Key Takeaways
- Local Bounti reported a 38% year-over-year increase in sales and a 181% increase in gross profit for full-year 2024.
- The company completed a major financial restructuring, extinguishing $197M in debt and securing $27.5M in new equity.
- Kathleen Valiasek was appointed CEO, leading the company into its next growth phase.
- Expansion of high-value specialty greens and salad kits continues across major retail partnerships.
- Local Bounti expects to reach positive adjusted EBITDA by Q3 2025.
Local Bounti Strengthens Financial Position and Appoints New CEO
Restructuring and Leadership Transition Support Strategic Goals
Local Bounti (NYSE: LOCL), a U.S.-based indoor agriculture company, announced full-year 2024 financial results and a series of strategic developments, including a significant debt restructuring and leadership transition.
Kathleen Valiasek, who previously served as President and CFO, has been appointed Chief Executive Officer. Craig Hurlbert, who previously held the CEO role, now serves as Executive Chairman.
“Our successful financing transaction has resulted in new equity infusion, a nearly 40% reduction in debt, and improved liquidity,” said Valiasek. “With this stronger financial foundation, Local Bounti is well positioned to execute the next phase of its growth strategy.”
The financial restructuring includes $27.5 million in new capital, the extinguishment of $197 million in debt, and revised terms that eliminate cash interest or principal payments until 2027. The maturity date of the debt has been extended to 2035.
Financial Results for 2024
Strong Revenue and Margin Growth Reflects Operational Focus
Full-year sales rose 38% to $38.1 million, driven by increased production at facilities in Georgia, Texas, and Washington. Gross profit improved to $4.1 million, and the company maintained a 27% adjusted gross margin, excluding non-cash items.
Selling, general, and administrative expenses were reduced by $23.8 million, reflecting cost-saving initiatives and lower stock-based compensation. Adjusted SG&A expenses totaled $28.2 million.
Net loss for the year was $119.9 million, a slight improvement over the $124.0 million loss in 2023. Adjusted EBITDA loss improved to $32.1 million, excluding interest, depreciation, and other non-recurring items.
“We’re seeing the benefits of streamlined operations and disciplined expense management,” said Valiasek. “These efforts support our goal of achieving positive adjusted EBITDA in 2025.”
Local Bounti Expands Product Lines and Retail Distribution
High-Value Specialty Greens and Salad Kits Gain Traction
In Q4 2024, Local Bounti expanded its product assortment, including specialty greens like Arugula and Power Crisp, and began supplying more retailers across the Pacific Northwest and Texas.
The company also expanded its partnership with Walmart, now supplying 191 stores with baby leaf varieties and committing to 13 Walmart distribution centers with Conventional Living Butter Lettuce from its California and Texas operations.
Local Bounti continues to refine its Grab-and-Go Salad Kits, launching new flavors in Q1 2025 and developing additional products aimed at value-conscious consumers.
Texas Facility Reconfiguration and Capacity Expansion
Infrastructure Designed for Flexible Production
The company reconfigured three acres of its Texas facility to allow alternating production of head lettuce and cut products based on customer preferences. This change temporarily reduced capacity but is expected to enhance margin performance upon completion.
Expansion plans using the company’s patented Stack & Flow Technology® are also underway, with further developments expected across Local Bounti’s facility network, including potential expansion into the Midwest.
Capital and Liquidity Update For Local Bounti
Over $40 Million in Available Liquidity Post-Restructuring
As of December 31, 2024, Local Bounti held $7.5 million in cash and restricted cash. Including a $25 million equity investment completed in March 2025 and an additional $2.5 million in capex financing, the company reports approximately $40 million in total available liquidity.
The revised 10-year credit agreement reduces interest rates and defers cash payments until April 2027. The company is also exploring further opportunities to lower its capital costs, including sale-leaseback transactions and USDA-backed financing.
Looking Ahead: First Quarter 2025 and Beyond For Local Bounti
Positive Adjusted EBITDA Targeted by Q3
For Q1 2025, Local Bounti expects sales of approximately $11.5 million, reflecting a temporary reduction in output during the Texas facility’s product mix transition.
The company believes its improved capital structure, expanded product offerings, and operational changes will support its goal of achieving positive adjusted EBITDA by the third quarter of 2025.
“We’ve built a scalable foundation and are aligning production with customer demand,” said Valiasek. “We are committed to driving sustainable growth and creating long-term value.”
Read the complete financial results here.
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