Flora Growth Corp. (Nasdaq: FLGC) reported an impressive 140% year-over-year surge in revenue for the second quarter ended June 30, amounting to $21.5 million.
The gross profit for the same period climbed to $4 million, indicating a 19% increase compared to the previous year.
However, the quarter also resulted in a substantial net loss of $44.6 million. The loss incorporates various financial aspects, such as impairment expenses worth $34.9 million, losses from discontinued operations tallying $7.6 million, and depreciation and amortization at $900,000. Share-based compensation costs also contributed to the net loss, with an expenditure of $300,000.
The cumulative figures for the year-to-date tell a similar growth story. The company saw a revenue leap of 210% compared to last year, generating a total of $40.8 million. Gross profit rose by 68% year-over-year, reaching $9.3 million. The net loss for this period stood at $48.5 million, which includes impairment expenses, losses on discontinued operations, and other costs.
“The second quarter marked a transitional phase for Flora,” CEO Clifford Starke said. “Our dedicated efforts were focused on cost reductions and resource optimization, the effects of which are expected to be felt in quarters to come. Throughout this rebuilding phase, we will continue to prioritize Flora as a leading consumer brand globally.”
Beverley Richardson, one of the board members, also stepped down from her position at the company during the period.