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SNDL Reports Fourth Quarter and Full Year 2024 Financial and Operational Results

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SNDL (NASDAQ: SNDL) reported record financial results for Q4 and full year 2024. Net revenue reached $257.7M in Q4 (+3.7% YoY) and $920.4M for 2024 (+1.3% YoY), driven by strong cannabis business growth of +16.5% in Q4.

Gross profit hit new records at $68.8M in Q4 (+20.0% YoY) and $240.3M for 2024 (+26.2% YoY). The company achieved positive free cash flow of $11.6M in Q4 and $8.9M for the full year. However, Q4 operating loss was $(76.1M), mainly due to SunStream portfolio adjustment of $(65.7M) and Spiritleaf write-off.

Key developments include: Nova Cannabis privatization completion, Indiva acquisition making SNDL Canada's largest infused edibles manufacturer, Florida Department of Health approval for Parallel license transfer, and share repurchase of 10.7M shares at US$1.81 average. The company plans CSE listing in April 2025 and targets $100M annual free cash flow within three years.

SNDL (NASDAQ: SNDL) ha riportato risultati finanziari record per il Q4 e l'intero anno 2024. Il fatturato netto ha raggiunto i 257,7 milioni di dollari nel Q4 (+3,7% rispetto all'anno precedente) e 920,4 milioni di dollari per il 2024 (+1,3% rispetto all'anno precedente), sostenuto da una forte crescita del business della cannabis del +16,5% nel Q4.

Il profitto lordo ha raggiunto nuovi record a 68,8 milioni di dollari nel Q4 (+20,0% rispetto all'anno precedente) e 240,3 milioni di dollari per il 2024 (+26,2% rispetto all'anno precedente). L'azienda ha ottenuto un flusso di cassa libero positivo di 11,6 milioni di dollari nel Q4 e 8,9 milioni di dollari per l'intero anno. Tuttavia, la perdita operativa del Q4 è stata di $(76,1 milioni), principalmente a causa dell'aggiustamento del portafoglio SunStream di $(65,7 milioni) e della cancellazione di Spiritleaf.

Sviluppi chiave includono: il completamento della privatizzazione di Nova Cannabis, l'acquisizione di Indiva che rende SNDL il maggiore produttore canadese di alimenti infusi, l'approvazione del Dipartimento della Salute della Florida per il trasferimento della licenza di Parallel e il riacquisto di 10,7 milioni di azioni a una media di 1,81 dollari USA. L'azienda prevede di quotarsi alla CSE nell'aprile 2025 e mira a raggiungere un flusso di cassa libero annuale di 100 milioni di dollari entro tre anni.

SNDL (NASDAQ: SNDL) reportó resultados financieros récord para el cuarto trimestre y el año completo 2024. Los ingresos netos alcanzaron los $257.7 millones en el cuarto trimestre (+3.7% interanual) y $920.4 millones para 2024 (+1.3% interanual), impulsados por un fuerte crecimiento del negocio de cannabis del +16.5% en el cuarto trimestre.

El beneficio bruto alcanzó nuevos récords con $68.8 millones en el cuarto trimestre (+20.0% interanual) y $240.3 millones para 2024 (+26.2% interanual). La empresa logró un flujo de caja libre positivo de $11.6 millones en el cuarto trimestre y $8.9 millones para el año completo. Sin embargo, la pérdida operativa del cuarto trimestre fue de $(76.1 millones), principalmente debido al ajuste de la cartera de SunStream de $(65.7 millones) y la cancelación de Spiritleaf.

Los desarrollos clave incluyen: la finalización de la privatización de Nova Cannabis, la adquisición de Indiva que convierte a SNDL en el mayor fabricante canadiense de comestibles infusionados, la aprobación del Departamento de Salud de Florida para la transferencia de licencia de Parallel, y la recompra de 10.7 millones de acciones a un promedio de $1.81. La empresa planea una cotización en la CSE en abril de 2025 y tiene como objetivo alcanzar un flujo de caja libre anual de $100 millones en tres años.

SNDL (NASDAQ: SNDL)는 2024년 4분기 및 연간 재무 실적에서 기록적인 결과를 보고했습니다. 순수익은 4분기에 2억 5,770만 달러(+3.7% 전년 대비)와 2024년 전체에서 9억 2,040만 달러(+1.3% 전년 대비)에 도달했으며, 이는 4분기 동안 +16.5%의 강력한 대마초 사업 성장에 의해 주도되었습니다.

총 이익은 4분기에 6,880만 달러(+20.0% 전년 대비) 및 2024년 전체에서 2억 4,030만 달러(+26.2% 전년 대비)로 새로운 기록을 세웠습니다. 이 회사는 4분기에 1,160만 달러의 긍정적인 자유 현금 흐름을 달성했으며, 연간으로는 890만 달러를 기록했습니다. 그러나 4분기 운영 손실은 $(7610만)으로, 주로 SunStream 포트폴리오 조정으로 인한 $(6570만)과 Spiritleaf 상각 때문입니다.

주요 개발 사항으로는: Nova Cannabis의 민영화 완료, Indiva 인수로 SNDL이 캐나다 최대의 주입 식품 제조업체가 됨, 플로리다 보건부의 Parallel 라이선스 이전 승인, 그리고 평균 1.81달러에 1,070만 주의 자사주 매입이 포함됩니다. 이 회사는 2025년 4월에 CSE 상장을 계획하고 있으며, 3년 내 연간 1억 달러의 자유 현금 흐름을 목표로 하고 있습니다.

SNDL (NASDAQ: SNDL) a annoncé des résultats financiers records pour le quatrième trimestre et l'année complète 2024. Le chiffre d'affaires net a atteint 257,7 millions de dollars au quatrième trimestre (+3,7 % par rapport à l'année précédente) et 920,4 millions de dollars pour 2024 (+1,3 % par rapport à l'année précédente), soutenu par une forte croissance de l'activité cannabis de +16,5 % au quatrième trimestre.

Le bénéfice brut a atteint de nouveaux records avec 68,8 millions de dollars au quatrième trimestre (+20,0 % par rapport à l'année précédente) et 240,3 millions de dollars pour 2024 (+26,2 % par rapport à l'année précédente). L'entreprise a réalisé un flux de trésorerie libre positif de 11,6 millions de dollars au quatrième trimestre et de 8,9 millions de dollars pour l'année entière. Cependant, la perte opérationnelle du quatrième trimestre s'élevait à $(76,1 millions), principalement en raison de l'ajustement du portefeuille SunStream de $(65,7 millions) et de l'amortissement de Spiritleaf.

Les développements clés incluent : l'achèvement de la privatisation de Nova Cannabis, l'acquisition d'Indiva qui fait de SNDL le plus grand fabricant canadien de produits comestibles infusés, l'approbation du ministère de la Santé de la Floride pour le transfert de licence de Parallel, et le rachat de 10,7 millions d'actions à un prix moyen de 1,81 USD. L'entreprise prévoit une cotation à la CSE en avril 2025 et vise un flux de trésorerie libre annuel de 100 millions de dollars dans les trois ans.

SNDL (NASDAQ: SNDL) hat für das 4. Quartal und das gesamte Jahr 2024 rekordverdächtige finanzielle Ergebnisse gemeldet. Der Nettoumsatz erreichte im 4. Quartal 257,7 Millionen USD (+3,7% im Jahresvergleich) und 920,4 Millionen USD für 2024 (+1,3% im Jahresvergleich), was durch ein starkes Wachstum des Cannabisgeschäfts von +16,5% im 4. Quartal angetrieben wurde.

Der Bruttogewinn erreichte neue Rekorde mit 68,8 Millionen USD im 4. Quartal (+20,0% im Jahresvergleich) und 240,3 Millionen USD für 2024 (+26,2% im Jahresvergleich). Das Unternehmen erzielte im 4. Quartal einen positiven freien Cashflow von 11,6 Millionen USD und 8,9 Millionen USD für das gesamte Jahr. Allerdings betrug der operative Verlust im 4. Quartal $(76,1 Millionen), hauptsächlich aufgrund der Anpassung des SunStream-Portfolios in Höhe von $(65,7 Millionen) und der Abschreibung von Spiritleaf.

Wichtige Entwicklungen umfassen: den Abschluss der Privatisierung von Nova Cannabis, die Übernahme von Indiva, die SNDL zum größten Hersteller von infundierten Lebensmitteln in Kanada macht, die Genehmigung des Gesundheitsministeriums von Florida für die Lizenzübertragung von Parallel und den Rückkauf von 10,7 Millionen Aktien zu einem Durchschnittspreis von 1,81 USD. Das Unternehmen plant eine CSE-Notierung im April 2025 und strebt an, innerhalb von drei Jahren einen jährlichen freien Cashflow von 100 Millionen USD zu erreichen.

Positive
  • Record revenue: $920.4M for 2024 (+1.3% YoY)
  • Record gross profit: $240.3M for 2024 (+26.2% YoY)
  • Positive free cash flow: $8.9M for 2024
  • Strong cannabis business growth: +16.5% in Q4
  • No outstanding debt with $218.4M unrestricted cash
  • Cannabis retail same-store sales up 6.3% in Q4
Negative
  • Operating loss of $76.1M in Q4 2024
  • $65.7M negative valuation adjustment on SunStream portfolio
  • $15M Spiritleaf intangible asset write-off
  • Liquor retail same-store sales declined 3.5% in Q4
  • Negative cash flow of $44.6M in Q4 2024

Insights

SNDL's Q4 and full-year 2024 results show significant improvement in fundamental business metrics despite headline operating losses. The company achieved record net revenue of $257.7M for Q4 (+3.7% YoY) and $920.4M for the full year (+1.3% YoY), with the cannabis segment driving growth at +16.5% and +10.6% respectively.

Most impressive is SNDL's margin expansion, with gross profit increasing 20% to $68.8M in Q4 and 26.2% to $240.3M for the full year. The gross margin reached a record 26.7% in Q4, improving by 3.6 percentage points year-over-year.

The reported operating loss of $76.1M in Q4 requires context - it's primarily driven by $81.3M in exceptional items: a $65.7M negative valuation adjustment of the SunStream portfolio, a $15M Spiritleaf intangible write-off, and $0.6M in restructuring charges. Excluding these, underlying operations would have been profitable.

Most critically for a cannabis company, SNDL achieved positive free cash flow of $11.6M in Q4 and $8.9M for the full year - a substantial achievement in this sector. With $218.4M in unrestricted cash and no debt, SNDL maintains financial flexibility while executing strategic initiatives including the Indiva acquisition, Nova privatization, and share repurchases.

The segment performance reveals strong cannabis operations growth offsetting challenges in liquor retail, demonstrating the value of SNDL's diversified approach. Management's target of $100M in annual positive free cash flow within three years represents substantial potential upside if executed successfully.

The Company reports Record Full Year Net Revenue, Gross Profit and Gross Margin, as well as positive Cash Flow and Free Cash Flow 

CALGARY, AB, March 18, 2025 /PRNewswire/ - SNDL Inc. (NASDAQ: SNDL) ("SNDL" or the "Company") reported its financial and operational results for the full year and fourth quarter ended December 31, 2024. All financial information in this press release is reported in millions of Canadian dollars unless otherwise indicated.

SNDL has also posted a supplemental investor presentation and shareholder letter on its website, found at https://sndl.com.

The Company will hold a conference call and webcast presentation at 10:00 a.m. EDT (8:00 a.m. MDT) on Tuesday, March 18, 2025. The conference call details can be found below.

MANAGEMENT HIGHLIGHTS

  • Net revenue for the fourth quarter of 2024 was $257.7 million, and $920.4 million for the full year of 2024, representing growth of +3.7% and +1.3%, respectively, when compared to the same periods of the previous year. Both the quarter and the full year represent new records for the corporation, driven by strong growth from our combined Cannabis business of +16.5% in the fourth quarter and +10.6% over the full year.
  • Gross profit also reached new records, with $68.8 million in the fourth quarter of 2024, and $240.3 million for the full year, representing growth of +20.0% and +26.2%, respectively, when compared to the same periods of the previous year.
  • Gross margin (1) of 26.7% in the fourth quarter of 2024 and 26.1% for the full year are also new records, representing improvements of +3.6 and +5.2 percentage points, respectively, when compared to the same periods of the previous year.
  • Operating loss was $(76.1) million for the fourth quarter of 2024, driven by a negative valuation adjustment of the SunStream portfolio of $(65.7) million, a Spiritleaf intangible write-off of $(15.0) million, and restructuring charges of $(0.6) million. Excluding these exceptional items adding up to $(81.3) million, our underlying Operating Income would have been positive for the quarter. These exceptional items largely contributed to the full year reported Operating loss of $(103.8) million.
  • Cash flow was negative by $(44.6) million in the fourth quarter of 2024, driven by the acquisition of Nova's minority equity interest, as well as the repurchase of SNDL's common shares. Full-year cash flow was positive by $23.3 million.
  • Free cash flow (1) was positive both in the fourth quarter of 2024, at $11.6 million, and for the full year, at $8.9 million.

"We are pleased with the continued progress reflected in our fourth-quarter and full-year 2024 results, as we set new records and exceeded our commitment to achieving break-even free cash flow for the year. We have accomplished this while continuing to transform our business by investing in growth opportunities and strengthening our organizational capabilities. The SNDL team remains dedicated to raising the bar in 2025 and beyond," said Zach George, Chief Executive Officer of SNDL.

"During the fourth quarter of 2024 and the first months of 2025 up to this date, we took several strategic steps to enhance our foundation for long-term success and shareholder value:

  • Completed the privatization of Nova Cannabis Inc. through the acquisition of the remaining minority equity interest
  • Acquired business and assets of Indiva Inc. ("Indiva"), positioning SNDL as the largest manufacturer of infused edibles in Canada
  • Received approval from the Florida Department of Health for the transfer of the Parallel (Surterra Holdings, Inc.) license - an important milestone and prerequisite for completing the Parallel restructuring process
  • Repurchased 10,764,107 SNDL common shares for cancellation at an average price of US$1.81 per share
  • Acquired 4,350,000 common shares of High Tide Inc. ("High Tide"), equivalent to 5.4% ownership

In addition to these achievements, the Company has applied for listing of its common shares on the Canadian Securities Exchange ("CSE") and anticipate the CSE listing to go live in April 2025, providing our shareholders with increased flexibility and optionality.

The progress made during the last year in operational performance and financial discipline is undeniable, and we are encouraged by the many opportunities we still have ahead of us. Our strong balance sheet, including $218.4 million of unrestricted cash as of December 31, 2024, is not only a competitive differentiator but also gives us the flexibility to thoughtfully deploy capital into organic and inorganic investments with attractive returns. Our plan is to continue building strong fundamentals, as we expect to build momentum through 2025 with the goal of generating $100 million in positive annual free cash flow within the next three years.

We want to thank our employees for their dedication and passion in delivering the progress we made during the last year, as well as our shareholders for their continued trust and support," concluded Zach George.

TOTAL COMPANY HIGHLIGHTS


Three months ended December 31


Year ended December 31


($000s)

2024


2023


% Change


2024


2023


% Change


IFRS Financial Measures



















Net revenue


257,679



248,450



3.7

%


920,448



909,006



1.3

%

Gross profit


68,799



57,336



20.0

%


240,331



190,415



26.2

%

Operating loss


(76,089)



(85,017)



10.5

%


(103,811)



(163,171)



36.4

%

Change in cash and cash equivalents


(44,617)



(6,942)



-543

%


23,318



(84,545)



128

%




















Non-IFRS Financial Measures (1)



















Gross margin


26.7

%


23.1

%


3.6

pp


26.1

%


20.9

%


5.2

pp

Adjusted operating loss


(60,472)



(27,094)



-123

%


(86,144)



(98,028)



12

%

Free cash flow


11,625



1,383



741

%


8,872



(60,883)



115

%

(1)

Gross Margin is a supplementary financial measure calculated by dividing Gross Profit by Net Revenue. Adjusted operating income (loss) and Free Cash Flow are specified financial measures that do not have a standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures reported by other companies. See "Non-IFRS Measures" section below for further information.

BUSINESS SEGMENT HIGHLIGHTS

SNDL's business is operated and reported in four segments: Liquor Retail, Cannabis Retail, Cannabis Operations and Investments. Corporate and Shared Service expenses, as well as the revenue elimination associated with the Cannabis Operations sales to the provincial boards that are expected to be subsequently repurchased by the Company's licensed retail subsidiaries for resale, are reported as "Corporate".


Three months ended December 31


Year ended December 31


($000s)

2024


2023


% Change


2024


2023


% Change


Net Revenue



















Liquor Retail


154,080



159,493



-3.4

%


555,259



578,895



-4.1

%

Cannabis Retail


83,170



75,152



10.7

%


311,689



289,980



7.5

%

Cannabis Operations


37,092



26,044



42.4

%


109,470



87,071



25.7

%

Investments






0

%






0

%

Corporate


(16,663)



(12,239)



-36.1

%


(55,970)



(46,940)



-19.2

%

Total


257,679



248,450



3.7

%


920,448



909,006



1.3

%




















Operating Income



















Liquor Retail


12,325



10,120



21.8

%


34,781



24,655



41.1

%

Cannabis Retail


(8,997)



(849)



-959.7

%


(1,742)



4,840



-136.0

%

Cannabis Operations


4,391



(65,749)



106.7

%


2,663



(112,744)



102.4

%

Investments


(63,724)



(5,217)



-1121.5

%


(50,013)



11,746



-525.8

%

Corporate


(20,084)



(23,322)



13.9

%


(89,500)



(91,668)



2.4

%

Total


(76,089)



(85,017)



-10.5

%


(103,811)



(163,171)



400.2

%




















Adjusted Operating Income



















Liquor Retail


12,325



10,120



21.8

%


34,781



24,655



41.1

%

Cannabis Retail


6,003



(849)



807.1

%


13,258



4,840



173.9

%

Cannabis Operations


4,439



(7,715)



157.5

%


3,091



(52,728)



105.9

%

Investments


(63,724)



(5,217)



-1121.5

%


(50,013)



11,746



-525.8

%

Corporate


(19,515)



(23,433)



16.7

%


(87,261)



(86,541)



-0.8

%

Total


(60,472)



(27,094)



-1355.1

%


(86,144)



(98,028)



133.4

%

Liquor Retail 

SNDL is Canada's largest private sector liquor retailer, operating at March 17, 2025 in 165 locations, predominantly in Alberta, under its three retail banners: "Wine and Beyond" (13), "Liquor Depot" (19), and "Ace Liquor" (133). 


Three months ended December 31


Year ended December 31


($000s)

2024


2023


% Change


2024


2023


% Change


Net Revenue


154,080



159,493



-3.4

%


555,259



578,895



-4.1

%

Gross Profit


38,236



38,396



-0.4

%


139,706



137,286



1.8

%

Gross margin


24.8

%


24.1

%


0.7

pp


25.2

%


23.7

%


1.4

pp

Operating Income


12,325



10,120



21.8

%


34,781



24,655



41.1

%

Adjusted Operating Income


12,325



10,120



21.8

%


34,781



24,655



41.1

%

  • Net revenue for Liquor Retail continued to decline in the fourth quarter of 2024, although at a slightly slower pace than in previous quarters, as we continue to experience market demand softness. Same store sales (2) decreased by -3.5% in the fourth quarter, and -4.6% for the full year.
  • Operating Income expanded significantly in both the fourth quarter and the full year, despite the revenue declines, driven by the introduction early in the year of our proprietary data licensing program, enhanced pricing and mix management strategies, including private label expansion at accretive margins, as well as cost optimization and in-store productivity improvements.

(2)

Same store sales are specified financial measures that do not have standardized meanings prescribed by IFRS Accounting Standards and therefore may not be comparable to similar measures used by other companies. Refer to the "Non-IFRS Financial Measures and Other Measures" section of this MD&A for further information.

Cannabis Retail

SNDL is one of Canada's largest private-sector cannabis retailer, operating at March 17, 2025 in 185 locations under its three retail banners: "Value Buds" (117), "Spiritleaf" (67, of which 8 are corporate stores and 59 are franchise stores), and "Superette" (1). The Company's Cannabis Retail strategy is based on several pillars, including the quality of its store locations, its range of products, and the unique experiences provided to customers. Using data and insights from a large volume of monthly transactions enables SNDL to leverage technology and analytics to inform and improve its retail strategy.


Three months ended December 31


Year ended December 31


($000s)

2024


2023


% Change


2024


2023


% Change


Net Revenue


83,170



75,152



10.7

%


311,689



289,980



7.5

%

Gross Profit


20,490



20,045



2.2

%


78,827



73,690



7.0

%

Gross margin


24.6

%


26.7

%


-2.0

pp


25.3

%


25.4

%


-0.1

pp

Operating Income


(8,997)



(849)



-959.7

%


(1,742)



4,840



-136.0

%

Adjusted Operating Income


6,003



(849)



807.1

%


13,258



4,840



173.9

%

  • Net revenue for Cannabis Retail grew dynamically over the full year, and particularly in the fourth quarter, as our Value Buds banner continues to gain market share, and we also run some additional promotional activities in the fourth quarter. Same store sales increased by +6.3% in the fourth quarter, and +3.5% over the full year.
  • Operating Income was impacted in the fourth quarter by a $15 million Spiritleaf intangible asset impairment, as we have converted several Spiritleaf stores into Value Buds. These conversions are increasing revenue, profitability and cash flow, and therefore create shareholder value. However, when the profit pool associated with the Spiritleaf intangible asset was reduced, it triggered the one-time non-cash impairment.
  • Adjusted Operating Income excludes the Spiritleaf intangible impairment, showing the underlying operational profitability of the segment, which has seen a material improvement when compared to the previous year, both in the fourth quarter and the full year.

Cannabis Operations

SNDL has a diverse brand portfolio from value to premium, emphasizing premium inhalable formats and a full suite of 2.0 products. With enhanced procurement capabilities and plans to continue evolving toward a cost-effective cultivation and manufacturing operation, the Cannabis Operations segment is a key enabler of SNDL's vertical integration strategy.


Three months ended December 31


Year ended December 31


($000s)

2024


2023


% Change


2024


2023


% Change


Net Revenue


37,092



26,044



42.4

%


109,470



87,071



25.7

%

Gross Profit


10,073



(1,105)



1011.6

%


21,798



(20,561)



206.0

%

Gross margin


27.2

%


-4.2

%


31.4

pp


19.9

%


-23.6

%


43.5

pp

Operating Income


4,391



(65,749)



106.7

%


2,663



(112,744)



102.4

%

Adjusted Operating Income


4,439



(7,715)



157.5

%


3,091



(52,728)



105.9

%

  • Cannabis Operations reported a significant step up in revenues and profitability throughout the year, and particularly in the fourth quarter of 2024.
  • Net revenue expansion is driven by increased provincial board and Business-to-Business distribution and a continued focus on consumer innovation, quality and operational efficiencies. Reported revenue includes $7.5 million from Indiva between November 4 and December 31, 2024.
  • Gross profit and Operating Income improvements are driven by efficiency improvements from scale as well as productivity initiatives.

Investments

  • As of December 31, 2024, the Company has deployed capital to a portfolio of cannabis-related investments with a carrying value of $449.1 million, including $413.1 million to SunStream Bancorp Inc. ("SunStream"). This carrying value was reduced by $51.3 million during the fourth quarter of 2024, mainly driven by a negative valuation adjustment of the SunStream portfolio.
  • In the fourth quarter of 2024, the investment portfolio generated negative operating income of $(63.7) million, including a $(65.7) million negative valuation adjustment of equity-accounted investees (SunStream portfolio). This non-cash valuation adjustment is the consequence of multiple factors, including increased U.S. industry risk and volatility following the negative adult use Florida vote last November, as well as the worsening performance of Parallel and Skymint investments due to delays in the completion of their restructuring process while operating in challenging competitive environments.
  • The negative Florida election vote to legalize adult use cannabis in this state is seen as an unfavorable development by the industry and the investor community, as evidenced by the significant declines in equity valuation of different Cannabis multi-state-operators. For SNDL's investment in SunStream assets, we find a positive in this development, as it gives Parallel more time to complete its restructuring process without the additional competitive pressure of a changing market environment.
  • Subsequent to the end of the fourth quarter, on February 4, 2025, the Florida Department of Health approved the transfer of Parallel's license. While a few additional steps are still required, this is an important milestone in completing Parallel's restructuring process.
  • On March 17, 2025 the Company announced the purchase of 4,350,000 common shares of High Tide, equivalent to 5.4% ownership, at an average price of US$2.46 per share.

Equity Position

  • $667.6 million of unrestricted cash, marketable securities and investments, including investments in equity-accounted investees, and no outstanding debt at December 31, 2024, resulting in a net book value of $1.1 billion.
  • On November 14, 2024, the Company announced that its board of directors had approved a renewal of the share repurchase program upon its expiry on November 20, 2024. The Company's share repurchase program continues to be available to lower the outstanding share float. SNDL will continue to assess opportunities to utilize the program to the extent that management believes it is in the best interest of SNDL's shareholders. During the three months ending December 31, 2024, the Company repurchased 5,002,372 common shares for cancelation at an average price of US$1.84 per share. Subsequent to the quarter end, in January and February 2025 the Company repurchased an additional 5,761,735 common shares for cancellation at an average price of US$1.79 per share. This brings the total number of common shares repurchased during the last 6 months to a total of 10,764,107 at an average price of US$1.81 per share.

This press release is intended to be read in conjunction with the Company's consolidated financial statements and the notes thereto for the years ended December 31, 2024 and 2023, and the accompanying Management's Discussion and Analysis. These documents are available under the Company's profile on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov/edgar.shtml.

CONFERENCE CALL  

The Company will hold a conference call and webcast presentation at 10:00 a.m. EDT (8:00 a.m. MDT) on Tuesday, March 18, 2025.

WEBCAST ACCESS
To access the live webcast of the call, please visit the following link:

https://edge.media-server.com/mmc/p/yxxmbsby

REPLAY

A replay of the webcast will be available at https://sndl.com/financials/quarterly-results/default.aspx

ABOUT SNDL INC. 

SNDL Inc. (NASDAQ: SNDL), through its wholly owned subsidiaries, is one of the largest vertically integrated cannabis companies and the largest private-sector liquor and cannabis retailer in Canada, with retail banners that include Ace Liquor, Wine and Beyond, Liquor Depot, Value Buds, Spiritleaf and Superette. With products available in licensed cannabis retail locations nationally, SNDL's consumer-facing cannabis brands include Top Leaf, Contraband, Palmetto, Bon Jak, La Plogue, Versus, Value Buds, Grasslands, Vacay, Pearls by Grön, No Future and Bhang Chocolate. SNDL's investment portfolio seeks to deploy strategic capital through direct and indirect investments and partnerships throughout the North American cannabis industry. For more information, please visit www.sndl.com

Forward-Looking Information Cautionary Statement   
This news release includes statements containing certain "forward-looking information" within the meaning of applicable securities law ("forward-looking statements"), including, but not limited to, statements regarding the Company's operational goals and plans, the anticipated impact of the Company's strategic steps on long-term success and shareholder value, the Company's intentions to activate a listing on the CSE and anticipated timing thereof, the anticipated benefit of the Company's strong balance sheet, the Company's strategy with respect to its operating segments, the impact of the negative Florida election vote to legalize adult use cannabis, expectations with respect to the Parallel restructuring process, the Company's margin improvement initiatives, the Company's ability to achieve long-term, sustainable profitability, growth and efficiencies, the Company's long-term strategic plan, the benefits of the Company's Investment Segment portfolio, expectations with respect to sharing information with investors, the Company's retail strategy, expectations with respect to the Company's Cannabis Operations segment, the Company's vertical integration strategy, the Company's proprietary data licensing program, expansion of product offerings (including the expected expansion of the Company's private labels), performance of the Company's investments, including through the SunStream joint venture and SunStream USA Group, expectations with respect to the SunStream USA Group, the timing and closing of the transactions with Parallel and Skymint, potential local and international regulatory changes, the share repurchase program, including the anticipated benefits thereof, and any other potential forms of shareholder value creation. Forward-looking statements are frequently characterized by words such as "aim", "anticipate", "assume", "believe", "contemplate", "continue", "could", "due", "estimate", "expect", "goal", "intend", "may", "objective", "plan", "predict", "potential", "positioned", "pioneer", "seek", "should", "target", "will", "would", and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology. These forward-looking statements are based on current expectations, estimates, forecasts and projections about the Company's business and the industry in which it operates and management's beliefs and assumptions and are not guarantees of future performance or development and involve known and unknown risks, uncertainties and other factors that are in some cases beyond its control. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Please see "Risk Factors" in the Company's Annual Information Form dated March 18, 2025, and the risk factors included in our other public disclosure documents for a discussion of the material risk factors that could cause actual results to differ materially from the forward-looking information. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.   

Condensed Consolidated Statement of Loss and Comprehensive Loss
(Expressed in thousands of Canadian dollars, except per share amounts)



Year ended

December 31




2024



2023


Net revenue



920,448




909,006


Cost of sales



680,117




718,591


Gross profit



240,331




190,415











Investment income



15,551




5,259


Share of (loss) profit of equity-accounted investees



(65,459)




6,758











General and administrative



187,243




199,725


Sales and marketing



12,004




15,045


Research and development



346




324


Depreciation and amortization



54,250




60,216


Share-based compensation



20,037




15,400


Restructuring costs



2,667




19,573


Asset impairment, net



17,317




54,967


Loss on disposition of assets



370




353


Operating loss



(103,811)




(163,171)











Other expenses, net



(1,798)




(8,845)


Loss before income tax



(105,609)




(172,016)


Income tax recovery



9,405





Net loss from continuing operations



(96,204)




(172,016)


Net loss from discontinued operations






(4,535)


Net loss



(96,204)




(176,551)











Equity-accounted investees - share of other comprehensive income (loss)



31,489




(12,771)


Investments at FVOCI - change in fair value



1,864





Comprehensive loss



(62,851)




(189,322)











Net loss from continuing operations attributable to:









Owners of the Company



(94,796)




(168,125)


Non-controlling interest



(1,408)




(3,891)





(96,204)




(172,016)


Net loss attributable to:









Owners of the Company



(94,796)




(172,660)


Non-controlling interest



(1,408)




(3,891)





(96,204)




(176,551)


Comprehensive loss attributable to:









Owners of the Company



(61,443)




(185,431)


Non-controlling interest



(1,408)




(3,891)


Condensed Consolidated Statement of Financial Position
(Expressed in thousands of Canadian dollars)

As at

December 31, 2024


December 31, 2023









Assets







Current assets







Cash and cash equivalents


218,359



195,041


Restricted cash


19,815



19,891


Marketable securities


139



225


Accounts receivable


28,118



27,059


Biological assets


1,187



429


Inventory


127,919



129,060


Prepaid expenses and deposits


16,860



22,464


Investments


27,560



3,400


Assets held for sale


19,051



6,375


Net investment in subleases


2,832



2,970




461,840



406,914


Non-current assets







Long-term deposits and receivables


3,679



4,837


Right of use assets


115,435



129,679


Property, plant and equipment


145,810



152,916


Net investment in subleases


15,354



18,396


Intangible assets


61,325



73,149


Investments


8,427



29,660


Equity-accounted investees


413,124



538,331


Goodwill


124,248



119,282


Total assets


1,349,242



1,473,164









Liabilities







Current liabilities







Accounts payable and accrued liabilities


56,275



68,210


Lease liabilities


34,256



30,537


Derivative warrants


26



4,400




90,557



103,147


Non-current liabilities







Lease liabilities


118,017



136,492


Other liabilities


7,312



4,185


Total liabilities


215,886



243,824









Shareholders' equity







Share capital


2,346,728



2,375,950


Warrants


667



2,260


Contributed surplus


57,156



73,014


Contingent consideration




2,279


Accumulated deficit


(1,323,965)



(1,260,851)


Accumulated other comprehensive income


52,770



19,417


Total shareholders' equity


1,133,356



1,212,069


Non-controlling interest




17,271


Total liabilities and shareholders' equity


1,349,242



1,473,164


Condensed Consolidated Statement of Cash Flows
(Expressed in thousands of Canadian dollars)



Year ended

December 31




2024



2023


Cash provided by (used in):









Operating activities









Net loss for the period



(96,204)




(176,551)


Adjustments for:









Income tax recovery



(9,405)





Interest and fee income



(15,637)




(14,517)


Change in fair value of biological assets



(892)




7,936


Share-based compensation



20,037




15,400


Depreciation and amortization



56,711




64,946


Loss on disposition of assets



370




353


Inventory impairment and obsolescence



3,707




30,644


Finance costs, net



7,161




11,362


Change in estimate of fair value of derivative warrants



(4,374)




(6,602)


Unrealized foreign exchange loss



108




(13)


Transaction costs



164




1,221


Bargain purchase gain



(5,456)





Asset impairment, net



17,317




54,967


Share of loss (profit) of equity-accounted investees



65,459




(6,758)


Realized loss on settlement of marketable securities






138,874


Unrealized loss (gain) on marketable securities



86




(129,616)


Proceeds from settlement of marketable securities






6,704


Income distributions from equity-accounted investees



10,715





Interest received



12,494




13,563


Change in non-cash working capital



(7,447)




(32,875)


Net cash provided by (used in) operating activities from continuing operations



54,914




(20,962)


Net cash provided by operating activities from discontinued operations






4,314


Net cash provided by (used in) operating activities



54,914




(16,648)


Investing activities









Additions to property, plant and equipment



(8,615)




(7,845)


Additions to intangible assets



(2,404)




(87)


Changes to investments



(22,617)




(732)


Capital refunds (contributions) to equity-accounted investees



168




(25,089)


Capital distributions from equity-accounted investees



89,758





Proceeds from disposal of property, plant and equipment



734




1,213


Acquisitions, net of cash acquired



(39,644)




3,695


Change in non-cash working capital



383




4,028


Net cash provided by (used in) investing activities



17,763




(24,817)


Financing activities









Change in restricted cash



76




(553)


Payments on lease liabilities, net



(36,952)




(41,013)


Repurchase of common shares



(13,219)




(1,536)


Proceeds from issuance of shares, net of costs



(59)





Issuance of common shares by subsidiaries



174





Distributions declared by subsidiaries






(20)


Change in non-cash working capital



621




42


Net cash used in financing activities



(49,359)




(43,080)


Change in cash and cash equivalents



23,318




(84,545)


Cash and cash equivalents, beginning of period



195,041




279,586


Cash and cash equivalents, end of period



218,359




195,041


NON-IFRS MEASURES

Certain specified financial measures in this news release are non-IFRS measures. These terms are not defined by IFRS and, therefore, may not be comparable to similar measures reported by other companies. These non-IFRS financial measures should not be considered in isolation or as an alternative for or superior to measures of performance prepared in accordance with IFRS. These measures are presented and described in order to provide shareholders and potential investors with additional measures in understanding the Company's operating results in the same manner as the management team.

ADJUSTED OPERATING INCOME (LOSS)
Adjusted operating income (loss) is a non-IFRS financial measure which the Company uses to evaluate its operating performance in a similar manner to its management team. The Company defines adjusted operating income (loss) as operating income (loss) less restructuring costs (recovery), goodwill and intangible asset impairments and asset impairments triggered by restructuring activities.

The following tables reconcile adjusted to un-adjusted operating income (loss) for the periods noted.

($000s)

Liquor

Retail


Cannabis

Retail


Cannabis

Operations


Investments


Corporate


Total


Three months ended December 31, 2024



















Operating income (loss)


12,325



(8,997)



4,391



(63,724)



(20,084)



(76,089)


Adjustments:



















Restructuring costs






48





569



617


Goodwill and intangible asset impairments




15,000









15,000


Adjusted operating income (loss)


12,325



6,003



4,439



(63,724)



(19,515)



(60,472)


 

($000s)

Liquor

Retail


Cannabis

Retail


Cannabis

Operations


Investments


Corporate


Total


Three months ended December 31, 2023



















Operating income (loss)


10,120



(849)



(65,749)



(5,217)



(23,322)



(85,017)


Adjustments:



















Restructuring costs (recovery)






13,398





(111)



13,287


Goodwill and intangible asset impairments






29,000







29,000


Impairments triggered by restructuring






15,636







15,636


Adjusted operating income (loss)


10,120



(849)



(7,715)



(5,217)



(23,433)



(27,094)


 

($000s)

Liquor

Retail


Cannabis

Retail


Cannabis

Operations


Investments


Corporate


Total


Year ended December 31, 2024



















Operating income (loss)


34,781



(1,742)



2,663



(50,013)



(89,500)



(103,811)


Adjustments:



















Restructuring costs






428





2,239



2,667


Goodwill and intangible asset impairments




15,000









15,000


Adjusted operating income (loss)


34,781



13,258



3,091



(50,013)



(87,261)



(86,144)


 

($000s)

Liquor

Retail


Cannabis

Retail


Cannabis

Operations


Investments


Corporate


Total


Year ended December 31, 2023



















Operating income (loss)


24,655



4,840



(112,744)



11,746



(91,668)



(163,171)


Adjustments:



















Restructuring costs






14,446





5,127



19,573


Goodwill and intangible asset impairments






29,934







29,934


Impairments triggered by restructuring






15,636







15,636


Adjusted operating income (loss)


24,655



4,840



(52,728)



11,746



(86,541)



(98,028)


GROSS MARGIN

Gross margin is a supplementary financial measure calculated by dividing gross profit by net revenue for the periods noted.

FREE CASH FLOW 

Free cash flow is a non-IFRS financial measure which the Company uses to evaluate its financial performance, providing information which management believes to be useful in understanding and evaluating the Company's ability to generate positive cash flows as it removes cash used for non-operational items. The Company defines free cash flow as the total change in cash and cash equivalents less cash used for common share repurchases, dividends (if any), changes to debt instruments, changes to long-term investments, net cash used for acquisitions plus cash provided by dispositions (if any).

The following table reconciles free cash flow to change in cash and cash equivalents for the periods noted.



Three months ended

December 31



Year ended

December 31


($000s)


2024



2023



2024



2023


Change in cash and cash equivalents



(44,617)




(6,942)




23,318




(84,545)


Adjustments

















Repurchase of common shares



13,219







13,219




1,536


Changes to long-term investments



5,033




8,325




(67,309)




25,821


Acquisitions, net of cash acquired



37,990







39,644




(3,695)


Free cash flow



11,625




1,383




8,872




(60,883)


SAME STORE SALES
Same store sales is a non-IFRS financial measure which the Company uses to evaluate its financial performance in its retail segments. Same store sales provides information which management believes to be useful to investors, analysts and others in understanding and evaluating the Company's sales trends excluding the effect of the opening and closure of stores.

Same store sales refers to the revenue generated by the Company's existing retail locations during the current and prior comparison periods.

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/sndl-reports-fourth-quarter-and-full-year-2024-financial-and-operational-results-302403826.html

SOURCE SNDL Inc.

FAQ

What was SNDL's revenue growth in Q4 2024?

SNDL's Q4 2024 revenue was $257.7M, up 3.7% year-over-year, with cannabis business growing 16.5%.

How much free cash flow did SNDL generate in 2024?

SNDL generated positive free cash flow of $8.9M for full-year 2024 and $11.6M in Q4 2024.

How many shares did SNDL repurchase and at what price?

SNDL repurchased 10,764,107 shares at an average price of US$1.81 per share over six months.

What is SNDL's cash position as of December 31, 2024?

SNDL held $218.4M in unrestricted cash with no outstanding debt as of December 31, 2024.

What is SNDL's free cash flow target for the next three years?

SNDL aims to generate $100M in positive annual free cash flow within the next three years.
SNDL INC

NASDAQ:SNDL

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1.43%
Beverages - Wineries & Distilleries
Consumer Defensive
Link
Canada
Calgary