Lifeway Foods Inc (LWAY) 2022 Q4 法說會逐字稿

Good afternoon. Welcome to Lifeway Foods' Fourth Quarter and Full Year 2022 Earnings Conference Call. 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 afternoon. 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.

下午好。歡迎來到 Lifeway Foods 的第四季度和 2022 年全年收益電話會議。今天與我通電話的是總裁兼首席執行官 Julie Smolyansky。到現在為止，每個人都應該可以看到今天下午發布的新聞稿。如果您還沒有收到新聞稿，可以在 Lifeway 網站 www.lifewayfoods.com 的投資者關係部分找到。該公司網站上將提供此次通話的錄音。

Before we begin, we would like to remind everyone that the prepared remarks contain forward-looking statements, and management may make additional forward-looking statements, in response to your questions. The words believes, expect, anticipate and other similar expressions generally identify forward-looking statements. 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.

在我們開始之前，我們想提醒大家，準備好的評論包含前瞻性陳述，管理層可能會做出額外的前瞻性陳述，以回應您的問題。相信、期望、預期和其他類似的表達方式通常可以識別前瞻性陳述。這些陳述不保證未來的表現，因此，不應過分依賴它們。實際結果可能與任何前瞻性陳述中預測的結果存在重大差異。

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 would like to turn the call over to Lifeway's Chief Executive Officer, Julie Smolyansky.

Lifeway 不承擔更新今天發布或電話會議中可能做出的任何前瞻性預測的義務。此處包含的所有前瞻性陳述僅在本次電話會議之日有效。因此，我想將電話轉給 Lifeway 的首席執行官 Julie Smolyansky。

Thank you, John, and good afternoon to everyone joining us today. As always, we greatly appreciate your interest in Lifeway Foods. I'm thrilled to be speaking with you today, regarding our full year 2022 earnings results. A record-setting year of growth for our business. Before discussing our strong results, I would like to first call out the incredible efforts of the entire Lifeway team whose efforts and impressive execution allowed us to deliver seamlessly for our valued partners and customers, despite the challenging industry-wide operative environment presented to us this year.

謝謝你，約翰，今天加入我們的每個人下午好。一如既往，我們非常感謝您對 Lifeway Foods 的關注。我很高興今天能與您談論我們 2022 年全年的收益結果。我們業務增長創紀錄的一年。在討論我們的強勁業績之前，我想首先感謝整個 Lifeway 團隊的難以置信的努力，他們的努力和令人印象深刻的執行力使我們能夠無縫地為我們重要的合作夥伴和客戶提供服務，儘管整個行業的運營環境給我們帶來了挑戰。年。

Quite simply, we crushed it in 2022 and delivered the highest recorded year of sales in our company's history. This top line record reflects the efforts of the great team we have in place, as they effectively executed on our Lifeway 2.0 strategy throughout the year and the continued dominance of our core Lifeway Kefir assortment. This was my 21st year as the CEO at Lifeway Foods. And on the back of our strongest year yet, I couldn't be more pleased with our business, as it stands today.

很簡單，我們在 2022 年打破了它，創造了公司歷史上最高的銷售額。這一頂級記錄反映了我們優秀團隊的努力，因為他們全年有效地執行了我們的 Lifeway 2.0 戰略，以及我們核心 Lifeway Kefir 系列的持續主導地位。這是我在 Lifeway Foods 擔任首席執行官的第 21 個年頭。在我們最強勁的一年的支持下，我對我們今天的業務感到非常滿意。

Now I'll review our full year 2022 results. Our record high annual net sales were $141.5 million for the year ended December 31, 2022, an increase of $22.5 million or 18.9% compared to the prior year. The net sales increase was primarily driven by our higher volumes of our branded drinkable kefir and the impact of price increases implemented during the year and, to a lesser extent, the favorable impact of our acquisition of GlenOaks Farms during the third quarter of 2021.

現在我將回顧我們 2022 年的全年業績。截至 2022 年 12 月 31 日止年度，我們創紀錄的年度淨銷售額為 1.415 億美元，比上年增加 2250 萬美元或 18.9%。淨銷售額的增長主要是由於我們品牌的可飲用開菲爾的銷量增加以及年內實施的價格上漲的影響，以及在較小程度上我們在 2021 年第三季度收購 GlenOaks Farms 的有利影響。

Year-over-year, our net sales grew every single quarter this year, a result of our enhanced focus on our flagship Lifeway Kefir product with the fourth quarter, marking our 13th consecutive quarter of growth. Our growth is even more impressive when you consider we are lapping a markedly strong year in 2021. When compared to 2020, our record net sales grew 38.8%, and we're up 51.1% when compared to 2019.

與去年同期相比，我們今年的淨銷售額每個季度都在增長，這是我們在第四季度加強了對我們的旗艦 Lifeway Kefir 產品的關注的結果，這是我們連續第 13 個季度實現增長。當您認為我們在 2021 年取得了顯著強勁的增長時，我們的增長更加令人印象深刻。與 2020 年相比，我們創紀錄的淨銷售額增長了 38.8%，與 2019 年相比增長了 51.1%。

While we did implement price increases this year, it's important to note our premium better-for-you offering grew in both consumption and dollars for the year. These increases in Lifeway Kefir volumes despite a higher price tag illustrate the success of our customer acquisition strategies and the stickiness of our active customers. In addition, we reported a gross profit margin of 18.9% for the year ended December 31, 2022. As we've discussed throughout the year, like our industry peers, we are not immune to the broad macro headwinds that have affected our space.

雖然我們今年確實實施了價格上漲，但重要的是要注意我們優質的 better-for-you 產品在這一年的消費和美元方面都有所增長。儘管價格更高，但 Lifeway Kefir 銷量的增加說明了我們的客戶獲取策略的成功以及我們活躍客戶的粘性。此外，我們報告截至 2022 年 12 月 31 日止年度的毛利率為 18.9%。正如我們全年討論的那樣，與我們的行業同行一樣，我們也不能倖免於影響我們空間的廣泛宏觀逆風。

This year, we incurred incremental costs from inflationary price increases on raw materials, particularly milk, our core commodity as well as packaging and freight. As we've disclosed previously, we thoughtfully took price throughout this year to account for the COGS inflation in an effort to minimize the negative impact to our bottom line and margin performance, while we pursued further sales growth.

今年，我們因原材料價格上漲而產生了增量成本，尤其是牛奶、我們的核心商品以及包裝和運費。正如我們之前披露的那樣，我們在今年全年深思熟慮地採用價格來解釋 COGS 通脹，以盡量減少對我們的底線和利潤率表現的負面影響，同時我們追求進一步的銷售增長。

Additionally, I'm pleased to say that we are now beginning to see milk prices stabilize, which will keep a close eye on, and which could lead to more favorable milk pricing for our business later in the year. We intend to continue to prioritize margins moving forward and search for incremental productivities to keep them as stable as possible.

此外，我很高興地說，我們現在開始看到牛奶價格趨於穩定，我們將密切關注這一點，這可能會在今年晚些時候為我們的業務帶來更優惠的牛奶定價。我們打算繼續優先考慮未來的利潤率，並尋找增量生產力以盡可能保持穩定。

Moving on to expenses. Selling, general and administrative expenses increased $1.2 million to $23.9 million for the year ended December 31, 2022, compared to $22.7 million in the prior year. The increase is primarily result -- a result of increased legal and professional fees, which include expenses related to the fiscal year 2020 Form 10-K restatement.

繼續討論費用。截至 2022 年 12 月 31 日止年度，銷售、一般和行政費用增加 120 萬美元至 2390 萬美元，而上一年為 2270 萬美元。增加的主要原因是法律和專業費用增加，其中包括與 2020 財年 10-K 表格重述相關的費用。

With the increased SG&A, our selling expenses increased $207,000 compared to the prior year, as we maintained high levels of strategic investments behind our core products to expand awareness and drive velocities. Our net income during the year ended December 31, 2022, was $0.9 million reflecting an EPS of $0.06 per basic and diluted common share compared to the net income of $3.3 million reflecting an EPS of $0.21 per basic and diluted common share, during the same period in 2021.

隨著 SG&A 的增加，我們的銷售費用比上一年增加了 207,000 美元，因為我們在核心產品背後保持高水平的戰略投資以擴大知名度和推動速度。截至 2022 年 12 月 31 日止年度，我們的淨收入為 90 萬美元，反映每股基本和稀釋普通股每股收益為 0.06 美元，而同期的淨收入為 330 萬美元，反映每股基本和稀釋普通股每股收益為 0.21 美元2021年。

With focus on company efficiencies and potential relief from higher milk pricing, we remain intent on stabilizing and improving our margins and expect to see progress on our profitability metrics. Capital spending increased approximately $1.5 million to $3.4 million during the year ended December 31, 2022. Our capital spending is focused on 3 core areas: growth capital, cost reduction and facility improvements.

通過關注公司效率和牛奶價格上漲的潛在緩解，我們仍然致力於穩定和提高我們的利潤率，並期望看到我們的盈利指標取得進展。在截至 2022 年 12 月 31 日的一年中，資本支出增加了約 150 萬美元至 340 萬美元。我們的資本支出主要集中在 3 個核心領域：增長資本、降低成本和改善設施。

The growth capital supports new product innovation and enhancements. Spend on cost reduction and facility improvements support manufacturing efficiencies, safety and productivity. Our continued capital commitment reflects our goals as a business to continue growing and improving our internal efficiencies.

成長資本支持新產品的創新和改進。用於降低成本和改進設施的支出有助於提高製造效率、安全性和生產率。我們持續的資本承諾反映了我們作為一家企業的目標，即繼續發展和提高我們的內部效率。

To summarize, 2022 was a remarkable record-breaking year for Lifeway Foods. Our brand delivered growth in each and every single quarter of the year, leading to our highest recorded annual sales of $141.5 million.

總而言之，2022 年對 Lifeway Foods 來說是破紀錄的一年。我們的品牌在一年中的每個季度都實現了增長，從而使我們的年銷售額達到了 1.415 億美元的最高記錄。

As far as the drivers for sales growth, we continue to strategically invest in sales and marketing with a focus on promoting retention and growing awareness of our core Lifeway Kefir product. We continue to enhance our relationships with current retail partners and customers, while also pursuing incremental distribution, highlighted by our convenience channel wins in the third quarter. Additionally, we put dollars behind our innovation strategy, highlighted by some of our recent product launches, that I will discuss momentarily.

就銷售增長的驅動因素而言，我們繼續對銷售和營銷進行戰略投資，重點是提高我們核心 Lifeway Kefir 產品的保留率和知名度。我們繼續加強與現有零售合作夥伴和客戶的關係，同時也追求增量分銷，第三季度我們的便利渠道勝利凸顯了這一點。此外，我們將資金投入到我們的創新戰略中，這在我們最近發布的一些產品中得到了強調，我將在稍後討論。

While the numbers themselves are strong, our performance is even more notable, given the current consumer backdrop. With high inflation and the anticipation of a recession on the minds of consumers, there is an expectation that they may begin to trade down or out of more premium products to value offerings. That said, our strong net sales, which were weighted to the back half of the year, accompanied by positive consumption and accelerating velocities in certain key retailers demonstrate that our resilient customers do not seem willing to sacrifice their commitment to health and wellness, in spite of the increased macro pressures.

雖然數字本身很強勁，但考慮到當前的消費者背景，我們的表現更加引人注目。由於高通脹和消費者心目中的經濟衰退預期，人們預計他們可能會開始降價交易或放棄更優質的產品，轉而提供更有價值的產品。也就是說，我們強勁的淨銷售額（佔下半年的權重），伴隨著積極的消費和某些主要零售商的加速速度表明，我們有彈性的客戶似乎不願意犧牲他們對健康和保健的承諾，儘管宏觀壓力加大。

In fact, recent data has shown that new customers to the Lifeway story are actually delivering greater velocities than previous customers who have turned. Our customer base commitment to fortifying their immune system with healthy products and the strength of our new consumers should prove to be a tailwind, as we look ahead.

事實上，最近的數據表明，Lifeway 故事的新客戶實際上比以前的客戶提供了更快的速度。展望未來，我們的客戶群承諾用健康的產品增強他們的免疫系統，而我們新消費者的實力應該會成為順風。

During 2022, Lifeway grew in double digits by both consumption and total dollars, putting us in a strong market position. With the acquisition of GlenOaks Farms and the growth of Lifeway brands, Lifeway Foods is now the ninth largest yogurt manufacturer in the United States by sales. We have worked to bring new customers to the category, retain existing customers and increased the number of items purchased by current customers. Panel data from IRI shows that likely increased loyalty for existing shoppers to 75%, earning the top spot in adult yogurt and kefir drink segment.

2022 年，Lifeway 的消費和總收入均實現兩位數增長，使我們處於強大的市場地位。隨著對 GlenOaks Farms 的收購和 Lifeway 品牌的發展，Lifeway Foods 現在是美國銷售額排名第九的酸奶製造商。我們努力為該類別帶來新客戶，留住現有客戶並增加現有客戶購買的商品數量。 IRI 的面板數據顯示，現有購物者的忠誠度可能會提高到 75%，在成人酸奶和開菲爾飲料領域名列前茅。

The first-time -- and first-time Lifeway buyers repeated at an impressive 35% rate. Panel data focused on shopper demographics show that our inclusive market efforts also produce gains among the Hispanic and Asian households. As our purchase velocities have risen, our ACV, a measure of distribution has also grown in the past year. We have increased our distribution 2.4 points, within the multi-outlet category and have increased our distribution 7.3 points in the natural segment.

Lifeway 的首次購買者和首次購買者的重複購買率高達 35%，令人印象深刻。專注於購物者人口統計數據的面板數據表明，我們在包容性市場方面的努力也在西班牙裔和亞裔家庭中產生了收益。隨著我們購買速度的提高，我們的 ACV（一種分配指標）在過去一年中也有所增長。我們在多渠道類別中增加了 2.4 個點，在自然部分中增加了 7.3 個點。

Lifeway's Kefir products provide customers with probiotics, vitamin D and protein that help to support their gut health, immunity and mental well-being. The probiotics in kefir support a healthy microbiome and approximately 80% of immune defense has come from the gut.

Lifeway 的 Kefir 產品為客戶提供益生菌、維生素 D 和蛋白質，有助於支持他們的腸道健康、免疫力和心理健康。開菲爾中的益生菌支持健康的微生物組，大約 80% 的免疫防禦來自腸道。

Probiotic products such as kefir are the focus of intense research related to the microbiomes' role in stress, depression and anxiety. We now know that up to 90% of the body serotonin comes from gut cells and the gut brain access, which links the emotional and cognitive centers of the brain with our intestinal function, and plays a major role in happiness and well-being.

開菲爾等益生菌產品是與微生物組在壓力、抑鬱和焦慮中的作用相關的深入研究的焦點。我們現在知道，體內高達 90% 的血清素來自腸道細胞和腸腦通道，它將大腦的情緒和認知中心與我們的腸道功能聯繫起來，對幸福和幸福起著重要作用。

As today, customers learn and focus more on their health, they will care even more about those facts and the bacteria in their microbiome, which should be of great benefit to Lifeway product portfolio. With the dominant market share and 36 years of experience within the space, Lifeway commands the U.S. kefir industry, and we don't expect to lose that strong foothold anytime soon.

今天，客戶更多地了解和關注他們的健康，他們將更加關心這些事實和他們微生物組中的細菌，這應該對 Lifeway 產品組合大有裨益。憑藉在該領域的主導市場份額和 36 年的經驗，Lifeway 控制著美國開菲爾行業，我們預計不會很快失去這一強大的立足點。

With that, we believe we are best positioned to capitalize on this continued growth of the addressable market within kefir. While we have been nimble in the path to adapt to customer trends and behavior through innovation. A recent example being the rapid onset of alternative dairy products, the core driver of our business has always been our industry-leading drinkable Lifeway Kefir and it continues to grow with the market.

有了這一點，我們相信我們最有能力利用開菲爾潛在市場的持續增長。雖然我們在通過創新適應客戶趨勢和行為的道路上一直很靈活。最近的一個例子是替代乳製品的迅速興起，我們業務的核心驅動力一直是我們行業領先的可飲用 Lifeway Kefir，它會隨著市場的發展而繼續增長。

After a notably strong year in 2021, our drinkable kefir net sales increased $14.4 million or 15% in 2022, when compared to the prior year. Selling Lifeway Kefir is what we do best. It's healthy, delicious and extremely dynamic in its uses, and it's exactly why our customers love us and keep coming back. As we look ahead, we will keep pushing and pursuing incremental brand awareness and exposure with continued marketing investments, assess further distribution opportunities in current and new channels and innovate within the drinkable kefir space to increase the scope of our products within the market.

在 2021 年表現強勁之後，與上一年相比，我們的飲用開菲爾淨銷售額在 2022 年增加了 1440 萬美元或 15%。銷售 Lifeway Kefir 是我們最擅長的。它健康、美味且用途極富活力，這正是我們的客戶喜歡我們並不斷光顧的原因。展望未來，我們將通過持續的營銷投資繼續推動和追求提高品牌知名度和曝光率，評估當前和新渠道的進一步分銷機會，並在可飲用開菲爾領域進行創新，以擴大我們產品在市場上的範圍。

An example of innovation within Lifeway is illustrated by our latest flavor launches. Guava Lowfat kefir, Organic strawberry-banana Whole Milk Kefir, Organic Black Cherry Whole Milk Kefir, along with seasonal flavors, Rainbow Cake and Lifeway Kefir and Campfire S'mores Lifeway Kefir. All recently introduced at Natural Products Expo West 2023, in early March. These new products further diversify Lifeway's portfolio and present an opportunity to increase SKUs and distribution within our retail partners. The reactions we received from retailers and customers from taste tests at Expo West were extremely positive, and we expect some of these new products to hit shelves in April.

我們最新推出的口味說明了 Lifeway 創新的一個例子。番石榴低脂開菲爾、有機草莓香蕉全脂開菲爾、有機黑櫻桃全脂開菲爾以及時令風味的彩虹蛋糕和生命之路開菲爾以及 Campfire S'mores 生命之路開菲爾。所有這些都是最近在 3 月初的 Natural Products Expo West 2023 上推出的。這些新產品進一步豐富了 Lifeway 的產品組合，並為我們的零售合作夥伴提供了增加 SKU 和分銷的機會。我們在 Expo West 的口味測試中從零售商和顧客那裡收到的反應非常積極，我們預計其中一些新產品將在 4 月份上架。

I'll now touch on some of the marketing and advertising strategies. In 2022, we received over 300 media placements and target outlets, including features with Fox Business, Forbes, Good Housekeeping, mindbodygreen, Women's Health and more. Resulting in a potential reach of more than 1 billion impressions. Our strong PR presence is supported by paid omnichannel advertising campaigns that highlight the benefits of kefir and tell the Lifeway brand story. We are currently running a targeted campaign in focused markets to help us build awareness and drive trial. This advertising effort is a combination of linear broadcast, CTV, digital and integrations in both English and Spanish. The campaigns conclude at the end of Q1, and I look forward to sharing more detail in our next call.

我現在將談談一些營銷和廣告策略。 2022 年，我們收到了 300 多個媒體投放和目標媒體，包括 Fox Business、Forbes、Good Housekeeping、mindbodygreen、Women's Health 等的特寫。產生超過 10 億次展示的潛在影響力。我們強大的公關形象得到付費全渠道廣告活動的支持，這些廣告活動突出了開菲爾的好處並講述了 Lifeway 品牌故事。我們目前正在重點市場開展有針對性的活動，以幫助我們提高知名度並推動試用。這項廣告工作結合了線性廣播、CTV、數字以及英語和西班牙語的整合。這些活動在第一季度末結束，我期待在我們的下一次電話會議中分享更多細節。

As I previously mentioned, in late 2021, we began a marketing program with the Immersive Van Gogh experience, a national exhibition showcasing Van Gogh's artwork through lights, music, movement and imagination in 22 major U.S. cities. This provided opportunities for in-person experiential marketing that allowed us to connect with our customers, on a deeper level on their path to wellness.

正如我之前提到的，在 2021 年底，我們開始了一項營銷計劃，即沉浸式梵高體驗，這是一個全國性展覽，在美國 22 個主要城市通過燈光、音樂、運動和想像力展示梵高的藝術作品。這為面對面的體驗式營銷提供了機會，使我們能夠在更深層次上與客戶建立聯繫，了解他們的健康之路。

We wrapped up the campaign in January of 2023, with a total of over 50 million paid in organic media impressions, over 700 yoga classes and more than 1,000 sampling sessions. Our events team is now focused on the Lifeway Kefir shop pop-up experience in Miami Beach. This Lifeway branded Cafe will give visitors a chance to taste, a wide variety of smoothies made with Lifeway Kefir and Lifeway Oat. Located on very busy Lincoln Road, this destination location is a great way for us to connect with consumers in a warm climate, while many in the rest of the country are still experiencing chilly weather. We look forward to serving lots of smoothies and sharing the Lifeway story with Miami locals and vacationers, from now until May.

我們在 2023 年 1 月結束了該活動，總共支付了超過 5000 萬的自然媒體印象、700 多個瑜伽課程和 1000 多個採樣課程。我們的活動團隊現在專注於邁阿密海灘的 Lifeway Kefir 快閃店體驗。這家 Lifeway 品牌咖啡館將為遊客提供品嚐各種由 Lifeway Kefir 和 Lifeway 燕麥製成的冰沙的機會。這個目的地位於非常繁忙的林肯路，是我們在溫暖氣候下與消費者建立聯繫的絕佳方式，而該國其他地區的許多人仍在經歷寒冷的天氣。從現在到 5 月，我們期待提供大量冰沙並與邁阿密當地人和度假者分享 Lifeway 的故事。

Additionally, we continue to work with notable chefs, influencers and nutrition experts to suggest healthy ingredient swaps, recipes and snack ideas incorporating Lifeway products, across our social media. Lifeway social channels now have well over 1 million followers, and our brand website sessions are up significantly when compared to the prior year. We partner with these digital campaigns and with in-store programs to attract new customers to the brand, as well as incentivize customer retention, and we look forward to strengthening our relationships with these retailers in 2023, as we introduce new items.

此外，我們繼續與著名的廚師、有影響力的人和營養專家合作，在我們的社交媒體上建議健康的配料交換、食譜和零食創意，並結合 Lifeway 產品。 Lifeway 社交渠道現在擁有超過 100 萬粉絲，與上一年相比，我們的品牌網站訪問量顯著增加。我們與這些數字活動和店內計劃合作，以吸引新客戶加入該品牌，並激勵客戶保留，我們期待在 2023 年推出新產品時加強與這些零售商的關係。

Now I'll touch on some of the operational highlights from the year. In the first half of the year, we had 3 big wins. First, regaining distribution at the fresh market after a 3-year absence; second, earning a rotation at Costco Midwest; and third, converting Food Lion from private label offerings to our Lifeway branded products. Each of these wins have further aided our efforts in continued growth and enhancing Lifeway's customer awareness.

現在我將談談這一年的一些運營亮點。上半年，我們取得了3場大勝。首先，時隔3年重獲生鮮市場分銷；第二，在 Costco Midwest 獲得輪換機會；第三，將 Food Lion 從自有品牌產品轉變為我們的 Lifeway 品牌產品。這些勝利中的每一個都進一步幫助我們在持續增長和提高 Lifeway 的客戶意識方面所做的努力。

In the second half of the year, our most notable win was our penetration into the convenience category. In the third quarter, we announced distribution deals with Pratt Pantry, an organ-based chain and Wawa, a prominent convenience chain in the Northeast. We began shipping with Wawa in late November, and the results have been encouraging with solid velocity metrics so far. Since our inception, Lifeway has traditionally grown its operations within the grocery channel. This penetration into small-format convenience, reflects a new distribution strategy we are assessing as we are looking to increase our presence in high visibility away from home location.

今年下半年，我們最顯著的勝利是我們對便利品類的滲透。在第三季度，我們宣布了與 Pratt Pantry 的分銷協議，Pratt Pantry 是一家風琴連鎖店，Wawa 是東北地區著名的便利連鎖店。我們於 11 月下旬開始使用 Wawa 出貨，到目前為止，穩定的速度指標令人鼓舞。自成立以來，Lifeway 一直在雜貨渠道內發展業務。這種對小型便利店的滲透反映了我們正在評估的一種新的分銷策略，因為我們正在尋求增加我們在遠離家鄉的地方的高知名度。

Additionally, though not a new strategy, I'd like to touch on Lifeway's non-U.S. business. As a reminder, while the United States accounts for nearly all of our business, we also distribute to Mexico, Ireland and France. We have recently secured placements at casino stores in France, and our performance in Mexico was notable, with sales up 11.2%. In the year ahead, we aim to evaluate further opportunities to expand distribution at traditional grocery, as well as convenience and small formats. In an effort to get our brand name in front of as many relevant customers as we can.

此外，雖然不是新戰略，但我想談談 Lifeway 的非美國業務。提醒一下，雖然美國幾乎佔據了我們所有的業務，但我們也分銷到墨西哥、愛爾蘭和法國。我們最近在法國的賭場商店獲得了安置，我們在墨西哥的表現也很出色，銷售額增長了 11.2%。在未來一年，我們的目標是評估進一步擴大傳統雜貨店分銷的機會，以及便利店和小店面。努力讓我們的品牌出現在盡可能多的相關客戶面前。

In summary, 2022 was nothing short of outstanding. This record-breaking year has given us even more confidence in the long-term strength of our business and the ongoing demand of our flagship Lifeway Kefir. We remain committed to growth, look forward to continuing this wonderful momentum into 2023, and believe we are on the right path to achieving our primary targets. Delivering profitable and strategic growth to our investors while furthering our mission to provide best-in-class probiotic and nutritious foods to improve the health and well-being of our customers.

總之，2022 年非常出色。這個破紀錄的一年讓我們對我們業務的長期實力和我們旗艦產品 Lifeway Kefir 的持續需求更有信心。我們仍然致力於增長，期待將這種美妙的勢頭延續到 2023 年，並相信我們正走在實現主要目標的正確道路上。為我們的投資者提供盈利和戰略增長，同時進一步履行我們的使命，即提供一流的益生菌和營養食品，以改善我們客戶的健康和福祉。

Thank you all very much for listening to the call today and, more importantly, for your interest in Lifeway Foods. I look forward to providing you further updates on our growth and in our first quarter of 2023 earnings call. Have a great evening.

非常感謝大家今天的電話會議，更重要的是，感謝您對 Lifeway Foods 的關注。我期待在 2023 年第一季度的財報電話會議上為您提供有關我們增長的進一步更新。祝你有個愉快的夜晚。