The following is a summary of the Lowell Farms Inc. (LOWLF) Q2 2024 Earnings Call Transcript:
Financial Performance:
Q2 2024 net revenue was $3.5 million, down 27% sequentially and 35% year-over-year.
Gross margin was reported as negative 15.7%, reflecting operational challenges and reduced volume.
Net loss for Q2 was $0.8 million, improved from a net loss of $2.9 million sequentially.Operating expenses were reduced to $1.6 million from $2.1 million sequentially as part of cost reduction initiatives.
Business Progress:
Lowell Farms exited its cultivation operations, focusing on high margin CPG products.
Added three new distributed brands and expanded sales force to grow market presence.
Engaged in co-manufacturing, generating approximately $100,000 in revenue.
Plans to utilize underused facilities more effectively and enhance operational efficiencies.
Opportunities:
Expansion of sales force and addition of new retail brands aims to drive revenue growth.
Focus on co-manufacturing and utilizing underutilized assets to reduce operational costs and improve profitability.
Risks:
Operational challenges such as critical machine failures impacting production.
Continued negative gross margin indicating operational inefficiencies.
More details: LOWELL FARMS INC IR
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