Flora Growth Swings to Profitability on Restructuring, Sales Surge

The firm previously decided to concentrate on core business areas.

Flora Growth Corp. (Nasdaq: FLGC) recorded its first-ever profitable quarter in the period ended Sept. 30, with net income of $1.1 million.

The Fort Lauderdale, Florida-based company reported a $7.4 million loss in the same quarter of the prior year. The profitability narrative was buoyed by a substantial revenue increase of 78% year-over-year, generating $17.3 million in the quarter.

The surge in sales was accompanied by a 6% year-over-year increase in gross profit to $4.9 million.

The upturn follows a deliberate shedding of unprofitable operations and a concerted effort to concentrate on high-growth potential areas, a strategy championed by CEO Clifford Starke.

“The third quarter was a record quarter for Flora,” Starke said in a statement. “Our efforts to cut costs, divest unprofitable operations, and focus on growing segments have begun to pay off. For the first time in the company’s history, Flora delivered a profitable, EBITDA-positive, and operating cashflow-positive quarter.”

Despite the positive quarterly results, the company has accumulated a net loss of $47.3 million year-to-date, which includes substantial one-time costs related to the restructuring efforts.

Flora saw positive operating cash flow of $500,000, a solid reversal from the $4 million cash burn in the same quarter last year. The company has a net working capital of $7.3 million.

“The business transformation has been productive, and we have achieved our short-term goals,” Starke said. “Now we will focus on execution and growing the businesses for scale and profitability.”

Adam Jackson

Adam Jackson writes about the cannabis industry for the Green Market Report. He previously covered the Missouri Statehouse for the Columbia Missourian and has written for the Missouri Independent. He most recently covered retail, restaurants and other consumer companies for Bloomberg Business News. You can find him on Twitter at @adam_sjackson and email him at adam.jackson@crain.com.

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the latest cannabis news delivered right to your inbox

The Morning Rise

Unpack the industry with the daily cannabis newsletter for business leaders.

 Sign up

About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


Recent Tweets

Get the latest cannabis news delivered right to your inbox

The Morning Rise

Unpack the industry with the daily cannabis newsletter for business leaders.