Thank John, to joining you, good and everyone us morning today.
vastly As Lifeway once always, second report start interest continue company we improved half greatly appreciate deliver net set the again Foods. a profitability. your in for to we to I'm and record excited as a of XXXX sales phenomenal to
a execution efforts. Our team, more testament entire Lifeway not sound I their pleased with to our the and of could be results are
September were of Net With XXXX. for during the the that, of fourth The impact XXXX quarter compared X.X% quarter I third volumes by of ended results. higher extent, XXXX, third to will review million $XX.X kefir Lifeway million increases a branded our or primarily XX, an drinkable sales price now period implemented driven XXXX. $X.X increase and of the was quarter to in increase our lesser the
high-quality once new pricing better-for-you to This encouraged our loyal are line. as accelerating continued with their unit inflation customers product than demonstrates yet to offerings. Lifeway justified maintain commitment velocities of so Kefir our We see our increases more our volumes growth widespread by and our again, price in flagship acceptance driven more
the yet we our The growth, net quarter consecutive consecutive of to quarter second third Lifeway setting by this The are XX.X%. of difficult, now will considering more become growing. was XXXX to we year-over-year continue This was continue even sales. last ever. quarter record the that When quarter to when the quarter challenge our notable for XXth strong third largest compared were a more third of quarter was XXXX, year-over-year total growth up our excited
delivered Further optimism, It's underscoring including others, which are no number student they more rates, among environment of the sales macro is environment consumer the current in becoming and on consumers. strong challenging price we loan is reinstatement high repayments, the deliver factors, the secret we A sensitive. are U.S. that interest that. weighing of inflation,
that illustrated we quarter Despite and that, loyal great and key customers increases in comes XXXX, premium a our great at Lifeway's value fourth belief retailers. offering of of light implemented the in continue consumption our price the product our velocities trends affirm in our to by
quarter we Moving of XXXX, XX.X% to XX, XXXX. third primarily costs. a to of pricing reported was on, XX.X% of the volumes to a XXX compared of transportation branded profit in September the and, the the decreased higher aforementioned points expansion strong products milk extent, increases period basis This margin and increasing margin Lifeway for and price due favorable gross ended impact lesser
priority of has enhanced top and inflationary are operating profitability. pricing, We now points. subsiding along have discipline, ours gross being we with milk much profit largest a Year-to-date, XXX margin the recovery our gross consistently our with that favorable was margin basis delivering stated proactive impact, increased
enhancement. productivity Looking profitability pursuit seek and measures incremental out forward, in will margin we always of
in of decrease Cheese XXXX. due Kefir brand our of expenses, to in advertising offset as products exposure. million to period to The pursuit general the million increased third our to Lifeway G&A decreased quarter additional in small continue by Farmer increase and programs, and invest partially a $X.X we targeted expenses for selling XXXX, September expenses through in XX, marketing and strategically $X.X core administrative was million the Selling, $X Now to expenses. ended compared
net Our period $X diluted common of $X.XX compared September net was per million, of quarter million to EPS XXXX, XX, or the during third diluted reflecting share basic and income of during per and XXXX. income basic share the ended $X.X $X.XX
line line to as bottom expansion Our margin team is and flowing and efficiently impacts through top execute continued the continues subside. inflationary our
for XXXX, Capital spending spending months marginally with September ended the increased X during period aligned our to in capital XX, same the compared XXXX, year. plan the
and and three spending safety and enhancement, improvement improvement. reduction on support facility facility Grow manufacturing and product new cost capital supports is productivity. areas: Grow capital spending focused cost reduction capital, Our efficiencies, core innovation
efficiencies. and continued Our growing our reflects our business internal continue to improving capital commitment a goals as
phenomenal a quarter This for Lifeway. was
resilient, Our on our to Lifeway sales weighed metrics consumers pressures core the spite profitability of that, delivering Lifeway of some record we Because in strong measures. another product at down line positive record macro and trading that while industry. have and $X.X not prove set maintaining quarter's continue customers million, broader top unit beating of last velocities on the by
by the September XXXX, our Lifeway drinkable Kefir, our of ended $XX driven the Net XX, of was driver core quarter X% sales kefir drinkable to quarter the increased third for business. incredible XXXX. this period the industry-leading usual, compared to As million in
probiotics approximately and gut. defenses and Lifeway gut with D in support probiotics, tangy help tart protein immune and are the provide kefir healthy immunity mental come XX% support Kefir their and vitamin of microbiome customers well-being. health, to a products and from The
as function our and focus the gut of brain from microbiome's kefir the links cognitive the research serotonin body's in the well-being. intense major now which a access, emotional are gut that role happiness of We to and such of anxiety. Probiotic XX% cells and intestinal related plays the stress, comes products with and in know brain role the centers depression
And about tailwind on powerful modern more preference care as the and to learns a even focuses remains wellness consumer in health, and will their today's customer they Health their microbiome. environment. more
for for customers and why back taste coming you Our kefir are which incredible, products better keep more. is
drinkable our exactly what business is best. we kefir our Selling primary and focus do
to investments marketing behind core our strategically further through trial. time to both attract and targeted our brand awareness opportunities and We incremental will dedicate of continue distribution the products majority and
so, wellness consumers on and of tailwinds hope and kefir ourselves market. our continued kefir doing today's expansion further we In dominant health position to share the the driving better market to U.S. to global capitalize and
While as we in we growing to favorite capitalize we recently current interest core August, further investing strategy have highly sales, focused specialty a on soft in Cheese Farmer a Lifeway by culture announced on premium and cheese stores. consumer Cheese. remain a kefir many Lifeway mapped our in sought-after Farmer is
has been cult It's relative Cheese its since shows strong introduction distribution. favorite Farmer Our nationwide. to and sales a available
cheese quarter, and TikTok been on has surprise As year's one this we the Instagram. call on described trend of last of our cottage emergence recipes
versatile, recipes. Cheese be blended believe those that smooth a texture are consumers for for cottage cheese and Farmer has fit is we blended of Our logical many looking it would
running recipes. series cottage to marketing We of a campaigns are probiotic the of Cheese attention cheese capture those seeking Farmer currently to their upgrade a
this our over few interest years, past buzz, and Cheese consumers from of social media drawn the has Outside Farmer heightened year's retailers organically.
new are demand. to acting We this meet
technology have for opportunities. increase production, half improve automation plans more in equipped invest We ensure distribution by plans brand demand than production to to is and initiated the to future time cheese and new and efficiency implement
whole guava Additionally, new kefir we milk our our fat are with low continued product. organic seeing progress and
effort satisfy offerings We in will consumers continue flavors an with test our new and and to to assortment. differentiated develop
advertising now where grocery trial. consumer updates to consumers in dedicated marketing our driving Lifeway focus will increased invested remains I who and delivery on touch advertising heavily are some has options. pickup of to and the using
year. be programs intentions their set expanding for efforts marketing catch will new healthy to our additional customers the We with new QX in as they
team. to advertising digitally was are been the Instacart's Fortune's Most already from also pleased to introducing amazing opportunity their products. some consumers we company with our seen leadership leaderboard on Summit, driving appearance have I We in great familiar Lifeway I they hear have Instacart, Powerful was Coincidentally, meet where at after varieties had week I on Lifeway additional of of to that success week. trial Women recently and where the
sampling summer, in this kefir York on various focusing products program where our marketing upon activation. and continued pop-up a with SHOWFIELDS, we City, Park, embarked our Additionally, series we Bryant yoga like Brooklyn places in with a sampling experience-based other New
warm new events, staffed To will we store looking Chicago, we again season the members where are winter and With pop-up holiday report momentum, success. Festival the Mile Magnificent Lifeway with team the have including a have to the full of float having marketing ended, to are season field in forward up a pleased year. keep Lights this
on continue to TikTok, incorporating partner As Instagram recipes forward, and presence Pinterest with we experts and to offerings. including chefs celebrity our ideas nutrition influencers, or ingredient look healthy notable snack with our Lifeway plus media healthy suggest we social target
which and our social we a web media programs on are advertising, and to following increase we those digital also brand from retention meaningful campaigns, impact dollars exposure. rates We with continue positive partnered social and incentivize traffic on in-store spending have to realize our
I'm last we touch Now I on call, a couple pleased our will updates. to some report have distribution new distribution. of gained Since
I'm food announce we options Lifeway the exposure for our This look at Kefir select as are travel will working partner retail with pleased retail new will traveling. while First, airport single-serve service a brand locations. they healthy that to be customers stocking that help find and new
notice begin Midwest-based a received chain. to We in grocery new distribution also QX. of will Cheese Foods, Cub Farmer recently Orders shipping coming
in where On our distribution CVS XXX them, with at the premium roughly and call, their locations, Coast tests announced stores. we West partnership last first placed we
expect this don't be that large said, But front we to in excited traffic CVS like of volume we that the draws. to to, a As we store placed are be alluded driver. quite a
initial our introduction maintaining continued Wawa also at consistent to and We perform the XXXX. upon slightly are in velocity unit moving late above solidly
continue out opportunities for Lastly, relationships offer. our make of we and have to seek great that incremental we strong products partners, sense channels key variety we'll a continue across distribution to all retail with maintain to
Specifically, our are distribution still opportunities there of flavors, we for Farmer Cheese. top-performing ProBugs plenty believe and kefir
I once call, like marked to this highlight would up results. wrap incredible quarter To third record-breaking the again
discipline to we strong the to I'm momentum our provide as our mission core our team customers. and operating we continue Our continues food place excel while in team and to off to improve and going nutritious have deliver profitability. to enhanced I health continue finish to right of probiotic forward, well-being best-in-class maintain believe positive excited and the products XXXX the
on to to progress XXXX you momentum very course, all We you your our year-end the new listening of and call today in the for interest in forward year. call updating Lifeway look in Foods. much for Thank and and,
great you happy holiday Let and hope the to of one first be a a me I you the wish have day. season,