Flora Growth Corp. (NASDAQ:FLGC) reported Thursday after market close its financial results for the three months ended Sept. 30, 2024. disclosing revenue of $12.47 million, down from $17.32 million in the same period of last year.
“As the cannabis industry continues to grow, we at Flora are encouraged by the election of President-elect Donald Trump and the potential for continued progress in cannabis reform,” stated CEO Clifford Starke. “Under his previous administration, the signing of the 2018 Farm Bill laid the foundation for the U.S. hemp and CBD industries, creating a $28 billion market and countless economic opportunities for farmers, manufacturers, and brands across the nation. We recognize the profound impact of this legislation, which enabled Flora and many others to bring safe, high-quality cannabis products to a global audience.”
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Q3 Financial Highlights
- Gross profit was $2.84 million compared to $4.94 million in the third quarter of 2023.
- Net loss was $3.8 million compared to a net income of $1.1 million in the comparable quarter of last year.
- Total operating expenses were of $6.5 million, compared to $5.5 million in the corresponding quarter of 2023.
- Adjusted EBITDA was a loss of $2.4 million compared to an Adjusted EBITDA loss of $200,000 in the comparable quarter.
“With federal rescheduling procedures set to begin in January, we remain optimistic about additional cannabis policy advancements that could bring significant benefits to consumers, businesses, and communities alike,” Starke continued. “The prospect of a rescheduling shift underscores the growing recognition of cannabis’s therapeutic potential and its rightful place in a modern, regulated economy.”
Recent Milestones
Earlier this month, Flora reaffirmed its medical cannabis supply agreement with Curaleaf Holdings‘ (OTCQX:CURLF) subsidiary Northern Green Canada, Inc. Under the agreement, Northern Green will supply Flora with medicinal cannabis products that Flora will distribute in the German market. The new supply agreement provides for a minimum purchase obligation and a minimum supply obligation on Flora and Northern Green, respectively, subject to certain terms and conditions.
In October, the Florida-based cannabis company launched its first THC-infused beverage, Melo, marking the company's debut into the rapidly growing beverage market. Melo is the result of a strategic joint venture between Flora Growth and Peak, a renowned provider of advanced cannabis-based products. The collaboration combines Flora's marketing and distribution network with Peak's emulsion technology. Melo comes in four flavors – grapefruit, half & half lemonade iced tea, strawberry mango and wild berries.
Price Action
Flora Growth shares closed Thursday's market session 15.93% higher at $1.31 per share.
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Photo: Courtesy of YARphotographer via Shutterstock
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