Debra BorchardtAfter the markets closed on Tuesday, Lowell Farms Inc. (CSE: LOWL; OTCQX: LOWLF) announced its unaudited earnings for the first quarter of 2024 ending March 31, 2024. Lowell Farms to investors that its revenue fell by 35% to $4.9 million versus last year’s revenue of $7.5 million in the same period. The decrease was attributed to lower bulk flower revenue and reduced volume at the company’s processing facility.
On a positive note, the net losses were trimmed to $2.9 million or ($0.15) per share for the quarter versus a net loss of $4 million or ($0.33) per share for the first quarter in 2023. It was a big improvement over the net loss in the fourth quarter of 2023, which was $13.1 million.
Cash and cash equivalents fell to $1.1 million from $2.3 million at the end of 2023.
“Our recent strategic decisions have thoughtfully bolstered our manufacturing and distribution capabilities, allowing us to navigate the ever-evolving industry landscape. By optimizing efficiencies, we’re poised for steady growth and positive impact,” said Co-Founder and Chief Executive Officer Mark Ainsworth. “Our team remains committed to the strategic shifts the company has made in the previous quarters and we expect to see meaningful change.”
The company noted on its earnings call that its House Weed brand faced significant challenges, with sales dropping by about 60% due to credit holds on committed customers.
When asked about exiting the company’s Zabala cultivation facility Ainsworth said, “The exit from the Zabala site initially negatively impacted our margins due to high cultivation costs and lower yields. However, by the end of Q1, we improved margins by sourcing biomass on the spot market, which also allowed us to expand our genetic lineup and offer a wider range of products to our customers without any supply interruptions.”
The company is considering renting out the facility since it is shifting away from cultivation. It is also continuing to work with farms to process products at harvest time.
