Cannabis company Flora Growth Corp. FLGC a global cultivator, manufacturer, and distributor of cannabis products and brands, reported Monday its financial and operating results for the quarter that ended March 31, 2023.
“The first quarter was focused on strengthening our operational performance, focusing on financial discipline, and optimizing the integrations of all our M&A transactions,” stated Hussein Rakine, newly appointed CEO of Flora. “Our House of Brands continued to be the primary revenue-generating pillar, posting sequential growth and steady margins. Our commercial and wholesale division was positively impacted by the addition of our German distribution business while our pharmaceutical initiatives continued to progress.”
Rakine added, “Additionally, despite implementing various cost-saving initiatives to lower operating expenses, the company has not yet achieved its ultimate organization-wide cost-reduction goals. To address this challenge, we will continue exploring various strategies to reduce operating costs.”
Q1 2023 Financial And Operational Highlights
- Revenue of $20.1 million represented a 307% increase year-over-year and is the highest revenue-generating quarter in the company’s history.
- The commercial and wholesale segment delivered nearly $8.0 million in revenue, driven by the German-based pharmaceutical distribution subsidiary.
- Gross profit for the quarter increased by 105% year-over-year to $5.5 million.
- Gross margin was 27%, a decrease from 54% in the same quarter of 2022. This expected reduction was primarily driven by the contribution of lower-margin sales in the German pharmaceutical distribution subsidiary.
- Adjusted EBITDA loss was $1.4 million, compared to a loss of $3.4 million in the first quarter of 2022.
- Net loss for the period was $3.9 million, as compared to $7.6 million for Q12022, and net loss margin for Q12023 improved to -19% from -154% in Q12022.
- As of March 31, 2023, the company had approximately $5.3 million in cash and cash equivalents as compared to $9.5 million as of December 31, 2022.
Related links:
Flora Growth Corp Announces Its 2023 Revenue Guidance of $90 Million to $105 Million
Photo: Courtesy of Zdeněk Tobiáš from Pixabay
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