Flora Growth Expects $90-$105 Million USD Revenues For Fiscal 2023

Colombian-US cannabis company Flora Growth Corp. (NASDAQ: FLGC) announced last week revenue guidance of $90 million to $105 million USD for the fiscal year 2023, reflecting expected organic growth in its House of Brands retail division and expansion of the company’s commercial & wholesale division capabilities. This forecasted growth also incorporates Flora’s new German-based business through the acquisition of Franchise Global Health. Flora says its German operations solidify a crucial foothold in a growing international cannabis market, providing a unique opportunity for operational synergies and diversified growth.  Revenue growth is also expected to reflect the continued successful execution of product development and pricing strategies.

Flora says that the House of Brands and Commercial & Wholesale divisions will have roughly equal contributions to the top line, while the pharmaceutical division is expected to contribute up to 10% of total revenue.

Luis Merchan, the CEO of Flora Growth.

“We are pleased to announce that we will meet our guidance for 2022 and are issuing revenue guidance of $90 million – $105 million for the year 2023,” said Luis Merchan, Chairman and CEO of Flora. “Our 2023 forecasted revenue range represents anticipated growth in excess of 100% over last year and highlights our continued momentum, despite a challenging macroeconomic backdrop that has disproportionately impacted the cannabis industry.”

Operating Highlights for 2022 Included:

• Acquired Franchise Global Health (FGH), an international cannabis company with primary operations in Germany.
• Raised gross proceeds of $5 million through a registered direct offering, further bolstering Flora’s liquidity position.
• Initiated commercial cannabis exports to new international markets including the United States, Switzerland and the Czech Republic.
• Completed acquisition of category-leading wellness brand JustCBD; expanding U.S. infrastructure and CPG portfolio.
• Completed construction of Bogota, Colombia-based Flora Lab 4, a laboratory specializing in prescription cannabis formulations.
• Flora appointed former Amazon executive Tim Leslie and former JP Morgan executive Brandon Konigsberg to its Board of Directors, named CEO Luis Merchan as Chairman of the Board of Directors, appointed former Amazon executive Elshad Garayev as Chief Financial Officer, and hired cannabis regulatory veteran Holly Bell as Vice President of Regulatory Affairs.
• As a result of the FGH acquisition, Flora appointed former FGH CEO Clifford Starke as President of Flora and Member of the Board of Directors and former FGH Chief Operating Officer Edward Woo as a member of the Board of Directors.
• Flora established JustCBD’s on-the-ground presence in the United Kingdom and distribution operations in the EU, opening offices in London.
• Flora acquired CBD brands Masaya and No Cap Hemp Co., enhancing new product offerings and revenue streams.
• Flora was awarded Best M&A Deal at the Benzinga Cannabis Capital Conference for the acquisition of JustCBD.