Flora Growth Reports Over $2M In H1 2021 Revenue, Expects To See $9-11M In H2

Flora Growth Corp. FLGC reported its financial and operating results for the six months ending June 30, 2021, revealing revenues of over $2 million, compared to revenues of approximately $100 000 in the same period of last year.

“The first half of our fiscal year is highlighted by a number of tremendous accomplishments by our team despite challenges related to the global pandemic,” said Flora Growth's president and CEO Luis Merchan regarding Thursday's earnings report. “Management believes each of our divisions gained significant traction relative to where we started the year as we execute on the strategic growth plan we laid out in December 2020, positioning shareholders for future success.”

H1 2021 Financial Highlights

• Gross profit was 60% (unaudited)
• Operating expenses totaled $6 million, yielding a net loss of $4 million (unaudited).
• On June 30, Flora’s cash balance was approximately $19 million with minimal debt (unaudited).
• Subsequent to June 30, Flora reported seeing a substantial cash inflow from the exercise of the warrants sold as part of Regulation A. To date, the company received commitments of more than $10 million (some unfunded), with $7.2 million in cash received and an additional $1 million pending clearing.

Q2 2021 Operational Highlights:

• Completed an IPO and successful public listing on the Nasdaq Capital Market.
• Announced plans to acquire 100% of Koch & Gsell, manufacturer of the leading Swiss hemp and tobacco pre-roll brand Heimat
• Made a strategic investment of $2.4 million in Hoshicap Portugal Unipessoal Lda, a subsidiary of Hoshi International, setting up distribution of Flora’s product portfolio into the European Union.
• Debuted on the U.K. and Central American markets with sales to new international distribution partners; bringing the total countries that Flora and its divisions currently have product in market to 13.
• Strengthened board of directors and management team by appointing Marc Mastronardi as director, Jason Warnock as CRO, Lee Leiderman as CFO, Dr. Annabelle Manalo-Morgan, Ph.D., as lead scientific advisor on the newly formed science advisory team.
• Formed Flora Lab manufacturing division that operates a modern 16,000-square-ft manufacturing facility and holds multiple GMP certifications with a diversified product portfolio.

Flora Growth expects to generate between $9 million and $11 million in the second half of 2021.

Price Action

Flora Growth's shares traded 20.99% lower at $8.81 per share after market close Thursday.

Photo courtesy of Flora Growth