Lowell Farms Inc. (CSE:LOWL) (OTCQX:LOWLF), a California cannabis company, announced its unaudited revenue and operating results late Tuesday for the first quarter and fiscal year ended March 31, 2022.
First Quarter Financial Highlights
- Revenue generated for the three-month period ended March 31, 2022 was $12.4 million; an increase of 13% from Q1 2021.
- CPG revenue increased 10% sequentially, primarily due to increases in pre-roll and packaged flower revenue.
- Gross margin as reported was 12.7% in the first quarter compared to negative 12.3% sequentially and negative 13.4% year over year.
- Operating expenses were $4 million, or 33% of sales for the quarter, compared to $6.3 million or 42% of sales in the fourth quarter last year and $4.2 million or 38% of sales in the first quarter last year, reflecting cost reductions realized in the current quarter.
- The operating loss in the first quarter was $2.5 million compared to an operating loss of $8.2 million sequentially and an operating loss of $5.7 million year over year.
- Net loss for the first quarter was $4.1 million compared sequentially to a net loss of $10.0 million, which compares to a net loss of $6.7 million in the first quarter last year.
- Adjusted EBITDA in the first quarter was negative $0.9 million compared sequentially to adjusted EBITDA of negative $3.6 million and negative adjusted EBITDA of $4.6 million year over year.
The Largest Seller
“For the second quarter in a row, Lowell Farms has taken the lead as California’s largest combined seller of packaged flower and all-flower pre-rolls in California per Headset,” stated co-founder and CEO Mark Ainsworth in a press release. “You get there by selling a consistent, quality product that consumers have learned to trust and that is exactly what we sell.
“We also continue to make great strides with our out-of-state licensing partnerships, rising to become one of the top players in both of those markets for pre-rolls. That is a strong statement about the power of that brand,” Ainsworth added.
Cultivation Quality And Efficiency
Lowell Farms saw its flower production at the greenhouse continue to steadily increase, with flower products totaling 8,356 lbs during the first quarter of 2022 in comparison to 4,724 lbs in the first quarter of 2021. The Company harvested 41 times in the first quarter of 2022; in contrast to 37 harvests in the first quarter of 2021.
The average turn time for the flowering rooms has seen continued improvement and is now at 58 days in the first quarter of 2022 compared to 74 days in the first quarter of 2021.
Image By Ilona Szentivanyi.
