Shares of Lifeway Foods (NASDAQ:LWAY) have taken a beating as the company has struggled with rising milk prices. Conventional milk remains the company's primary raw material used in the production of its kefir products. The rise in milk prices crimped margins and hurt the company's bottom-line, even though Lifeway posted record sales.
The good news is that I see milk prices subsiding as they have risen to 25-year highs. Dairy farmers are expected to ramp up milk production this summer and that will help bring down prices. A drop in the price of milk will help Lifeway's bottom-line and its share price. Besides the drop in milk prices, Lifeway has a number of growth levers it can pull,...
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