HAMILTON, Mont. - Local Bounti Corporation (NYSE: LOCL), a leader in the U.S. indoor agriculture sector, has announced a supply agreement to provide its living butter lettuce to a significant multinational retailer. The deal involves 13 distribution centers and will be fulfilled from Local Bounti's facilities in California and Texas, demonstrating the company's growing commercial presence and customer-focused strategy. The company, currently valued at $11.08 million, has shown strong revenue growth of 27.83% over the last twelve months, according to InvestingPro data, though current market indicators suggest the stock may be undervalued.
According to Local Bounti CEO Craig Hurlbert, the agreement reflects the increasing consumer demand for fresh, sustainable, and locally grown produce. The company's expansion in the southern U.S. aims to meet this demand and provide differentiated products in the market. This arrangement is the result of strategic discussions with retail partners, ensuring that Local Bounti's facilities are optimized for products that align with customer distribution plans. However, InvestingPro analysis reveals challenges, including a gross profit margin of 12.11% and significant debt obligations, with 14 additional key insights available to subscribers.
Local Bounti's approach has been to align its capacity expansion with customer needs, which is expected to drive performance and contribute to the company's goal of reaching positive adjusted EBITDA by the second quarter of 2025. Current EBITDA stands at -$47.03 million, with analysts anticipating continued sales growth this year, as reported in InvestingPro's comprehensive research report, available for over 1,400 US stocks.
The company's patented Stack & Flow Technology® is cited as a key innovation, enhancing crop yields, output, and economics. Local Bounti's indoor farming practices are touted as more sustainable than traditional methods, using significantly less land and water. With a mission to revolutionize agriculture, Local Bounti aims to provide accessible, fresh, and sustainable produce to communities nationwide.
The information in this article is based on a press release statement from Local Bounti Corporation. The company's forward-looking statements are subject to risks and uncertainties that could affect actual results, including the company's ability to secure necessary capital, meet listing requirements, integrate acquisitions, manage growth, and achieve its financial and sustainability goals. These statements are not guarantees of future performance and should be evaluated in light of these risks.
In other recent news, Local Bounti Corporation reported a 50% increase in sales year-over-year, reaching $10.2 million, during its third-quarter earnings call. However, this figure fell short of expectations, attributed to the company's strategic shift towards high-value specialty products, such as Arugula and Spinach. As a result, Local Bounti anticipates achieving positive adjusted EBITDA by the second quarter of 2025, a delay from previous estimates. The company also announced the completion of the Montana facility's transition to commercial production, contributing to improved operational efficiency.
In addition to these developments, Local Bounti has expanded its customer base, securing over 180 Brookshire Grocery locations and agreements with Sam's Club. Projected revenues for the fourth quarter of 2024 are expected to be around $11 million, reflecting a 67% year-over-year increase. The company also highlighted ongoing discussions with potential capital partners to secure financing after solidifying customer needs and facility designs. These are among the recent developments that Local Bounti is navigating during this period of strategic transition.
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