California-based Lowell Farms Inc. (CSE: LOWL) (OTCQX: LOWLF) continued to hemorrhage millions in the first quarter of 2023, posting a $4 million loss that was accompanied by a 39% year-over-year drop in revenue.
Revenue for the quarter plunged to $7.5 million from $12.4 million the same period a year prior, and follows a nearly $25 million loss for all of 2022.
All four of the company’s revenue streams – consumer packaged goods, wholesale products, processing services, and out-of-state licensing – were down sequentially:
- Consumer packaged goods revenue fell 18% to $4.6 million from $5.6 million.
- Wholesale revenue was down 9% to $2.5 million from $2.7 million.
- Processing services dropped 79% to $115,000 from $549,000.
- Out-of-state licensing declined 23% to $222,000 from $289,000.
All but wholesale were down year-over-year, Lowell reported.
The company also announced that Chief Financial Officer Brian Shure would step down effective immediately and be replaced by Tessa O’Dowd, the company’s senior vice president of finance. O’Dowd will serve as interim CFO, according to the report released Thursday.
CEO Mark Ainsworth didn’t connect Shure’s replacement to the company’s financial fortunes, but said Lowell Farms “wishes him well in his future endeavors,” while touting O’Dowd’s “knowledgeable background in the cannabis sector.”
“Despite a challenging first quarter, we are seeing improvements that we believe indicate the cost-cutting measures and operational efficiencies that we’ve employed are paying off,” Ainsworth said in a release.
“While we did experience a decrease in revenue, we are encouraged by the positive trend in our operating loss. As we continue to navigate a challenging economic environment, we remain focused on improving our financial performance and expanding our product offerings to achieve sustainable growth,” he said.
Lowell reported that its priorities moving forward remain on sustainable growth, with a focus on its “cultivation facilities, improving operational efficiency, and refinement of biological assets,” and noted that it’s been steadily increasing production and harvesting capacities in its home state of California.
The company also highlighted that its brand recognition remains strong in several markets, with many of its branded products leading among consumers in not just its home state of California but also in Arizona, Illinois, and Massachusetts. Lowell products have just launched in Colorado and New Mexico through licensing deals, the company reported.