Lowell Farms Touts Post-Merger Success, Cannabis Co. Generates $11M In Q1 Revenue

Vertically integrated cannabis company Lowell Farms Inc. LOWL LOWLF said Tuesday it has generated $11 million in revenue during the first quarter of the 2021 fiscal year, representing an increase of 17% year-over-year.

The Salinas, California-based company, formerly known as Indus Holdings Inc., recently bought Lowell Herb Co., a California-based organic cannabis brand, in a $39 million cash and stock deal and opted to change its name.

“We are seeing promising results from the sales of the recently acquired Lowell Herb Co. branded products,” Lowell Farms CEO Mark Ainsworth disclosed.

“While we saw improvements in revenue year-over-year, the results showcased in this quarter still reflect the headwinds we encountered in 2020,” he commented on the first-quarter results.

Here’s a breakdown of what first-quarter earnings report showed:

• Adjusted EBITDA (non-GAAP measure) came in negative at $4.6 million, representing a slight improvement from the same period last year.
• Operating expenses totaled $4.2 million, compared to $5.4 million in the corresponding quarter of the prior year.
• The gross margin was negative 13% versus a negative margin of 18% in the first quarter of 2020.
• Operating loss amounted to $5.7 million compared to an operating loss of $7.1 million in the same period a year ago.

Recent Moves

In April, Lowell Farms teamed up with Ascend Wellness Holdings to introduce Lowell Farms’ iconic Lowell Smokes brand to AWH retail locations in Massachusetts and Illinois through a strategic licensing deal.

Lowell Farms also strengthened its leadership recently by appointing Bryan Dunmire to supervise its production. Dunmire joined the company last year as senior vice president of strategy.

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Photo by Esteban Lopez on Unsplash