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Local Bounti Stock Drops Despite Sales Growth
12 Aug
Summary
- Second-quarter revenue fell short of analyst expectations.
- Net loss improved year-over-year, nearing adjusted EBITDA goals.
- Additional investment received post-quarter for financial flexibility.
Local Bounti Corporation (NYSE:LOCL) saw its shares fall in premarket trading following a second-quarter earnings report that missed analyst expectations. While revenue reached $13.9 million, it fell short of the $22 million consensus estimate, and the adjusted loss per share was $0.68, wider than the anticipated $0.50.
Despite the misses, the company reported a 14% year-on-year increase in revenue to $13.9 million, driven by improved production and sales. Local Bounti also narrowed its net loss to $19.8 million and reduced its adjusted EBITDA loss by 17% compared to the previous year, signaling advancement towards its profitability objectives.
Gross profit saw a decline, and adjusted gross margin decreased to 27% due to temporary packing inefficiencies at its Georgia facility, though crop yields improved approximately 10%. Following the quarter's end, Local Bounti secured an additional $12.5 million investment from a strategic investor, adding to a prior $15 million investment, to bolster financial flexibility. The company now supplies approximately 13,000 retail locations, having recently expanded its retail partnerships.
