company will pay Taglich Brothers, Inc. a monetary fee of US$1,500 per month for a minimum of three more months for such services.For further information and Taglich Brothers, Inc. ownership data please refer to each individual report.


Richard Oh

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