Canadian cannabis company SNDL Inc. (NASDAQ:SNDL) reported Monday its financial results for the second quarter ended June 30, 2023, disclosing revenue of CA$244.5 million ($182 million), up by 9.3% from CA$223.7 million in the same period of 2022.
"Our incredible two-year journey from less than $10 million of net revenue and negative gross margin in Q2 2021 to our current trajectory of reaching an expected $1 billion in annual revenue and continued gross margin growth in 2023 is a testament to our team's commitment to becoming a leader in Canadian regulated products," stated Zach George, CEO of SNDL. "We have taken decisive steps to simplify operations throughout our business segments with a sharp focus on the goal of reaching profitability in 2024. In Liquor Retail, we are capitalizing on margin-accretive product opportunities and modest expansion. In Cannabis Retail, our data licensing program is driving improved profitability and supplier relationships, and we look to enhance consumer engagement through new loyalty capabilities. In our Cannabis Operations, we have taken aggressive cost-cutting measures, streamlined manufacturing operations, and reduced reliance on high-cost cultivation."
Q2 Financial Highlights
Cannabis retail net revenue amounted to CA$71.9 million, up by 13.2% from the second quarter of 2022.
Net loss was CA$33.2 million, which compares to a net loss of CA$74.0 million in the corresponding period of 2022.
Adjusted EBITDA was a gain of CA$2.2 million, versus an adjusted EBITDA loss of CA$25.9 million in the same quarter of the prior year.
SNDL currently has five credit exposures in the SunStream portfolio following the monetization of a credit exposure in July 2023. The current portfolio includes one credit under a court-supervised receivership process and another in active restructuring negotiations.
As of June 20, the company has CA$754 million of unrestricted cash, marketable securities and investments, and no outstanding debt.
Price Action
SNDL shares were trading 5.03% higher at $1.67 per share during Monday's pre-market session.
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