Blooming: Flora Growth's First Profitable Quarter Amid Strategic Shifts
Portfolio Pulse from Patricio Liddle
Flora Growth Corp (NASDAQ:FLGC) reported its first profitable quarter with a 78% increase in revenue to $17.3 million and a gross profit of $4.9 million, up 6% from the previous year. Despite this, the company experienced a net loss of $47.3 million, which was higher than the previous year's $39.6 million. The adjusted EBITDA showed a loss of $231,000, but the company achieved a positive EBITDA of $0.9 million. CEO Clifford Starke credited strategic cost reductions and a refocused business model for the profitability. Year-to-date revenue is up 154% to $58.1 million, and gross profit increased by 39% to $14.2 million. FLGC's stock price rose 7.32% to $0.805 per share.
November 10, 2023 | 4:59 pm
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Flora Growth Corp reported a significant increase in revenue and its first profitable quarter, with a positive EBITDA of $0.9 million. However, the company still posted a net loss of $47.3 million. The stock price rose 7.32% to $0.805 per share.
The news of Flora Growth's first profitable quarter and increased revenue is likely to be viewed positively by investors, contributing to a short-term bullish sentiment. The rise in stock price following the announcement indicates a positive market reaction. However, the net loss is still a concern and may temper the long-term outlook.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100