Flora Growth Reports Record Revenue in the First Quarter of 2023

Flora Growth Corp (NASDAQ: FLGC), a Florida-based cannabis company that went public in 2021, reported record-high quarterly revenue of $20.1 million in the first quarter of 2023, a year-over-year surge of 307%. Its quarterly profits of $5.5 million were also up 105% compared the first quarter of 2022.

The Fort Lauderdale firm, whose wholly owned subsidiary Cosechemos operates a 10,000-square-foot cultivation and extraction facility in Santander, Colombia, also reported an adjusted EBITDA loss for the quarter of $1.4 million, an improvement on its $3.4 million loss in the first quarter of 2022.

“The first quarter was focused on strengthening our operational performance, focusing on financial discipline, and optimizing the integrations of all our M&A transactions,” said recently appointed CEO Hussein Rakine in a statement.

The quarter was not without challenges and headwinds, however. Gross margin came in at 27%, down from 54% in the same period in 2022, but the company stated that this “expected reduction was primarily driven by the contribution of lower-margin sales in the German pharmaceutical distribution subsidiary” and that the “export process from Colombia has proven to take longer and operate with less consistency than we had anticipated.”

“Delays with revenue capture from Cosechemos, challenges in the realization of overhead reductions, and acquisition-related costs and liabilities continue to be the primary contributors to the company’s liquidity position,” said the company.

At quarter end, Flora Growth reported that it held approximately $5.3 million in cash and cash equivalents, a drop from $9.5 million at the end of 2022.

“If we are not successful in meeting our business plans we may continue to face cash flow deficiencies,” said Rakine in a statement. “As a result, we may explore debt, equity financing or strategic alternatives to fund continued operations.”

Photo: Flora Growth executives gathered in New York to ring the closing bell of the NASDAQ in 2021. (Credit: Flora Growth)