Flora Growth Corp (NASDAQ:FLGC) (FSE:7301) reported its financial and operating results Monday for the second quarter ended June 30. The Florida-based cannabis company disclosed revenue of $15.68 million, down from $21.46 million in the same period last year.

As per the regulatory filing, the company attributed the revenue decline to JustCBD's performance in the quarter, which had $4.4 million in sales. In the same period of 2023, JustCBD had $9.0 million in sales. This performance was caused by the company's 2023 decision to discontinue several unprofitable product lines as well as growing competition and market saturation.

The earnings report comes shortly after company listed on the Frankfurt Stock Exchange, with the goal of connecting with European investors.

"In the second quarter of 2024, we at Flora, demonstrated an aptitude to make accretive acquisitions and form strategic partnerships to capitalize on the most robust market trends," stated CEO Clifford Starke.

Starke was referring to the company's acquisition of Germany-based TruHC Pharma GmbH in response to the country's recent cannabis reform. In the United States, Flora Growth entered into a joint venture with Althea Group Holdings to capitalize on the rapid growth in the beverages market.

"Our operating expenses and cash flows used in operating activities have decreased notably across the board compared to the prior period. We ended the quarter with cash of $6.1 million and set the stage for a wide array of financing alternatives to further fuel our business plan," Starke said.

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Q2 Financial Summary

• Net loss of $2.66 million compared to a net loss of $44.56 million in the comparable quarter, an improvement of 94% quarter-over-quarter.
• Gross profit amounted to $3.17 million, compared to $3.96 million in the same period last year.
• Adjusted EBITDA was a loss of ($2.82 million), compared to an Adjusted EBITDA loss of ($3.91 million) in the comparable quarter.
• Total operating expenses were $6.7 million, compared to $44.0 million in the comparable quarter.
• Cash used in operating activities of $300,000, compared to cash used in operating activities of $3.5 million in the comparable quarter, an improvement of 91% quarter-over-quarter.

JustCBD Highlights

• Loss from continuing operations was $1.4 million and Adjusted EBITDA loss of $1.3 million in the quarter.
• Maintained a gross profit margin of 34% on sales of $4.4 million. Just International contributed $200,000 to sales across 11 countries.
• Approximately 41% of revenues stemmed from our direct-to-consumer model, while approximately 59% was generated through business-to-business sales.
• Over 120 new wholesale customers were added to our network in the quarter.

Price Action

Flora Growth shares closed Monday's market session 1.07% lower at $0.93 per share.

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