Flora Growth has reported $14.9 million in revenue for the first half of 2022, an increase of 604% compared to H1 2021 and 117% from H2 2021.
Meanwhile, gross profit increased to $7 million, an increase of 547% compared to H1 2021 and 363% compared to H2 2021. Flora attributed the growth to its house of brands, the launch of numerous new brands in the U.S. and the commencement of sales in its commercial wholesale and life sciences business.
Some of the H1 2022 highlights from Flora Growth include the acquisition of JustCBD, signing a distribution agreement with Giant OTG Management to provide access to JustCBD products at U.S. airports, increasing its European presence with the opening of a London office, receiving approval to sell JustCBD products on Amazon U.K., establishing a brick-and-mortar JustCBD store in the Czech Republic with plans to launch more stores in Germany through its partnership with Greenyard and acquiring the CBD brand Masaya to expand its life sciences business offerings. Flora also built its all-outdoor cultivation and on-site extraction facility producing distillates and isolates using flower grown at its outdoor operation in Bucaramanga, Colombia.
“We started 2022 with the integration of both Vessel and JustCBD, and despite macro headwinds in the global markets as well as global cannabis regulations, we are extremely pleased with our growth year-to-date. We are also seeing positive movement in our life sciences division with progress on the approval of our clinical trials in the United Kingdom and the acquisition of Masaya, a science-backed, high-potency CBD brand,” said Luis Merchan, chairman and CEO of Flora Growth. “We continue to prudently manage our overhead and working capital as we expect to improve profitability going forward. With all three of our core pillars generating revenue in the second half of 2022, continued gross margin expansion and a focus on streamlining operating expenses — we believe we have a path to profitability that few global cannabis companies can achieve in this difficult environment. The execution of our key initiatives is a testament to our team’s ability to deliver on plan.”
The company also reaffirmed that it expects 2022 revenue guidance to range between $35 and $45 million, meaning a projected growth of approximately 300-400% compared to 2021.
Flora Growth Corp. is an all-outdoor cultivator, manufacturer and distributor of cannabis products and brands who operates one of the largest outdoor cannabis cultivation facilities.