SNDL Reports Fourth Quarter and Full Year 2024 Financial and Operational Results
The Company reports Record Full Year Net Revenue, Gross Profit and Gross Margin, as well as positive Cash Flow and Free Cash Flow
CALGARY, AB, March 18, 2025 /PRNewswire/ - SNDL Inc. (NASDAQ:SNDL) ("SNDL" or the "Company") reported its financial and operational results for the full year and fourth quarter ended December 31, 2024. All financial information in this press release is reported in millions of Canadian dollars unless otherwise indicated.
SNDL has also posted a supplemental investor presentation and shareholder letter on its website, found at https://sndl.com.
The Company will hold a conference call and webcast presentation at 10:00 a.m. EDT (8:00 a.m. MDT) on Tuesday, March 18, 2025. The conference call details can be found below.
MANAGEMENT HIGHLIGHTS
Net revenue for the fourth quarter of 2024 was $257.7 million, and $920.4 million for the full year of 2024, representing growth of +3.7% and +1.3%, respectively, when compared to the same periods of the previous year. Both the quarter and the full year represent new records for the corporation, driven by strong growth from our combined Cannabis business of +16.5% in the fourth quarter and +10.6% over the full year.
Gross profit also reached new records, with $68.8 million in the fourth quarter of 2024, and $240.3 million for the full year, representing growth of +20.0% and +26.2%, respectively, when compared to the same periods of the previous year.
Gross margin (1) of 26.7% in the fourth quarter of 2024 and 26.1% for the full year are also new records, representing improvements of +3.6 and +5.2 percentage points, respectively, when compared to the same periods of the previous year.
Operating loss was $(76.1) million for the fourth quarter of 2024, driven by a negative valuation adjustment of the SunStream portfolio of $(65.7) million, a Spiritleaf intangible write-off of $(15.0) million, and restructuring charges of $(0.6) million. Excluding these exceptional items adding up to $(81.3) million, our underlying Operating Income would have been positive for the quarter. These exceptional items largely contributed to the full year reported Operating loss of $(103.8) million.
Cash flow was negative by $(44.6) million in the fourth quarter of 2024, driven by the acquisition of Nova's minority equity interest, as well as the repurchase of SNDL's common shares. Full-year cash flow was positive by $23.3 million.
Free cash flow (1) was positive both in the fourth quarter of 2024, at $11.6 million, and for the full year, at $8.9 million.
"We are pleased with the continued progress reflected in our fourth-quarter and full-year 2024 results, as we set new records and exceeded our commitment to achieving break-even free cash flow for the year. We have accomplished this while continuing to transform our business by investing in growth opportunities and strengthening our organizational capabilities. The SNDL team remains dedicated to raising the bar in 2025 and beyond," said Zach George, Chief Executive Officer of SNDL.
"During the fourth quarter of 2024 and the first months of 2025 up to this date, we took several strategic steps to enhance our foundation for long-term success and shareholder value:
Completed the privatization of Nova Cannabis Inc. through the acquisition of the remaining minority equity interest
Acquired business and assets of Indiva Inc. ("Indiva"), positioning SNDL as the largest manufacturer of infused edibles in Canada
Received approval from the Florida Department of Health for the transfer of the Parallel (Surterra Holdings, Inc.) license - an important milestone and prerequisite for completing the Parallel restructuring process
Repurchased 10,764,107 SNDL common shares for cancellation at an average price of US$1.81 per share
Acquired 4,350,000 common shares of High Tide Inc. ("High Tide"), equivalent to 5.4% ownership
In addition to these achievements, the Company has applied for listing of its common shares on the Canadian Securities Exchange ("CSE") and anticipate the CSE listing to go live in April 2025, providing our shareholders with increased flexibility and optionality.
The progress made during the last year in operational performance and financial discipline is undeniable, and we are encouraged by the many opportunities we still have ahead of us. Our strong balance sheet, including $218.4 million of unrestricted cash as of December 31, 2024, is not only a competitive differentiator but also gives us the flexibility to thoughtfully deploy capital into organic and inorganic investments with attractive returns. Our plan is to continue building strong fundamentals, as we expect to build momentum through 2025 with the goal of generating $100 million in positive annual free cash flow within the next three years.
We want to thank our employees for their dedication and passion in delivering the progress we made during the last year, as well as our shareholders for their continued trust and support," concluded Zach George.
TOTAL COMPANY HIGHLIGHTS
Three months ended December 31
Year ended December 31
($000s)
2024
2023
% Change
2024
2023
% Change
IFRS Financial Measures
Net revenue
257,679
248,450
3.7
%
920,448
909,006
1.3
%
Gross profit
68,799
57,336
20.0
%
240,331
190,415
26.2
%
Operating loss
(76,089)
(85,017)
10.5
%
(103,811)
(163,171)
36.4
%
Change in cash and cash equivalents
(44,617)
(6,942)
-543
%
23,318
(84,545)
128
%
Non-IFRS Financial Measures (1)
Gross margin
26.7
%
23.1
%
3.6
pp
26.1
%
20.9
%
5.2
pp
Adjusted operating loss
(60,472)
(27,094)
-123
%
(86,144)
(98,028)
12
%
Free cash flow
11,625
1,383
741
%
8,872
(60,883)
115
%
(1)
Gross Margin is a supplementary financial measure calculated by dividing Gross Profit by Net Revenue. Adjusted operating income (loss) and Free Cash Flow are specified financial measures that do not have a standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures reported by other companies. See "Non-IFRS Measures" section below for further information.
BUSINESS SEGMENT HIGHLIGHTS
SNDL's business is operated and reported in four segments: Liquor Retail, Cannabis Retail, Cannabis Operations and Investments. Corporate and Shared Service expenses, as well as the revenue elimination associated with the Cannabis Operations sales to the provincial boards that are expected to be subsequently repurchased by the Company's licensed retail subsidiaries for resale, are reported as "Corporate".
Three months ended December 31
Year ended December 31
($000s)
2024
2023
% Change
2024
2023
% Change
Net Revenue
Liquor Retail
154,080
159,493
-3.4
%
555,259
578,895
-4.1
%
Cannabis Retail
83,170
75,152
10.7
%
311,689
289,980
7.5
%
Cannabis Operations
37,092
26,044
42.4
%
109,470
87,071
25.7
%
Investments
—
—
0
%
—
—
0
%
Corporate
(16,663)
(12,239)
-36.1
%
(55,970)
(46,940)
-19.2
%
Total
257,679
248,450
3.7
%
920,448
909,006
1.3
%
Operating Income
Liquor Retail
12,325
10,120
21.8
%
34,781
24,655
41.1
%
Cannabis Retail
(8,997)
(849)
-959.7
%
(1,742)
4,840
-136.0
%
Cannabis Operations
4,391
(65,749)
106.7
%
2,663
(112,744)
102.4
%
Investments
(63,724)
(5,217)
-1121.5
%
(50,013)
11,746
-525.8
%
Corporate
(20,084)
(23,322)
13.9
%
(89,500)
(91,668)
2.4
%
Total
(76,089)
(85,017)
-10.5
%
(103,811)
(163,171)
400.2
%
Adjusted Operating Income
Liquor Retail
12,325
10,120
21.8
%
34,781
24,655
41.1
%
Cannabis Retail
6,003
(849)
807.1
%
13,258
4,840
173.9
%
Cannabis Operations
4,439
(7,715)
157.5
%
3,091
(52,728)
105.9
%
Investments
(63,724)
(5,217)
-1121.5
%
(50,013)
11,746
-525.8
%
Corporate
(19,515)
(23,433)
16.7
%
(87,261)
(86,541)
-0.8
%
Total
(60,472)
(27,094)
-1355.1
%
(86,144)
(98,028)
133.4
%
Liquor Retail
SNDL is Canada's largest private sector liquor retailer, operating at March 17, 2025 in 165 locations, predominantly in Alberta, under its three retail banners: "Wine and Beyond" (13), "Liquor Depot" (19), and "Ace Liquor" (133).
Three months ended December 31
Year ended December 31
($000s)
2024
2023
% Change
2024
2023
% Change
Net Revenue
154,080
159,493
-3.4
%
555,259
578,895
-4.1
%
Gross Profit
38,236
38,396
-0.4
%
139,706
137,286
1.8
%
Gross margin
24.8
%
24.1
%
0.7
pp
25.2
%
23.7
%
1.4
pp
Operating Income
12,325
10,120
21.8
%
34,781
24,655
41.1
%
Adjusted Operating Income
12,325
10,120
21.8
%
34,781
24,655
41.1
%
Net revenue for Liquor ...
