Lowell Farms Stock Slightly Up On Announcing 37% QoQ Spike In Q2 2021 Revenue And Record Cannabis Cultivation Output

Lowell Farms Inc. LOWL LOWLF announced revenue and operating results for the second quarter ended June 30, revealing a 53% year-over-year and 37% quarter-over-quarter increase in revenue to $15.2 million. Shares traded down roughly 7.74% at $1.20 per share on Tuesday, midday.

Based in Salinas, California, the company said Monday that the sequential revenue growth could be mainly attributed to large cultivation yields and a strong increase in demand for the Lowell branded products.

Lowell Farms also said that the flower production at the greenhouse ramped up steadily during the quarter, exceeding the guidance of 8,500 to 9,000 lbs during the quarter by a healthy margin at 9,553 lbs, a 102% increase over the preceding quarter.

"We have a lot to be proud of, but I am particularly excited about the continued progress we are making at the cultivation level," Lowell's CEO Mark Ainsworth said. "We have spent a good portion of Q2 dialing in our automated environmental systems to continue to reach increased yields and potencies, and right now, we are collecting important data to provide the optimal conditions for each particular genetics."

Q2 2021 Financial Highlights

• The gross margin was 38% compared to a negative margin of 13% in both the second quarter of last year and the previous period.
• Operating loss totaled $473 000 compared to operating losses of $4.8 million and $5.7 million in the same period of last year and the first quarter of 2021, respectively.
• $2.6 million insurance recovery associated with plant stress incurred in 2020.
• Net income amounted to $731 000 compared to a net loss of $8.8 million and $6.7 million in the corresponding quarter of 2020 and the prior period, respectively. The current quarter includes proceeds from insurance claims of $2.6 million.
• Adjusted EBITDA, a non-GAAP financial measure, was $740 000, excluding insurance claim proceeds, compared to negative adjusted EBITDA of $7.2 million in the second quarter of last year.
• As of June 30, the company had roughly $140.6 million in total assets.

More recent news from Lowell Farms:

Lowell Farms' New Cannabis Processing Facility Has Plans To Process 250 Tons Of Flower Annually

Lowell Farms, Ascend Wellness Partner To Bring Lowell Smokes To Massachusetts, Illinois

Photo: Courtesy of Ryan Lange on Unsplash