Press release
Sundial Reports First Quarter 2020 Financial Results
CALGARY, May 15, 2020 /PRNewswire/ - Sundial Growers Inc. (Nasdaq: SNDL) ("Sundial" or the "Company") reported its financial and operational results for first
About this update from Sndl Inc.
[{"type":"text","content":"CALGARY, May 15, 2020 /PRNewswire/ - Sundial Growers Inc. (Nasdaq: SNDL) (\"Sundial\" or the \"Company\") reported its financial and operational results for first quarter 2020 ended March 31, 2020. \n\n \n \n \n \n \n \n\n \nFirst quarter 2020 financial and operational highlights\nStrategic shift away from \"Heal, Help and Play\" strategy to concentrate on Canadian recreational cannabis with a focus on inhalable products. Continued progress made on business optimization initiatives with annualized net cost reductions of approximately $28 million in 2020. Net revenue of $23 million, an increase of 7% over the prior quarter. Net cannabis revenue of $16.5 million, excluding provisions of $2.5 million, an 18% increase over the prior quarter Branded net cannabis sales increased to 54% of total net cannabis sales in the first quarter of 2020 vs. 33% in the fourth quarter of 2019. Overcame significant processing challenges and improved supply chain capabilities during the quarter; recently, 'On Time In Full' (OTIF) metrics have surpassed 90%. Inventory write-down of $14.4 million, on dried cannabis and cannabis extracts, primarily driven by product price compression due to broader trends of oversupply in the Canadian market. Since January 2020, the Company has reduced its workforce by 51% to optimize its cost structure to align with market conditions. Sundial currently has 420 employees. \"We have made significant progress in improving our cost structure and liquidity in the past few months,\" said Zach George, Chief Executive Officer of Sundial. \"The agility of our \"craft-at-scale\" cultivation strategy also became evident as we quickly aligned our operations with market conditions, by temporarily curtailing cultivation activities to adapt to current demand levels. We are pleased to have made progress towards the sale of Bridge Farm and the subsequent restructuring of our secured debt. These steps are critical in order to improve Sundial's financial health.\"\n\"The COVID-19 pandemic has brought many challenges over the past few months and our team has shown outstanding commitment and courage, working tirelessly despite these new demands,\" added George. \"We truly appreciate their efforts and their health and safety continues to be a priority for Sundial. As we move forward, we remain focused on achieving sustainable profitability ...