Press release
SNDL Reports Second Quarter 2024 Financial and Operational Results
The Company reports record Gross Margin and material improvements in profitability and Free Cash Flow year-over-year CALGARY, AB, Aug. 1, 2024 /PRNewswire/ -
About this update from Sndl Inc.
[{"type":"text","content":"The Company reports record Gross Margin and material improvements in profitability and Free Cash Flow year-over-year \nCALGARY, AB, Aug. 1, 2024 /PRNewswire/ - SNDL Inc. (NASDAQ: SNDL) (\"SNDL\" or the \"Company\") reported its financial and operational results for the second quarter ended June 30, 2024. All financial information in this press release is reported in millions of Canadian dollars unless otherwise indicated.\n\n \n \n \n \n \n \n\n \nSNDL has also posted a supplemental investor presentation on its website, found at https://sndl.com.\nThe Company will hold a conference call and webcast presentation at 10:00 a.m. EDT (8:00 a.m. MDT) on Friday, August 2, 2024. The conference call details can be found below.\nSECOND QUARTER 2024 FINANCIAL AND OPERATIONAL HIGHLIGHTS\nNet revenue for the second quarter of 2024 was $228.1 million, compared to $231.9 million in the second quarter of 2023, a decrease of 1.6%. This decrease was driven by market softness in the Liquor Retail segment, while both Cannabis Retail and Cannabis Operations segments posted strong growth. This represents an increase of 15.4% in net revenue quarter on quarter, as compared to net revenue of $197.8 million in the first quarter of 2024, mainly attributed to business seasonality.Achieved a gross profit of $58.2 million, representing a record gross margin of 25.5% of sales in the second quarter of 2024, up from 22.4% in the second quarter of 2023. The 12% improvement in gross profit year over year, or 15.4% improvement quarter on quarter, highlights the continuous success of the Company's margin improvement initiatives, including the data sales programs, mix optimization and supply chain productivity initiatives.Cash flow was negative $6.0 million in the second quarter of 2024, compared to negative $27.8 million in the second quarter of 2023, a 78% improvement driven by the increase in profitability and smaller working capital build up.Free cash flow in the second quarter of 2024 was negative $5.6 million, compared to negative $18.5 million in the second quarter of 2023, a 70% improvement driven by profitability and working capital management improvements.Operating loss was $4.8 million for the second quarter of 2024, compared to a loss of $29.6 million in the second quarter of 2023, an 84% improvement primarily driven by margin expansion and lower Selling...