Lowell Farms Inc. (OTCQX:LOWLF) (CSE:LOWL) released results for the second quarter, ended June 30, 2022, revealing revenue of $13.2 million, an increase of 6% sequentially and down 13% from Q2 2021, reflecting a 51% reduction in bulk flower pricing year over year.
Q2 Financial Highlights:
-
Gross margin as reported was 11.3% in the second quarter compared to 12.7% sequentially and 37.9% year over year, reflecting strong bulk pricing in the prior year.
-
Net loss was $4.6 million compared sequentially to a net loss of $4.1 million, which compares to net income of $0.7 million in the second quarter last year, which included an insurance claim receipt of $2.6 million and favorable bulk flower pricing.
-
Adjusted EBITDA in the first quarter was negative $1.1 million compared sequentially to adjusted EBITDA of negative $0.9 million and positive adjusted EBITDA of $0.7 million year over year.
-
Operating expenses were $4.5 million or 34% of sales for the quarter, compared to $4.0 million or 33% of sales in the first quarter and $6.2 million or 41% of sales in the first quarter last year, reflecting cost reductions realized in the current year.
-
The operating loss in the second quarter was $3.0 million compared to an operating loss of $2.5 million sequentially and an operating loss of $0.5 million year-over-year, reflecting significantly lower bulk pricing year over year.
-
CPG revenue declined 18% sequentially and 23% from the prior year, as the company held pricing stable and reorganized its CPG offering.
“California cannabis is in the middle of a fight for survival. There are fewer chairs at the table than there are attendees,” stated chairman of the board George Allen. We will prevail through innovation and branding, and not by lowering our prices. While the second quarter is a disappointment, we are well prepared for our upcoming 35’s launch in September. ”
CEO Mark Ainsworth, stated “To compete with the illicit market, we have to do it with quality and value. Our whole plan is built on three pillars: exceptionally good cannabis, a brand that people trust, and automation. We are closer than ever to having all three.”
Photo by Tim Foster on Unsplash
Related News
Schwazze To Bring Lowell Smokes To Its Colorado And New Mexico Cannabis Dispensaries
Lowell Farms Announces Unaudited Q1 2022 Financial And Operational Results
