California cannabis company Lowell Farms Inc. (OTCQX:LOWLF) announced its unaudited revenue and operating results Thursday for the third quarter of 2024, reporting net revenue of $3.2 million, down 48% from $6.2 million in the same period last year. Net revenue decreased by 8% from $3.5 million in the second quarter of 2024.
"We're happy to share the progress Lowell Farms made towards expanding our footprint into the California retail market," stated co-founder and CEO Mark Ainsworth. "This strategic move marks a new chapter for us, enabling us to further showcase the strength of our brand portfolio, now in our own retail spaces and deliver an enhanced customer experience. As we focus on strategic, selective growth, we're confident that this expansion will solidify Lowell's position in the market, bringing us closer to our vision for sustainable and meaningful growth."
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Q3 Financial Highlights
- CPG revenue decreased 26% compared to the same quarter of 2023.
- Bulk product revenue from self-grown wholesale products was $nil million compared to $1.2 million for the quarter ended Sept. 30, 2023, reflecting our exit from the cultivation facility in January 2024.
- Gross margin was negative 29.0% representing a gross loss of $900,000, reflecting the sell through of higher cost inventory associated with the cultivation facility which adversely impacted cost of goods sold by $600,000 in the third quarter.
- Operating loss was $2.8 million, compared to operating loss of $2.9 million for the same period last year.
- Net loss was $3.6 million compared to a net loss of $20.2 million for the comparable period of 2023.
- Adjusted EBITDA was negative $2.1 million compared to adjusted EBITDA of negative $1.4 million for the third quarter last year.
Price Action
Lowell Farms shares closed Thursday's market session flat at $0.015 per share.
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