Flora Growth Corp. reported a decline in financial performance for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Revenue for the third quarter was $12.5 million, down from $17.3 million in Q3 2023, while year-to-date revenue decreased to $46.2 million from $58.1 million. The gross profit for Q3 2024 was $2.8 million, a significant drop from $4.9 million in Q3 2023, reflecting a gross margin decrease from 29% to 23%.
The company experienced a net loss of $3.8 million in Q3 2024, contrasting sharply with a net income of $1.1 million in the same quarter of the previous year. For the nine months ended September 30, 2024, the net loss was $9.8 million, a notable improvement from a net loss of $47.3 million in the same period in 2023. This reduction in losses was attributed to lower operating expenses, which decreased to $19.6 million from $57.2 million year-over-year.
Flora Growth's strategic developments included the acquisition of TruHC Pharma GmbH and Australian Vaporizers Pty Ltd. in 2024, aimed at expanding its market presence in Europe and Australia. However, the company also faced challenges, including the voluntary dissolution of several subsidiaries and the sale of its Colombian operations, which was completed in November 2023 for CAD $0.8 million (USD $0.6 million). The sale was part of a strategy to focus on core business areas in the U.S. and international pharmaceutical distribution.
The company reported a significant impact from regulatory challenges, particularly in Florida, where multiple stop sale orders were issued against its products, leading to an estimated revenue loss of $0.7 million. Additionally, Flora Growth's cash position as of September 30, 2024, was $4.2 million, a slight decrease from $4.4 million at the end of 2023. The company has indicated substantial doubt regarding its ability to continue as a going concern for at least one year, primarily due to ongoing cash flow challenges and reliance on external financing.
Overall, Flora Growth's financial results reflect a period of transition, marked by strategic acquisitions and operational restructuring, while also grappling with market pressures and regulatory hurdles.
About Flora Growth Corp.
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