Flora Growth (FLGC) 15 Aug 232023 Q2 Earnings call transcript

Thank you for standing by. This is the conference operator. Welcome to the Flora Growth Corp. Q2 2023 Results and Corporate Update Conference Call. [Operator Instructions] And the conference is being recorded. Instructions] [Operator

like Officer. conference Please, now Vaiman, to turn Financial Chief go to would over the Dany I ahead.

and to Thank everyone. you, QX welcome On morning, conference XXXX our behalf of operator. the Flora And corporate update good call. team,

operations, inform will wish be by other position, statements any information include financial team estimates Before management certain forward-looking contain concerning today that revenues, and to a and begin, may conditions, statements listeners future prediction results economic we information. partnerships the performance. statements may future other I to be made Today’s from as events, markets, constructed call of forward-looking and that

information those that are described involve recent EDGAR may contribute factors cause to information filings differences expressed that could The to estimates of by no on obligation after at such may sec.gov from results or of information supply undertakes new and company and update forward-looking the the statements. of such company’s only cause date and and implied this circumstances unknown SEDAR the provided Any most regarding any available or call, Factors risks, uncertainties date to the at or accurate as actual in the this other materially known are forward-looking or call. or in information details differ any sedar.com. publicly statements

Clifford have Dany myself, and today, Vaiman, CEO; call Starke, the we On CFO.

unless for The amounts SEDAR. call Clifford the and stated. been Following XXXX in period. that on have will and – available States in note United all question-and-answer press filed the presentation, Also release XXXX XX-Q dollars are this accompanying otherwise and be I [ph] QX mentioned results EDGAR

Clifford. call the over turn now I’ll to

We that operations divest larger which and and operations the had we environment. QX was sustain. its and to needs were decided The could We Colombian to corporate stability includes than what morning were the gross quickly. savings, overhead in in implemented company’s knew we good of Flora saying significant and reduction appointed a direction I call. we line. Thank Colombian changes challenging in for cost Growth make them Welcome welcome late in to for performing not on corporate overhead. by million Dany June you, XXXX margins results $X.X the everyone and this make

we believe While and outcomes States use company deliver in Europe, significant structure United a as adult legalization. favorable upside to and we regulatory We time. are cannabis dependent around in not on both intend Flora do likely

continue core diversity lies we growth believe and are positive. flow of As remain expected cash for to with upside Flora, rebuild flow the the runway cash our we businesses, which to

and Brands on XX range CBD than operates gummy wide with or so sold all distribution Delta of points XX other X, It brand. so the and CBD most is responsible to HCC more any in forth. countries states, for introducing and globally products XX a gummy gummies XX,XXX from world’s over Just popular

TYSON Flora and and branded an with partnerships host additional In exclusive form dealer the near entertainers is HoldCo. to partnership products. and be to Hulk partnership Brands expected HoldCo Hulk The expect sell in includes produce we X.X. form brand Hogan future. the is to July, Just future, Hogan Drip accretive to behind Carma by with a evolved summit Flair’s Carma celebrities and Ric with worldwide

outreach Vessel of quarters. for is The the an Vessel brand and have batteries, countries. base with growth consumer including coming for anticipate distributor factor. loyalty XX technology all extremely are accessories. Vessel is premium Phatebo We pharmaceuticals bait saving product German brand the based of a pens, and leading patented high an

reduce space financial marketing the important continues markets, to to player in to start. the a The to European the Phatebo’s Companies efficient evolution, as new in potential to clear downturn prospects, global facing the about for industry the become will cannabis optimistic the and we’ll costs current returns. broader time market and cannabis build remain weaknesses. higher industry. who economic of believe the models We an a now view the emerge be in sector’s the indication that it’s generate conditions We than long-term therapeutics, particularly consolidate, challenge stronger products within impact can of average withstand

going quarter. go will I’m results Please Dany, the With go who that, to ahead. for the to financial pass over along

Thank you, Clifford.

a expected for of the to Let benefits and by reflect that profile, to commenting do the which reduced failed in come. me start are be on basis quarters year-to-date quarterly quarter results the our both our not cost

lean, We have flows. to the purpose, to expected improve Flora our enabling team cash for be reorganized agile, fit and operating

an expected continue XXX% million, Our XXXX. Gross $XX.X strategy, XXXX. to XXX% the of increase is second form of quarter and XXXX our cost the quarter for resource of to second year-over-year. $X.X half part key the of quarter performance. second compared a but Revenues XXXX, the for XX% increase revenues was million, of were and an In million, of increase profit quarter without optimization of second were sacrificing an the of XXXX cutting to of $XX.X compared first

in results which In and is Brands, million, of December and XXXX driven inclusion the in for acquired and the gross February first respectively. period were $X.X Phatebo profit full Just half The XXXX, an gross increase of XX% growth by XXXX, of revenues year-over-year. was profit

basis, impairment consisting due operations expenses XXXX and of non-cash On loss $X.X $X.X from impact for million Net of was quarter primarily discontinued million. million, substantially first million. loss expenses $XX.X million, of $X.X net and discontinued operations half to million $X.X from loss of non-cash of of million, loss a consolidated for impairment $XX.X of of expenses the the million, expenses $XX.X of the $XX.X was

position. continue market liquidity ahead, generational offers proactive shifts As to Considering we financing. steps prioritize liquidity opportunity additional economic We recent for the the current believe to by in we look intend we a improve sector. market and Flora’s will conditions, to take our obtaining investment

we've are delivering to we in shareholders. confident value to committed and are our set, the We trajectory

I back to the the will now hand question-and-answer for the session. call operator

the are session. Thank you. this [Operator the Instructions] queue, concludes in As question-and-answer questioners no there

would I to remarks. over the any Starke Clifford turn like closing for conference back to

you, ahead. the the forward thank call and all you on great in look you Thank quarters joining today. the We progress continue to Thank and operator, for you updating have day. a

This concludes today's call. conference

disconnect for may your day. participating, Thank You have you pleasant lines. a and