Company Overview - SNDL Inc. is one of the largest vertically integrated cannabis companies in Canada and the largest private-sector liquor and cannabis retailer [2] - The company operates various retail banners including Ace Liquor, Wine and Beyond, Liquor Depot, Value Buds, Spiritleaf, and Superette [2] - SNDL's consumer-facing cannabis brands include Top Leaf, Contraband, Palmetto, Bon Jak, La Plogue, Versus, Value Buds, Vacay, Pearls by Grön, No Future, and Bhang Chocolate [2] Financial Results Announcement - SNDL will release its second quarter 2025 financial results for the period ended June 30, 2025, before market opens on July 31, 2025 [1] - A conference call and webcast will be hosted by SNDL at 10:00 a.m. EDT (8:00 a.m. MDT) on July 31, 2025, following the release of the financial results [1]

Industry Overview - The cannabis industry is experiencing a turbulent period characterized by intense pullbacks and ongoing federal uncertainty, but solid long-term trends may drive major returns for patient investors [1] - Ancillary industries such as cannabis real estate, biotech, and consumer wellness are expected to benefit from the broader ecosystem expansion, making marijuana stock investing appealing as it offers exposure to an emerging, recession-resistant industry with high growth potential [2] Investment Opportunities - Multistate operators (MSOs), cannabis ETFs, REITs, and ancillary marijuana companies are positioned to see significant upside despite the volatility expected in 2025 [3] - The long-term investment case for marijuana stocks remains strong, and investors are encouraged to plan and strategize while weighing risks and rewards [3] Company Highlights - **Village Farms International, Inc. (NASDAQ: VFF)**: Recently regained compliance with Nasdaq's minimum closing bid price requirement of US$1.00 per share [6] - **SNDL Inc. (NASDAQ: SNDL)**: Reported Q1 2025 earnings with net revenue of US$204.914 million, a 3.6% increase from 2024, and gross profit of US$56.641 million, a 12.4% increase [11] - **High Tide Inc. (NASDAQ: HITI)**: Expanded its retail presence with the opening of two new Canna Cabana locations, bringing its total to 202 locations across Canada [13]

Group 1 - 1CM Inc. has received court approval for its arrangement with SNDL Inc., which includes the acquisition of 32 cannabis retail stores operating under the Cost Cannabis and T Cannabis brands in Ontario, Alberta, and Saskatchewan [1] - The completion of the arrangement is subject to certain closing conditions, including regulatory approvals, and is expected to be finalized in the third quarter of 2025 [2] - 1CM Inc. is a retailer of cannabis and liquor in Canada, known for developing cash-flow positive locations, and plans to continue expanding through organic growth and future mergers and acquisitions after the arrangement [3]

Industry Overview - The cannabis sector has shifted from a short-term investment focus to a promising long-term investment opportunity, driven by the success of the legal market [1][2] - Despite the volatility and uncertainty in the market, the growth of the legal cannabis industry provides optimism for future investments [2][3] Key Companies to Watch - **Tilray Brands, Inc.** engages in the research, cultivation, processing, and distribution of medical cannabis products across multiple regions including Canada, the U.S., and Europe [4][6] - **SNDL Inc.** focuses on the production, distribution, and sale of cannabis products for the adult-use market, operating through various segments including Cannabis Retail and Investments [8][10] - **Cronos Group Inc.** is involved in the cultivation, production, distribution, and marketing of cannabis products internationally, with a focus on cannabinoid products [12][13] Financial Performance - **Tilray Brands, Inc.** reported a net revenue of $204.9 million for Q1 2025, reflecting a growth rate of +3.6% and a gross profit of $56.6 million, marking a growth of +12.4% with a gross margin of 27.6% [10][12] - The operating loss for Tilray in Q1 2025 was $(12.1) million, indicating challenges despite revenue growth [12]

Core Insights - High Tide (NASDAQ: HITI) is highlighted as a significant stock holding, with extensive coverage provided by the author [1] - The author emphasizes the importance of personal investment strategies developed through deep research and independent thought [1] Investment Strategy - The analysis focuses on identifying opportunities that exhibit asymmetry, which can lead to potential high returns [1] - The author seeks to find cost-effective hedges that can protect investment portfolios [1] - Low correlation stocks are targeted for portfolio diversification while also offering significant growth potential [1] - The strategy includes avoiding stocks that do not present an attractive risk-reward profile [1]

Financial Data and Key Metrics Changes - Net revenue for Q1 2025 reached CAD 205 million, a 3.6% increase compared to Q1 2024, driven by a combined cannabis business growth of 16.8% [12][16] - Gross profit increased by CAD 6.2 million or 12.4% year over year, resulting in a gross margin improvement to 27.6% [12][13] - Free cash flow was marginally negative at CAD -1.1 million, representing a CAD 5.3 million improvement compared to the same period in 2024 [13][15] Business Line Data and Key Metrics Changes - Liquor Retail segment recorded net revenue of CAD 109.5 million, reflecting a 5.7% decline year over year, impacted by one less day in February and Easter timing [16][17] - Cannabis Retail achieved net revenue of CAD 77.5 million, an 8.7% increase compared to the prior year, driven by a 5.2% increase in same-store sales [17][18] - Cannabis Operations segment reported net revenue of CAD 34.3 million, a 53% growth compared to the prior year, including CAD 10.2 million from the Indiva acquisition [19][20] Market Data and Key Metrics Changes - The cannabis segments continued to show strong momentum, achieving steady year-on-year revenue gains for the thirteenth consecutive quarter [4][5] - The company gained 0.3 percentage points of year-on-year market share in the cannabis retail segment [21][22] Company Strategy and Development Direction - The company is focused on three strategic pillars: growth, profitability, and people, with a commitment to expanding its cannabis retail footprint [21][25] - A formal strategic review has been initiated to evaluate the company's exposure to U.S. multistate licensed cannabis enterprises and current exchange listing status [6][9] - The acquisition of One Centimeters is expected to close by the end of Q3 2025, enhancing the company's retail presence [22] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding potential excise tax reforms in Canada but does not expect material changes in the near term [46][47] - The company is not experiencing material disruptions from trade disputes, with only 5% of liquor sales coming from U.S. products [49][50] Other Important Information - The restructuring program is on track, delivering CAD 4 million in savings during Q1, corresponding to an annualized run rate of CAD 17 million [24][25] - The company is committed to investing in employee development and enhancing engagement through various initiatives [25][26] Q&A Session Summary Question: Strategy for entering the U.S. market - Management clarified that no decision has been made regarding entering the U.S. market, but existing capital exposure could facilitate entry [31][32] Question: M&A outlook for cannabis retail - Management confirmed active evaluation of both organic and inorganic growth opportunities in the Canadian retail network [35][36] Question: Rollout of loyalty program in retail - The loyalty program aims to enhance communication with consumers and provide value, with potential expansion across different product lines [40][41] Question: Insights on regulatory recommendations post-elections - Management expressed cautious optimism about regulatory reforms but does not expect significant changes in excise tax rates soon [46][47]

Financial Data and Key Metrics Changes - Net revenue for Q1 2025 reached CAD 205 million, a 3.6% increase compared to Q1 2024, driven by a combined cannabis business growth of 16.8% [11][12] - Gross profit increased by CAD 6.2 million or 12.4% year over year, resulting in a gross margin improvement to 27.6% [11][12] - Free cash flow was marginally negative at CAD -1.1 million, representing a CAD 5.3 million improvement compared to the same period in 2024 [12][15] Business Line Data and Key Metrics Changes - Liquor Retail segment recorded net revenue of CAD 109.5 million, reflecting a 5.7% decline year over year [15][16] - Cannabis Retail achieved net revenue of CAD 77.5 million, an 8.7% increase compared to the prior year, driven by a 5.2% increase in same-store sales [16][17] - Cannabis Operations segment reported net revenue of CAD 34.3 million, a 53% growth year over year, including CAD 10.2 million from the Indiva acquisition [18][19] Market Data and Key Metrics Changes - The cannabis segments continued to show strong momentum, achieving steady year-on-year revenue gains for the thirteenth consecutive quarter [4][5] - The company gained 0.3 percentage points of market share year on year in the cannabis retail segment [20][21] Company Strategy and Development Direction - The company is focused on three strategic pillars: growth, profitability, and people, with an emphasis on expanding its cannabis retail footprint [20][24] - A formal strategic review has been initiated to evaluate the company's exposure to U.S. multistate licensed cannabis enterprises and its current exchange listing status [6][8] - The acquisition of One Centimeters is expected to close by the end of Q3 2025, which will enhance the company's retail presence [21] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding potential regulatory reforms in Canada, particularly concerning excise tax rates [46][47] - The company is not expecting material changes in the near term but is seeing positive regulatory developments [47][49] - Management emphasized the importance of operational improvements and efficiency while awaiting further growth opportunities [36][37] Other Important Information - The company achieved CAD 4 million in overhead savings during Q1 2025, driven by a restructuring program [22][23] - The loyalty program is expected to enhance customer engagement and communication, providing value to loyal consumers [40][41] Q&A Session Summary Question: Strategy for entering the U.S. market - Management clarified that no decision has been made regarding entering the U.S. market, but existing capital exposure could facilitate entry [30][31][34] Question: M&A outlook for cannabis retail - Management confirmed active evaluation of both organic and inorganic growth opportunities in the Canadian retail network [35][36] Question: Rollout of the loyalty program - Management expressed excitement about the loyalty program's potential to enhance consumer communication and value [39][40] Question: Insights on regulatory recommendations post-elections - Management indicated cautious optimism regarding excise tax reform but does not expect significant changes in the near term [46][47][49]

分组1 - SNDL Inc. reported a quarterly loss of $0.04 per share, better than the Zacks Consensus Estimate of a loss of $0.06, but worse than a loss of $0.01 per share a year ago, indicating an earnings surprise of 33.33% [1] - The company posted revenues of $142.74 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 4.79% and down from $146.69 million year-over-year [2] - SNDL Inc. shares have declined approximately 16.8% since the beginning of the year, compared to a decline of 5.3% for the S&P 500 [3] 分组2 - The earnings outlook for SNDL Inc. is currently unfavorable, leading to a Zacks Rank of 5 (Strong Sell), suggesting expected underperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is -$0.04 on revenues of $169.97 million, and for the current fiscal year, it is -$0.15 on revenues of $685.74 million [7] - The Medical - Products industry, to which SNDL Inc. belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

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 "Company") that SNDL expects to occur are "forward-looking information and statements". Forward-looking information and statements are often, but not always, identified by the use of words such as "seek", "anticipa ...

Core Insights - SNDL Inc. reported record gross margin and positive cash flow for Q1 2025, driven by robust growth in its cannabis segments and strategic initiatives aimed at long-term value creation [4][6][9] - The company is undergoing a strategic review to evaluate its exposure to U.S. cannabis enterprises and its current exchange listing status, aiming to maximize shareholder value [8][27][28] Financial Performance - Net revenue for Q1 2025 was CAD 204.9 million, a 3.6% increase from CAD 197.8 million in Q1 2024, primarily due to a 16.8% growth in the combined cannabis business [6][10] - Gross profit reached CAD 56.6 million, reflecting a 12.4% increase year-over-year, with a gross margin of 27.6%, up 2.2 percentage points from the previous year [6][11] - Operating loss for the quarter was CAD 12.1 million, influenced by a CAD 4.5 million loss from the SunStream portfolio and CAD 3.0 million in restructuring charges [6][10] - Positive cash flow of CAD 2.5 million was reported, aided by the collection of CAD 28 million from Delta 9 Cannabis [6][10] Business Segments - The Liquor Retail segment generated CAD 109.5 million in revenue, a decrease of 5.7% from the previous year, while the Cannabis Retail segment saw an 8.7% increase in revenue to CAD 77.5 million [12][13][18] - Cannabis Operations reported a significant revenue increase of 53.2%, totaling CAD 34.3 million, with gross profit rising by 184.7% [12][22][25] Strategic Initiatives - The company announced the acquisition of 32 cannabis retail stores for CAD 32.2 million and launched the Rise Rewards loyalty program to enhance customer engagement [5][6] - SNDL's Board approved an amendment to its share repurchase program, allowing for the repurchase of up to 10% of the public float [6][9] Investment and Capital Structure - As of March 31, 2025, SNDL held CAD 220.9 million in unrestricted cash, providing flexibility for future investments [9][25] - The company repurchased 5.8 million common shares at an average price of USD 1.79 per share during Q1 2025 [7][25]