The following is a summary of the Lowell Farms, Inc. (LOWLF) Q4 2023 Earnings Call Transcript:
Financial Performance:
Lowell Farms Inc reported a net loss of $13.1 million in Q4, a smaller loss compared to Q3, but larger than the same period last year.
The annual net revenue for 2023 was $28.3 million, a 35% decline from 2022.
Q4 revenue was $7.5 million, a 21% sequential increase, but year-on-year it declined by 19%.Operating expenses decreased by 34% year over year, lowering from $3.4 million to $2.8 million.
Brand revenue for the year was notable with Lowell's own brands bringing in $13.8 million, third party brands contributing $2.5 million and the bulk flour revenue going up sequentially to $2 million.
The company managed to reduce its total liabilities by over $40 million during its restructuring process.
Business Progress:
Throughout 2023, Lowell Farms underwent restructuring to offset declining legal cannabis sales in California and is now focusing on manufacturing, distribution, and sales for owned and third-party cannabis brands, with a successful placing of these brands in over 650 dispensaries statewide.
The company processed approximately 116,762 pounds of third-party wet-weight flour in 2023, yielding around 5,720 pounds of finished flour, a significant increase from Q4 2022.
Lowell Farms aims to maintain lean operations for the forthcoming quarters while striving for revenue growth.
It also saw success with its consumer-packaged goods strategy, particularly with the Lowell Herb Co. brand, generating approximately $924,000 in revenue in Q4.
They are actively seeking synergies with other cannabis companies, advocating for consolidation and collaboration in the evolving California cannabis market.
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