Sndl Inc. · NASDAQ:SNDL
Sndl — Q1 2024 Earnings Presentation
15 slides from Sndl's earnings presentation, May 9, 2024
Slide 1: Corporate Presentation First Quarter 2024
Corporate Presentation FIRST QUARTER 2024 May 2024 NASDAQ: SNDL
Slide 2: Q1 2024 Company Highlights
Q1 2024 Company Highlights CONTINUED REVENUE RECORD GROSS IMPROVED OPERATING GROWTH MARGIN INCOME SNDL has reported The increase in gross margin SNDL showcased improved improved revenue in eight was largely driven by operating income across all of the last nine quarters, productivity initiatives in
Slide 3: Q1 Financial Highlights
Q1 Financial Highlights Net Revenue $197.8MM $6.8MM Increase YOY 4% Increase YOY SNDL delivered strong results and is well-positioned for Gross Profit $50.4MM $17.9MM 55% 2024 and beyond. Increase YOY Increase YOY The Company reported increases Gross Margin 25% 8.5pp across all key financial metrics
Slide 4: Consolidated Financial Results
Net Revenue Growth ($000s) Gross Profit Growth ($000s) First Quarter Consolidated Financial Results 80,000 300,000 4% Increase YOY 55% Increase YOY 2024 Financial 200,000 60,000 Performance 40,000 100,000 20,000 SNDL achieved significant expansion 0 - in gross profit and continued to see 2021 2022 2
Slide 5: First Quarter Financial Results
Net Revenue and Gross Profit Contribution by Segments First Quarter Financial Results +4% +55% 5 NOTES 1. All numbers are for the first quarter of 2024, ending March 31, 2024. Cannabis Operations include the operations of Valens for the period of January 18, 2023, to December 31, 2023.
Slide 6: Consolidated Financial Results
Adjusted Operating Income and Free Cash Flow Consolidated Financial Results Contribution by Segments (6.4) (4.5) +85% +89% 6 NOTES 1. All numbers are for the first quarter of 2024, ending March 31, 2024. Cannabis Operations include the operations of Valens for the period of January 18, 2023, to Dece
Slide 7: First Quarter Financial Results: Free Cash Flow
Solid Q1 2024 Free Cash Flow performance despite the First Quarter Financial Results impact of seasonality FCF Breakdown Quarterly Net Revenue** Inventory Build by Retail ($Millions) 270 ($Millions) Segments** ($Millions) 30 250 25 Net Income (4.7)* 20 230 15 Non-Cash add backs 11.1 10 210 5 Invento
Slide 8: Liquor Retail
Liquor Retail Q1 Net Revenue Gross Profit 2024 Liquor Retail $116.1MM $28.8MM Increase of $0.2 million Increase of $2.5 million Results 0.1% increase year-over-year 10% increase year-over-year • Stable growth compared to the previous year • Private label sales increased 29% year-over-year • Improvem
Slide 9: Cannabis Retail
Cannabis Retail Q1 Net Revenue Gross Profit 2024 Cannabis Retail $71.3MM $18.4MM Increase of $3.9 million Increase of $2.6 million Results 6% increase year-over-year 17% increase year-over-year • Net revenue increase was driven by productivity improvements and new store openings through December 202
Slide 10: Cannabis Operations
Cannabis Operations Q1 Net Revenue Record Gross Profit 2024 Cannabis Operations $22.4MM $3.2MM Increase of $3.3 million Increase of $12.7 million Results 17% increase year-over-year 134% increase year-over-year • Net revenue was a result of increasing B2B distribution and a continued focus on consum
Slide 11: 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 12: Strategic Priorities: Growth
Strategic Strategic Priorities Priorities +2New Stores Q1 2024 Highlights BC Store Expansion Including a new Spiritleaf location in the coveted Creates an opportunity to expand the Value Buds community of Whistler, BC, and one Wine and banner into British Columbia Beyond location in Airdrie, Alberta
Slide 13: Strategic Priorities: Profitability
Strategic Strategic Priorities Priorities ~ $10M ~ $4M Productivity Savings Data Licensing Revenue Q1 2024 Highlights Due to segment optimization, procurement Revenue combined from proprietary data efficiencies, and inventory management licensing program from both Liquor Retail and Cannabis Retail P
Slide 14: Strategic Priorities: People
Strategic Community Strategic Priorities Engagement Priorities Framework Employee Investment Q1 2024 Highlights Launched to foster community outreach and Investment in retention and succession planning engage employees. SNDL’s focus pillar, as voted to ensure meaningful growth for SNDL employees on
Slide 15: Analyst Q&A
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