Flora Growth Stock Trading Lower On 314% Annual Revenue Growth

Flora Growth Corp. FLGC FY 2022 revenue was $37.2 million, a 314% increase year-over-year. This was primarily driven by the House of Brands businesses. Q4 2022, revenue was $11.5 million, a 7% sequential increase from Q3 2022.

FY2022 Financial Highlights

• Gross profit increased by 494% year-over-year to $14.4 million.

• Gross margin improved year-over-year from 27% in FY2021 to 39% FY2022.

• Adjusted EBITDA loss for FY2022 was $18.3 million, up from $16.5 million in FY2021.

• Adjusted EBITDA margin for FY2022 improved to -49.3% from -184.2% in FY2021.

• Net loss for FY2022 was $52.6 million as compared to $21.4 million for FY2021 and net loss margin for FY2022 improved to -141.6% from -237.9% in FY2021.

• As of December 31, 2022, the company had approximately $9.5 million in cash and cash equivalents as compared to $37.6 million as of December 31, 2021.

“In 2022, we not only met our revenue guidance but reported both quarterly and annual record revenue. This accomplishment was thanks to the successful completion and integration of our M&A transactions, the compelling value proposition of our products in our House of Brands and the operational milestones we achieved throughout the year,” stated Luis Merchan, chairman and CEO of Flora. "It is important to note that we have accomplished all this despite having to navigate one of the most hostile business environments to date, especially for the cannabis industry. Nonetheless, we achieved both quarterly and annual record revenue, improved margins and increased our gross profits - all while cutting costs and improving operational efficiencies.”

2023 Outlook

• Revenue guidance of $90 million to $105 million

• House of Brands and commercial and wholesale divisions expect roughly equal contributions to total revenue, while the pharmaceutical division is expected to contribute up to 10% of total revenue.

• The company furthered its commitment to organizational and financial efficiencies, implementing internal cost controls and focusing on high-margin revenue generation.

Price Action

Flora Growth shares were trading 8.41% lower at $0.2691 per share at the time of writing Monday morning.

Benzinga's Cannabis Capital Conference Is Back

The most successful cannabis business event in the world, the Benzinga Cannabis Capital Conference, returns to Miami for its 16th edition. This is the place where DEALS GET DONE, where money is raised, M&A starts, and companies meet investors and key partners. Join us at the Fontainebleau Miami Beach Hotel in Florida on April 11-12. Don’t miss out. Secure your tickets now. Prices will surge very soon.