Slide 1: Disclaimer: Forward-looking statements
Disclaimer Forward-looking statements Certain statements contained in this presentation may constitute forward-looking information and statements. All statements in this presentation, other than statements of historical fact, that address events or developments concerning SNDL Inc. (“SNDL" or the "C
Slide 2: Corporate Presentation Third Quarter 2024
Corporate Presentation THIRD QUARTER 2024 November 2024 NASDAQ: SNDL
Slide 3: Q3 2024 Company Highlights
Q3 2024 Company Highlights CONTINUED REVENUE RECORD GROSS POSITIVE FREE CASH GROWTH IN CANNABIS MARGIN FLOW SNDL has reported The increase in gross margin SNDL showcased positive consistent revenue was largely driven by Free Cash Flow with improvement in Cannabis productivity initiatives in the cont
Slide 4: Q3 Financial Highlights
Q3 Financial Highlights Net Revenue $236.9MM $(0.7)MM (0.3)% Decrease YOY Decrease YOY SNDL delivered solid results and is well- positioned for the remaining of 2024 Gross Profit $63.0MM $14.4MM 30% and beyond Increase YOY Increase YOY The Company reported Revenue growth in both Gross Margin 26.6% 6
Slide 5: Consolidated Financial Results
Net Revenue Growth ($000s) Gross Profit Growth ($000s) Third Quarter Consolidated Financial Results 80,000 300,000 (0.3)% Decrease YOY 30% Increase YOY 2024 Financial 200,000 60,000 Performance 40,000 100,000 20,000 SNDL achieved significant expansion in 0 - gross profit and continued to see solid n
Slide 6: Net Revenue and Gross Profit Contribution by Segments
Net Revenue and Gross Profit Contribution by Segments First Quarter Financial Results Net Revenue ($Millions) Gross Profit ($Millions) +30% (0.3%) Li uor etail Cann etail Cann ps Corporate Li uor etail Cann etail Cann ps 5 NOTES All numbers are for the third quarter of 2024, ending September 30, 202
Slide 7: Adjusted Operating Income and Free Cash Flow Contribution by Segments
Adjusted Operating Income and Free Cash Flow Contribution Consolidated Financial Results by Segments Adj. Operating Income ($Millions) Free Cash Flow ($Millions) (6.7)% 9.2 (43)% (16.6) Li uor etail Cann etail Cann ps Investments Corporate arnings or ing Capital ther 6 NOTES All numbers are for the
Slide 8: Free Cash Flow Breakdown and Inventory Build
Strong Q3 2024 Free Cash Flow underpinned by inventory improvements, interests from loan repayments and higher OI First Quarter Financial Results Inventory Build by Retail FCF Breakdown ($Millions) Segments** ($Millions) 30 Q1'24 Q2'24 Q3'24 25 Net Income (4.7) (5.0) (19.3) 20 15 Non-Cash add backs
Slide 9: Liquor Retail Q3 2024 Results
Liquor Retail Q3 Net Revenue Gross Profit 2024 Liquor Retail $144.6MM $37.0MM Decrease of $7.2 million Decrease of $0.3 million Results 4.8% decrease year-over-year 0.8% Decrease year-over-year • Category decline impacted by lower store traffic • Private label sales increased 5.5% year-over-year • I
Slide 10: Cannabis Retail Q3 2024 Results
Cannabis Retail Q3 Net Revenue Gross Profit 2024 Cannabis Retail $81.1MM $20.7MM Increase of $5.6 million Increase of $0.7 million Results 7.4% increase year-over-year 3.3% increase year-over-year • Same store sales growth of 2.3% year-over-year • Additional Net revenue growth from new store opening
Slide 11: Cannabis Operations Q3 2024 Results
Cannabis Operations Q3 Net Revenue Gross Profit 2024 Cannabis Operations $25.0MM $5.3MM Increase of $4.1 million Increase of $14.0 million Results 19% increase year-over-year +161% increase year-over-year • Net revenue growth as a result of increasing provincial board and B2B distribution driven by
Slide 12: 2024 Strategic Priorities
2024 Strategic Priorities Strategic Priorities GROWTH PROFITABILITY PEOPLE Drive sustainable growth Achieve positive Free Create engagement & in our core segments Cash Flow alignment through performance culture & • Grow and convert • Accelerate productivity talent development store count programs •
Slide 13: Strategic Priorities: Growth Q3 2024 Highlights
Strategic Strategic Priorities Priorities +0.9pp M&A Cannabis Retail Q3 2024 Highlights Share gain Becomes market leader in Edibles with Indiva Through quality of execution and ramp up of 2023 Acquisition. Acquired all issued and outstanding store openings and BC expansion common shares of Nova Cann
Slide 14: Strategic Priorities: Profitability Q3 2024 Highlights
Strategic Strategic Priorities Priorities + $9M ~ $15M Free Cash Flow Productivity Savings Q3 2024 Highlights Continued inventory optimization, interest Segment optimization, including cultivation, received from loan repayments and focused procurement efficiencies, and mix management investments PRO
Slide 15: Overheads Restructuring Progress
Overheads Restructuring Progress Savings ($Million) Q3 Progress vs Plan $20M+ $18M • Overall Project execution Main Objective: • Q3 Savings $2M Reduce corporate $5M overheads and • Annualized Savings executed $10M $2M improve the • Percentage of savings executed ~50% Q3'24 H2'24 2025 2026+ efficienc
Slide 16: Strategic Priorities: People Q3 2024 Highlights
Strategic Strategic Priorities Community Priorities Critical Role Engagement Q3 2024 Highlights Review Continued activation around SNDL’s Mental and Investing in SNDL’s talent base by identifying Physical Wellbeing pillar, exploring initiatives with critical roles within the SNDL network to execute
Slide 17: Analyst Q&A
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