Local Bounti Corporation ( (LOCL) ) has released its Q3 earnings. Here is a breakdown of the information Local Bounti Corporation presented to its investors.
Local Bounti Corporation, a pioneering entity in the U.S. indoor agriculture sector, leverages its patented Stack & Flow Technology® to produce sustainable, locally grown produce with minimal environmental impact. The company recently shared its financial results for the third quarter of 2024, highlighting a substantial 50% increase in sales year-over-year and its strategic efforts to expand product offerings and growing capacity.
The third quarter of 2024 saw Local Bounti achieve sales of $10.2 million, a notable jump from the previous year’s $6.8 million. This growth was primarily attributed to increased production across facilities in Georgia, Texas, and Washington, despite a temporary reduction in shipments from its Texas facility. The company’s adjusted gross margin improved to approximately 32%, driven by enhancements in operational efficiency. However, the net loss widened to $34.3 million compared to $24.3 million in the prior year, impacted by strategic shifts and expansions.
Local Bounti’s strategic pivot towards high-demand specialty products such as Arugula and Spinach has shifted their timeline for achieving positive adjusted EBITDA to the second quarter of 2025. The company has optimized its capital and operational structures, reducing selling, general, and administrative expenses by $2.1 million compared to the prior year. Despite this, research and development expenses increased by $2.1 million, reflecting investments in new product lines.
Looking ahead, Local Bounti anticipates fourth-quarter revenues of approximately $11 million, marking an expected year-over-year growth of 67%. The company remains focused on expanding its capacity and optimizing its product mix to meet increasing demand, while working towards operational efficiencies and financial goals.
