Lowell Farms Services was the one area of improvement at the company.
Lowell Farms Inc. (CSE: LOWL) (OTCQX: LOWLF) announced unaudited financial results as revenue fell in the third quarter ended Sept. 30.
Lowell reported that its net revenue dropped 28% to $6.2 million, versus last year’s $8.7 million for the same time period. Revenue dropped sequentially by 12% from the second quarter.
The net loss jumped to $20.2 million versus last year’s net loss of $4.8 million and the second quarter’s net loss of $0.1 million. The operating loss was $2.8 million versus an operating loss of $5.2 million in the 2022 third quarter, a 46% improvement. The operating loss for the second quarter was $2.6 million.
“One year into our ambitious restructuring strategy, the decisions we’re making have enabled us to eliminate millions in debt, and secured rights to advance the Lowell brand, positioning ourselves for growth and success,” Chairperson Ann Lawrence said. “The completion of this deal allows the company to refocus on expanding our portfolio while continuing to build strong partnerships within the California cannabis market.”
Revenue Declines
Lowell Farms revenue seemed to decline in every category. CPG revenue decreased 29% over last year’s third quarter and dropped 2% sequentially. Bulk revenue from self-grown wholesale products dropped by 39% over last year’s third quarter and decreased 47% sequentially.
Lowell Farms also noted that there was a 49% decrease in wholesale volume, but a 3% increase in the realized price per pound over the second quarter.
One shining spot was Lowell Farm services revenue, which increased 384% over last year and increased 79% compared to the second quarter. The segment had a record quarter by processing roughly 114,200 pounds of wet-weight third-party flower compared to 23,300 pounds in the second quarter.
Out-of-state licensing revenue decreased 38% compared to the third quarter of 2022 and decreased 19% compared to the second quarter of 2023.
Lowell said it has remained one of the top three selling noninfused pre-roll brands in California and ranked as one of the top 20 brands in the state, according to Headset data.
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