Q1 2024 Lowell Farms Inc Earnings Call Transcript
Key Points
- Lowell Farms Inc has successfully transitioned from using biomass from its own cultivation to procuring on the spot market, improving margins and ensuring continuous supply.
- The company has expanded its genetic lineup, enhancing product offerings and providing a broader selection to dispensary customers.
- Lowell Herb Co.'s product lines, particularly the Lowell infused 35s, have shown strong market acceptance and significant sales growth.
- Despite market challenges, Lowell Farms Inc's pre-roll sales have remained stable, demonstrating the enduring popularity and solid market presence of the product.
- The company is actively monitoring and adapting to the consolidation trend in the California dispensary market, positioning itself to capitalize on strategic opportunities.
- The Zabala cultivation site's costs and yields had previously negatively impacted margins, although this issue is being addressed.
- Sales of Lowell Herb Co's packaged flower SKUs have declined significantly, indicating challenges in maintaining previous sales levels.
- House Weed brand faced a significant sales drop due to credit holds on committed customers, impacting overall performance.
- The Cypress Cannabis brand and other smaller brands in the portfolio have experienced declines in revenue, reflecting ongoing market pressures.
- Overall net revenue and gross margin have decreased significantly, with the company reporting a net loss and negative adjusted EBITDA in Q1 2024.
Good day, everyone, and welcome to today's Lowell Farms Inc first-wuarter 2024 earnings conference call. (Operator Instructions)
Please note today's call will be recorded, and I will be standing by should you need any assistance. It is now my pleasure to turn the conference over to Bill Mitoulas with Investor Relations. Please go ahead.
Welcome to the conference call to discuss the Lowell Farms Inc financial results for the fiscal first quarter of 2024.
Before we begin, please let me remind you that during the course of this conference call, Lowell Farms Incorporated management may make forward-looking statements. These forward-looking statements are based on current expectations that are subject to risks and uncertainties that may cause actual results to differ materially from expectations.
These risks are outlined in the Risk Factors section of our Form 10-K, filed on EDGAR, and our listing statements filed on SEDAR. Any forward-looking statements should be considered in light of these factors.
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