Flora Growth Corp. reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with total revenue of $59.5 million, down from $76.1 million in 2023. The company experienced a net loss of $15.9 million, a notable improvement compared to the $56.3 million loss reported in the previous year. This reduction in losses was attributed to lower operating expenses and the absence of losses from discontinued operations, following the sale of its Colombian subsidiaries in 2023. The accumulated deficit as of December 31, 2024, stood at $158.1 million.
The company's revenue decline was primarily driven by decreased contributions from its key segments. Phatebo, its commercial and wholesale segment, generated $35.9 million in 2024, down from $38.3 million in 2023. JustCBD, a major player in the House of Brands segment, saw revenues drop to $17.7 million from $31.1 million, while Vessel's revenue decreased from $6.7 million to $5.2 million. The company attributed these declines to increased competition, market saturation, and regulatory challenges, including stop sale orders affecting product distribution in Florida.
Strategically, Flora Growth has made significant acquisitions, including TruHC Pharma GmbH and Australian Vaporizers Pty LTD, which were completed in 2024. These acquisitions are expected to enhance the company's operational capabilities and market presence, particularly in the European cannabis market. However, the company also faced challenges, such as a stop sale order from the Florida Department of Agriculture, which impacted its JustCBD product line and resulted in a settlement agreement that included a five-year revocation of its food permit in Florida.
Operationally, Flora Growth's workforce consisted of 76 employees as of December 31, 2024, with a mix of full-time and part-time staff. The company has been focusing on cost-cutting measures to improve its financial position, but it continues to face substantial doubt regarding its ability to continue as a going concern without additional capital. The company reported cash and cash equivalents of $6.1 million at year-end, which it believes may not be sufficient to meet its obligations in the near term. Looking ahead, Flora Growth aims to secure additional funding through equity or debt financing to support its growth initiatives and operational needs.
About Flora Growth Corp.
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