Flora Growth Corp Announces Its 2023 Revenue Guidance of $90 Million to $105 Million

Flora Growth Corp. FLGC (“Flora”) is a US-based cannabis company with one of the largest outdoor cultivation and extraction facilities in the world located in Colombia. Flora Growth is a US-based producer of cannabis flower and derivatives, consumer packaged goods, and medical-grade cannabis formulations. The company has over 500 different products offered across 15,000 different distribution locations worldwide, with deeper expansion planned in Europe via a recent acquisition. 

Flora announced revenue guidance of $90-105 million USD for the 2023 fiscal year. This represents year-over-year growth exceeding 100%. The company is confident in its ability to succeed in this endeavor largely due to expected organic growth in the House of Brands division and expansion of the Commercial & Wholesale division. The company also expects that the Pharmaceutical division will contribute up to 10% of the total projected revenue. 

Another major component of Flora’s 2023 strategy will be solidifying operations in Germany. At the end of 2022, Flora acquired Franchise Global Health, a Canadian cannabis company with primary operations in Germany. The acquisition came the same week German officials revealed a plan to legalize recreational marijuana which would position Flora as a key player in the expanding adult-use cannabis industry. The acquisition provided Flora with access to Germany’s existing medical cannabis market and over 1,200 pharmacies.

“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.”

In addition to Flora’s strong brand portfolio, the company is known for its cost-effective cultivation model. The company's outdoor marijuana cultivation operations, located in Colombia, average around $0.06 USD/gram. In comparison, competitors average around $1.49-2.36 USD/gram.

Flora currently operates in five different countries with distribution in over 12 countries and it looks like 2023 will mark a growing international presence, especially in Europe. In 2022, Flora’s wholly-owned subsidiary, JustCBD, established a team in the United Kingdom and opened offices in London. The company also took steps to export its products from Colombia to Switzerland and the Czech Republic. In combination with their position in Germany through the Franchise Global Health acquisition, it could be interesting to see how Flora shapes up in the European Union. 

Featured Photo by Diyahna Lewis on Unsplash

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