Flora Growth Corp. (NASDAQ: FLGC) released its revenue guidance for the fiscal year 2023 as the company forecasted a range of $90 million to $105 million. Flora said that its estimates reflect expected organic growth in the House of Brands division and expansion of the Commercial & Wholesale division capabilities.
The stock was jumping 18% in early trading on the news and was lately selling at 31 cents. However, it still has a long way to go to regain the Nasdaq’s minimum $1.00 bid price requirement. This month the company said that Nasdaq gave it another 180 days to get the stock price back up to one dollar. The company now has until July 3, 2023, to regain compliance.
“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 Luis Merchan, Chairman and CEO of Flora. “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.”
Huge Jump In Guidance
The increase in revenue is significant considering that when the company reported its third-quarter earnings in November, it only had revenue of $25 million for nine months. The 2022 revenue guidance was in the range of $35-$45 million.
The company said in a statement that the House of Brands and Commercial & Wholesale divisions will have roughly equal contributions to the top line. In contrast, the Pharmaceutical division is expected to contribute up to 10% of total revenue.
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 successful execution of product development and pricing strategies.