Flora Growth Corp. FLGC announced its 2023 revenue guidance of $90 million - $105 million via press release and a live webcast hosted by the company's chairman and CEO, Luis Merchan.
“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 Merchan. “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.”
Flora Update: 2023 Guidance & 2022 Highlights
The company’s 2023 revenue guidance “reflects expected organic growth in the House of Brands division and expansion of the Commercial & Wholesale division capabilities,” per the company press release.
“This forecasted growth also incorporates Flora’s new German-based business as established through the acquisition of Franchise Global Health. Flora’s 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.”
In addition, it is expected 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.
"The existing infrastructure in Germany will allow us to realize medical cannabis sales to thousands of pharmacies and the distribution of pharmaceutical products to 28 countries," said Merchan. “After passing the legal framework for the export of medical cannabis out of Colombia, in the second quarter of 2022, we were able to begin shipping cannabis and derivatives to countries worldwide these countries included the United States, Switzerland, and the Czech Republic."
Operating Highlights for 2022 Included:
- Acquired Franchise Global Health.
- Raised gross proceeds of $5 million through a registered direct offering.
- Initiated commercial cannabis exports to new international markets including the United States, Switzerland, and the Czech Republic.
- Completed acquisition of 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.
- Acquired CBD brands Masaya and No Cap Hemp Co.
- Flora was awarded Best M&A Deal at the Benzinga Cannabis Capital Conference for the acquisition of JustCBD.
"We're particularly excited moving into 2023, and realizing the opportunity to open new international markets (...) I think that's where we'll see some meaningful movements this year," said Flora Growth CMO, Jessie Casner.
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