Flora Growth Corp. FLGC, a manufacturer and distributor of global cannabis products and brands, reported late Monday its financial and operating results for the six months ended June 30, 2022. During the first half (H1) of 2022, Flora’s revenue increased to ~$15.0 million, up 604% compared to the same period of 2021 and 117% from the second half of 2021. Meanwhile, the firm’s gross profit increased to ~$7.0 million Year-Over-Year, up 547% and 363% compared to the second half of 2021.
In a recent press release, the company reaffirms its 2022 revenue guidance to range between $35.0 million - $45.0 million, indicating approximately 300% - 400% projected revenue growth from 2021.
"In the first half of 2022, Flora delivered on its promise to double revenue compared to the second half of 2021, and we expect to maintain that trajectory to deliver our full year guidance as a result of continued growth in our House of Brands [each brand has its own identity, often representing a separate demographic, need, or occasion], and the commencement of sales in our Commercial Wholesale and Life Sciences business," said Luis Merchan, Chairman and CEO of Flora.
"We started 2022 with the integration of both [brands] Vessel and JustCBD (...). We are seeing positive movement in our Life Sciences division with progress on the approval of our clinical trials in the United Kingdom and the acquisition of Masaya, a science-backed, high-potency CBD brand," Merchan added.
"We continue to prudently manage our overhead and working capital as we expect to improve profitability going forward. (...) We believe we have a path to profitability that few global cannabis companies can achieve in this difficult environment," concluded the CEO.
Flora Growth’s chairman and CEO Luis Merchan and a slew of other cannabis execs, entrepreneurs, CEOs, investors, etc. at the September Benzinga Cannabis Capital Conference, Sept. 13-14 in Chicago. Get your tickets HERE and reserve your spot at the Palmer House Hotel HERE.
Flora's H1 2022 Financial Highlights
- Total revenue for the six months ended June 30, 2022, was $14.9 million, up more than 7x year-over-year and 2x sequentially, with the growth driven by Flora's House of Brands.
- Gross profit for the period increased to approximately $6.5 million, up more than 5x year-over-year and 4x sequentially.
- Net loss was approximately $32.7 million compared to a net loss of $5.1 million in H1 2021 and a net loss of $16.2 million in H2 2021.
- Adjusted EBITDA was $(8.2) million compared to $(4.9) million in H1 2021. Adjusted EBITDA margin improved significantly from -233% in H1 2021 to -55% in H1 2022.
- As of June 30, 2022, the company had approximately $10.3 million in cash compared to $37.6 million on December 31, 2021.
Business Highlights In the First Half of 2022 And Guidance For The Rest Of The Year
- The company reaffirms its 2022 revenue guidance to range between $35.0 million - $45.0 million, projecting growth of approximately 300% - 400% over 2021.
- Completed the acquisition of JustCBD, purchasing the company for $16.0 million in cash and 9.5 million common shares of Flora.
- Entered into an agreement with Pharma Indigena Misak Manasr Sas, the largest indigenous tribe in Colombia, to commercialize and sell cannabis products domestically and internationally in partnership with the Misak people.
- Signed a distribution agreement with Giant OTG Management to provide access to JustCBD products in U.S. airports.
- Increased presence in Europe with the opening of an office in London, while also receiving approval to sell JustCBD products on Amazon UK. The Company also established a brick-and-mortar JustCBD store in the Czech Republic and intends to launch more stores in Germany through its partnership with Greenyard.
- Acquired CBD brand Masaya to expand its Life Sciences offerings. Masaya formulations were submitted as part of the clinical trial program in partnership with the NHS (National Health Service in the UK) and University of Manchester.
- The Company reorganized its laboratory facilities which now include a cannabis extraction facility in Bucaramanga, Colombia, GMP processing facility for cannabis and non-cannabis topicals, phytotherapeutics and OTC medicines and a custom formulations lab for cannabis prescriptions in Bogota, and a cannabis transformation facility for cannabis derivatives in Fort Lauderdale, Florida.
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