Flora Growth Corp. (NASDAQ: FLGC) reported its financial results for the third quarter ending September 30, 2022, with revenue increasing 414% over last year to $10.8 million. Flora attributed some of the growth to the acquisitions of JustCBD and Vessel. Still, the company delivered a net loss of approximately $7.4 million versus last year’s net loss of $3.6 million.
On a positive note, Flora Growth said it remains on track to meet its 2022 revenue guidance of $35-45 million.
“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,” said 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.”
As of September 30, 2022, Flora Growth said it had roughly $5.9 million in cash, a big drop from the $37.6 million it had at the end of 2021. The company said 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.
Merchan went on to say, “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.
“As we look ahead to the end of the year, we expect to finalize the transaction and solidify our presence in the European cannabis market. With our industry-leading production costs and expanding global footprint, we believe our business is well positioned to accelerate growth into 2023 and beyond.”