Flora Growth Corp. FLGC released its financial and operating results for the third quarter ended September 30, 2022, revealing total revenue for the quarter was $10.8 million, an increase of 414% year over year, driven by Flora’s House of Brands division, which includes the acquisitions of JustCBD and Vessel.
Q3 2022 Financial Highlights
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Gross profit increased to approximately $5.0 million, up approximately 703% year over year.
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Gross margin in the quarter improved from 29.6% to 46.2% year over year, and demonstrated a gradual improvement from 43.9% during H1 2022.
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Net loss was approximately $7.4 million compared to a net loss of $3.6 million in Q3 2021. Net loss margins reduced year over year, year to date, and in comparison to H1 2022.
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Adjusted EBITDA was $(3.9) million compared to $(3.1) million in Q3 2021. Adjusted EBITDA margin improved significantly from -150.1 % in Q3 2021 to -36.5 % in Q3 2022.
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As of September 30, 2022, the company had approximately $5.9 million in cash compared to $37.6 million as of December 31, 2021. The decrease was primarily due to cash paid for the acquisition of JustCBD, as well as higher operating expenses related to investments in headcount, sales and marketing and one-time expenses associated with Cosechemos operations and the Flora Lab expansion.
“The third quarter of 2022 was another exciting quarter for Flora as we continued to lay the foundation of our business for the long-term,” stated Luis Merchan, chairman a CEO of Flora Growth. “During the quarter, we exported products to several new markets, including distribution of our Colombian grown high-CBD dried cannabis flower to Switzerland and the Czech Republic, as well as CBD isolate to the United States. Our global distribution network, coupled with our high-quality Colombian flower and derivatives, leave Flora well positioned to capitalize on the evolving global cannabis landscape.”
“Subsequent to the quarter, we signed a definitive agreement to acquire Franchise Global Health, a pharmaceutical and medical cannabis distributor with principal operations in Germany. This transformative deal would connect our Colombian commercial infrastructure and product portfolio to the German and EU cannabis markets, allowing Flora to significantly increase its international footprint.
2022 Outlook
Flora Growth reiteratedits 2022 revenue guidance of $35-45 million.
Price Action
Flora Growth shares were trading 6.02% higher at $0.53 per share, during Monday’s pre-market session.
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