The following is a summary of the Lowell Farms, Inc. (LOWLF) Q1 2024 Earnings Call Transcript:
Financial Performance:
Lowell Farms reported a decline in Q1 2024 net revenue by 35% both sequentially and year-over-year to $4.9 million.
Their CPG revenue also decreased by 10% sequentially and 11% annually to $4.1 million.
There was a reported negative gross margin of 17% due to expenses related to the exit from the cultivation facility and reduced volume at the processing facility.
The company suffered an operating and net loss of $2.9 million with an adjusted EBITDA at negative $1.1 million in the first quarter.
Business Progress:
Lowell Farms successfully transitioned away from their own biomass harvested at Zabala cultivation site to procuring biomass from the spot market, which led to improved margins and a diverse product offering.
They are actively monitoring the California cannabis market's significant consolidation as a strategic opportunity.
Following discontinuation of direct farming operations, the company is exploring subleasing options for effective utilization of additional capacity.
Their third-party distribution services are experiencing robust demand, with plans to expand the portfolio.
Lowell Herb Co registered over 42% quarterly growth with their Lowell infused 35's line.
More details: LOWELL FARMS INC IR
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.