Condensed Consolidated Interim Financial Statements [Condensed Consolidated Interim Statements of Financial Position](index=2&type=section&id=SNDL%20Inc.%20Condensed%20Consolidated%20Interim%20Statements%20of%20Financial%20Position) As of March 31, 2025, SNDL Inc. reported total assets of $1.31 billion, a slight decrease from $1.35 billion at the end of 2024, with total liabilities decreasing to $212.1 million from $215.9 million, resulting in a decline in total shareholders' equity to $1.10 billion from $1.13 billion primarily due to net loss and share repurchases Consolidated Statement of Financial Position Highlights (in thousands of CAD) | As at | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | 420,754 | 461,840 | | **Total Non-Current Assets** | 891,519 | 887,402 | | **Total Assets** | **1,312,273** | **1,349,242** | | **Total Current Liabilities** | 91,155 | 90,557 | | **Total Non-Current Liabilities** | 120,919 | 125,329 | | **Total Liabilities** | **212,074** | **215,886** | | **Total Shareholders' Equity** | **1,100,199** | **1,133,356** | | **Total Liabilities and Shareholders' Equity** | **1,312,273** | **1,349,242** | [Condensed Consolidated Interim Statements of Loss and Comprehensive Loss](index=3&type=section&id=SNDL%20Inc.%20Condensed%20Consolidated%20Interim%20Statements%20of%20Loss%20and%20Comprehensive%20Loss) For the three months ended March 31, 2025, SNDL reported a net loss of $14.7 million on net revenue of $204.9 million, compared to a net loss of $4.7 million on net revenue of $197.8 million in the same period of 2024, driven by a higher operating loss and a share of loss from equity-accounted investees Statement of Loss Highlights (in thousands of CAD, except per share amounts) | For the three months ended March 31 | 2025 | 2024 | | :--- | :--- | :--- | | **Net Revenue** | 204,914 | 197,750 | | **Gross Profit** | 56,641 | 50,400 | | **Operating Loss** | (12,053) | (4,377) | | **Net Loss** | (14,707) | (4,652) | | **Comprehensive (Loss) Income** | (20,285) | 5,382 | | **Net Loss Per Share (Basic and Diluted)** | $(0.06) | $(0.01) | [Condensed Consolidated Interim Statements of Changes in Shareholders' Equity](index=4&type=section&id=SNDL%20Inc.%20Condensed%20Consolidated%20Interim%20Statements%20of%20Changes%20in%20Shareholders%27%20Equity) Shareholders' equity decreased from $1.13 billion at the end of 2024 to $1.10 billion at March 31, 2025, primarily due to a net loss of $14.7 million, share repurchases of $15.3 million, and other comprehensive loss of $5.6 million, partially offset by share-based compensation - Key changes in shareholders' equity for the three months ended March 31, 2025 include a net loss of **$14.7 million** and share repurchases totaling **$15.3 million**[8](index=8&type=chunk) Changes in Shareholders' Equity (in thousands of CAD) | Description | Amount | | :--- | :--- | | **Balance at December 31, 2024** | **1,133,356** | | Net loss | (14,707) | | Other comprehensive loss | (5,578) | | Share repurchases | (15,331) | | Share-based compensation | 2,459 | | **Balance at March 31, 2025** | **1,100,199** | [Condensed Consolidated Interim Statements of Cash Flows](index=5&type=section&id=SNDL%20Inc.%20Condensed%20Consolidated%20Interim%20Statements%20of%20Cash%20Flows) For the first quarter of 2025, the company generated $7.8 million in cash from operating activities, a significant improvement from $3.3 million in the prior-year period, with cash from investing activities positive at $17.2 million, and financing activities using $22.5 million, leading to an overall increase in cash and cash equivalents by $2.5 million to $220.9 million Cash Flow Summary (in thousands of CAD) | For the three months ended March 31 | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | 7,788 | 3,301 | | **Net cash provided by (used in) investing activities** | 17,172 | (1,676) | | **Net cash used in financing activities** | (22,452) | (7,712) | | **Change in cash and cash equivalents** | 2,508 | (6,087) | | **Cash and cash equivalents, end of period** | 220,867 | 188,954 | - The primary use of cash in financing activities was the repurchase of common shares, amounting to **$15.0 million**[10](index=10&type=chunk) Notes to the Condensed Consolidated Interim Financial Statements [Note 1: Description of Business](index=6&type=section&id=1.%20DESCRIPTION%20OF%20BUSINESS) SNDL Inc. operates primarily in Canada with principal activities in liquor retail, cannabis retail, cannabis production and distribution, and capital deployment into investment opportunities, while monitoring potential impacts from new U.S. tariffs without significant financial impact in Q1 2025 - The company's main business activities include retailing alcoholic beverages, operating cannabis stores, producing cannabis products, and making strategic investments[14](index=14&type=chunk) - SNDL operates solely in Canada but pursues indirect U.S. investment opportunities through its SunStream joint venture[15](index=15&type=chunk) - The company is monitoring the impact of new U.S. tariffs on its input costs and foreign exchange rates, but noted no significant impact in Q1 2025[18](index=18&type=chunk)[19](index=19&type=chunk) [Note 3: Business Acquisitions](index=7&type=section&id=3.%20BUSINESS%20ACQUISITIONS) On November 4, 2024, SNDL closed its acquisition of the Indiva Group for approximately $21.1 million, primarily through a credit bid extinguishing debt, which resulted in a provisional bargain purchase gain of $5.46 million - SNDL acquired Indiva Group on November 4, 2024, for consideration of **$21.1 million**, consisting of **$20.7 million** in debt extinguishment and **$0.4 million** in cash[25](index=25&type=chunk) - The acquisition resulted in a bargain purchase gain of **$5.46 million**, which was recorded in the consolidated statements of loss for the year ended December 31, 2024[27](index=27&type=chunk)[28](index=28&type=chunk) [Note 4: Segment Information](index=8&type=section&id=4.%20SEGMENT%20INFORMATION) For Q1 2025, SNDL's operations are divided into four segments: Liquor Retail, Cannabis Retail, Cannabis Operations, and Investments, with Liquor Retail being the largest contributor to net revenue, while Cannabis Retail generated the highest gross profit and operating income, and the Corporate segment reported a significant operating loss Segment Performance for Three Months Ended March 31, 2025 (in thousands of CAD) | Segment | Net Revenue | Gross Profit | Operating Income (Loss) | | :--- | :--- | :--- | :--- | | **Liquor Retail** | 109,472 | 27,803 | 1,980 | | **Cannabis Retail** | 77,540 | 19,627 | 5,162 | | **Cannabis Operations** | 34,319 | 9,211 | (486) | | **Investments** | — | — | (1,601) | | **Corporate** | — | — | (17,108) | | **Total (after eliminations)** | **204,914** | **56,641** | **(12,053)** | - The company has non-current assets related to credit investments in the United States totaling **$407.6 million** as of March 31, 2025, held through its equity-accounted investees[36](index=36&type=chunk) [Note 5: Biological Assets](index=9&type=section&id=5.%20BIOLOGICAL%20ASSETS) The fair value of biological assets increased to $3.0 million at March 31, 2025, from $1.2 million at year-end 2024, with 6,736 kilograms of dry cannabis harvested during the quarter and an estimated future yield of 13,059 kilograms Change in Biological Assets (in thousands of CAD) | As at | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Balance, beginning of period** | 1,187 | 429 | | **Balance, end of period** | 3,049 | 1,187 | - The company harvested **6,736 kg** of dry cannabis in Q1 2025, compared to **1,145 kg** in Q1 2024[39](index=39&type=chunk) - As of March 31, 2025, it is estimated that the company's biological assets will yield approximately **13,059 kilograms** of dry cannabis, up from an estimate of **4,500 kilograms** at the end of 2024[39](index=39&type=chunk) [Note 7: Assets Held for Sale](index=10&type=section&id=7.%20ASSETS%20HELD%20FOR%20SALE) The company's assets held for sale decreased significantly from $19.1 million to $0.3 million due to the reclassification of the Olds, Alberta facility back to property, plant, and equipment, as it no longer met the criteria for assets held for sale - The Olds facility, previously valued at **$18.8 million** and classified as held for sale, was reclassified back to property, plant and equipment during Q1 2025[43](index=43&type=chunk) [Note 9: Property, Plant and Equipment](index=11&type=section&id=9.%20PROPERTY%2C%20PLANT%20AND%20EQUIPMENT) The net book value of property, plant, and equipment increased to $158.1 million from $145.8 million, largely due to the reclassification of the Olds facility, while the company recorded a $2.7 million impairment on certain production facilities and equipment related to the consolidation of its edible facilities - The net book value of PP&E increased to **$158.1 million**, primarily due to an **$18.8 million** transfer from assets held for sale[46](index=46&type=chunk) - An impairment charge of **$2.7 million** was recorded in the cannabis operations segment due to the consolidation of edible facilities[47](index=47&type=chunk) - The company recorded a net impairment reversal of **$0.3 million** on retail property, plant and equipment related to an improved performance of a previously impaired cannabis retail store[48](index=48&type=chunk)[50](index=50&type=chunk) [Note 12: Investments](index=13&type=section&id=12.%20INVESTMENTS) Total investments decreased from $36.0 million to $12.7 million, mainly due to the repayment of a $28.1 million loan to Delta-9 Cannabis Inc., while the company acquired $9.0 million of new investments in listed common shares designated as Fair Value Through Other Comprehensive Income (FVOCI) - The company received full payment for its **$28.1 million** loan to Delta-9 Cannabis Inc. during Q1 2025[55](index=55&type=chunk)[56](index=56&type=chunk) - SNDL acquired **$9.0 million** of investments in listed common shares, which were marked to market at **$11.8 million**, with a corresponding **$5.2 million** unrealized loss recognized in other comprehensive income[57](index=57&type=chunk) [Note 13: Equity-Accounted Investees](index=13&type=section&id=13.%20EQUITY-ACCOUNTED%20INVESTEES) The carrying amount of the company's interest in its joint venture, SunStream, decreased to $407.6 million from $413.1 million, as SNDL recorded its 50% share of SunStream's net loss, amounting to $4.5 million, a significant reversal from a $9.1 million profit share in Q1 2024 - SunStream is a **50/50** joint venture that invests in the U.S. cannabis sector through secured debt and other instruments[58](index=58&type=chunk)[60](index=60&type=chunk) Change in Carrying Amount of SunStream JV (in thousands of CAD) | Description | Carrying Amount | | :--- | :--- | | **Balance at December 31, 2024** | **413,124** | | Share of net loss | (4,457) | | Share of other comprehensive loss | (348) | | Distributions | (719) | | **Balance at March 31, 2025** | **407,600** | [Note 15: Share Capital and Warrants](index=14&type=section&id=15.%20SHARE%20CAPITAL%20AND%20WARRANTS) During Q1 2025, SNDL repurchased and cancelled **5.8 million** common shares for a total cost of **$15.0 million**, reducing the number of issued and outstanding shares to **257.3 million** and decreasing the carrying amount of share capital from **$2.35 billion** to **$2.30 billion** - The company purchased and cancelled **5.8 million** common shares at a weighted average price of **$2.57** per share[65](index=65&type=chunk) Change in Issued and Outstanding Shares | Description | Number of Shares | | :--- | :--- | | **Balance, Dec 31, 2024** | 263,021,847 | | Share repurchases | (5,761,735) | | Employee awards exercised | 33,748 | | **Balance, Mar 31, 2025** | **257,293,860** | [Note 16: Share-Based Compensation](index=15&type=section&id=16.%20SHARE-BASED%20COMPENSATION) Total share-based compensation expense for Q1 2025 was $1.4 million, a significant decrease from $4.8 million in Q1 2024, comprised of $2.5 million for equity-settled RSUs and a recovery of $1.1 million for cash-settled DSUs, with 4.0 million new RSUs granted during the quarter Share-Based Compensation Expense (in thousands of CAD) | For the three months ended March 31 | 2025 | 2024 | | :--- | :--- | :--- | | Equity-settled expense (RSUs) | 2,459 | 2,441 | | Cash-settled (recovery) expense (DSUs) | (1,071) | 2,402 | | **Total** | **1,388** | **4,843** | - The number of outstanding Restricted Share Units (RSUs) increased from **9.4 million** to **13.3 million**, primarily due to **4.0 million** new grants[73](index=73&type=chunk) - The liability for cash-settled Deferred Share Units (DSUs) decreased to **$6.0 million** from **$7.1 million** at year-end 2024[75](index=75&type=chunk) [Note 17: Net Revenue](index=18&type=section&id=17.%20NET%20REVENUE) Total net revenue for Q1 2025 was $204.9 million, up from $197.8 million in Q1 2024, driven by growth in Cannabis Retail revenue to $77.5 million and Cannabis Operations revenue to $30.1 million, despite a slight decline in Liquor Retail revenue to $109.5 million Net Revenue by Segment (in thousands of CAD) | For the three months ended March 31 | 2025 | 2024 | | :--- | :--- | :--- | | **Liquor retail revenue** | 109,472 | 116,054 | | **Cannabis retail revenue** | 77,540 | 71,306 | | **Cannabis operations revenue (net)** | 30,125 | 20,598 | | **Gross revenue** | 217,137 | 207,958 | | Excise taxes | (12,223) | (10,208) | | **Net revenue** | **204,914** | **197,750** | [Note 24: Subsequent Events](index=21&type=section&id=24.%20SUBSEQUENT%20EVENTS) On April 9, 2025, SNDL announced an agreement to acquire **32 cannabis retail stores** from 1CM Inc. for **$32.2 million** in cash, with the transaction expected to close by the end of Q3 2025, pending customary approvals - SNDL entered into an agreement to acquire **32 cannabis retail stores** from 1CM Inc. for **$32.2 million** in cash[92](index=92&type=chunk)[93](index=93&type=chunk) - The acquisition includes **27 stores** in Ontario, **3** in Saskatchewan, and **2** in Alberta[93](index=93&type=chunk) - The transaction is structured as an arrangement and is expected to close by the end of Q3 2025, subject to shareholder and regulatory approvals[94](index=94&type=chunk)

Group 1 - SNDL Inc. will release its first quarter 2025 financial results on May 1, 2025, before market opens [1] - A conference call and webcast will be held on May 1, 2025, at 10:00 a.m. EDT [1] Group 2 - 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, Grasslands, Vacay, Pearls by Grön, No Future, and Bhang Chocolate [2] - The company's investment portfolio aims to deploy strategic capital through direct and indirect investments and partnerships in the North American cannabis industry [2]

Core Points - SNDL Inc. has commenced trading on the Canadian Securities Exchange (CSE) under the symbol "SNDL" effective April 11, 2025, providing the company with additional operational flexibility and opportunities for shareholders to transact in Canadian dollars [1][2] - The CSE listing enhances SNDL's structural flexibility and aligns with its long-term vision, allowing the company to pursue growth opportunities with greater agility [2] - SNDL is one of the largest vertically integrated cannabis companies in Canada and the largest private-sector liquor and cannabis retailer, with a diverse portfolio of retail brands and consumer-facing cannabis products [3]

Core Viewpoint - SNDL Inc. has entered into an agreement to acquire 32 cannabis retail stores from 1CM Inc. for a total consideration of $32.2 million in cash, enhancing SNDL's retail presence in Canada [1][2][3]. Group 1: Transaction Details - The acquisition includes 2 stores in Alberta, 3 in Saskatchewan, and 27 in Ontario, with the 1CM Stores generating annual revenue of $53 million for the fiscal year ending August 31, 2024 [2]. - Following the acquisition, SNDL's total owned and franchised cannabis retail store count will increase to 219 [2]. - The transaction is expected to close by the end of the third quarter of 2025, pending customary closing conditions, including court and regulatory approvals [9]. Group 2: Management Statements - SNDL's CEO expressed excitement about expanding the retail network and increasing exposure to a broad consumer base in key Canadian markets [3]. - 1CM's CEO highlighted the opportunity to unlock shareholder value through this transaction and expressed readiness to assist SNDL during the transition [3]. Group 3: Board and Shareholder Support - The 1CM Board unanimously approved the agreement, deeming it in the best interests of 1CM and fair to its shareholders [4]. - Directors and senior officers of 1CM holding shares have committed to vote in favor of the transaction, representing approximately 12.9% of the issued and outstanding shares [6]. Group 4: Financial Considerations - Valuracion Appraisal & Consulting Services Ltd. provided an opinion that the purchase price is fair from a financial perspective for 1CM shareholders [5]. - 1CM anticipates returning a substantial portion of the sale proceeds to shareholders and using the remainder for developing new locations and general corporate purposes [9].

Core Insights - SNDL reported its highest revenue and profit figures to date for Q4-2024 and the full year 2024, indicating improved financial performance [1] - The company's stock price is considered undervalued, suggesting potential investment opportunities [1] Financial Performance - SNDL experienced increased revenue, profits, and free cash flow in Q4-2024 compared to previous periods [1] - The financial results reflect a significant improvement in the company's overall performance metrics [1] Market Sentiment - Investor sentiment towards SNDL is positive, driven by the company's strong financial results and growth potential in the cannabis industry [1]

Financial Data and Key Metrics Changes - SNDL reported record full year net revenue of $920 million, a 1.3% increase year-over-year, driven by a combined cannabis business growth of 10.6% [14][11] - Q4 2024 net revenue reached a record $257.7 million, a 3.7% increase compared to Q4 of the previous year [11] - Gross profit for the full year was $240 million, reflecting a 26% growth year-over-year, with a full year gross margin of 26.1% [14][12] - Free cash flow for 2024 was positive at $8.9 million, exceeding guidance and representing a $70 million improvement compared to 2023 [16][14] Business Line Data and Key Metrics Changes - Cannabis operations segment achieved net revenue of $37.1 million in Q4 and $109.5 million for the full year, with growth rates of 42% and 26% respectively [25] - Cannabis retail reported Q4 net revenue of $83.2 million, a 10.7% increase year-over-year, driven by same-store sales growth of 6.3% [22][23] - Liquor retail segment experienced a decline of 3.4% in Q4 compared to the previous year, although gross margin improved to nearly 22% [21][12] Market Data and Key Metrics Changes - The liquor segment is expected to see flat revenue growth in 2025, with a long-term underlying growth rate of 1% to 1.5% [42][44] - The cannabis market continues to show strong momentum, with SNDL's cannabis segments growing well ahead of market averages [4][3] Company Strategy and Development Direction - SNDL is focused on long-term growth through strategic initiatives, including the acquisition of Endiva, positioning the company as the largest manufacturer of infused edibles in Canada [7][29] - The company is applying for a listing on the Canadian Stock Exchange to provide shareholders with additional flexibility and optionality [8][51] - SNDL aims to achieve $100 million in annualized free cash flow within the next three years [38] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a slowdown in liquor sales across North America, impacting the entire market, but anticipates a return to growth in the long term [42][44] - The company remains optimistic about its cannabis operations, citing significant improvements and new records in financial performance [27][25] - Management emphasized the importance of operational and financial discipline as a winning formula for sustainable value delivery to shareholders [6][3] Other Important Information - SNDL ended the year with $218 million in unrestricted cash and zero outstanding debt, providing a competitive advantage for capital allocation [8] - The company has implemented productivity improvements totaling $8 million in Q4, primarily from cannabis operations [32] Q&A Session Summary Question: Outlook for liquor retail segment given weak same-store sales - Management noted a slowdown in liquor sales across North America and anticipates flat revenue growth for 2025, with a long-term growth rate of 1% to 1.5% [42][44] Question: Performance of US investments and operational challenges - Management highlighted challenges in the US cannabis market, particularly in Florida, but remains optimistic about long-term potential and restructuring efforts [48][50] Question: Rationale behind CSE listing application - Management stated that the listing would create optionality for future growth opportunities, although no decisions regarding plant-touching activities have been made [53][51] Question: Growth in B2B orders and product performance - Management reported strong growth across all product categories, particularly in pre-rolls, vapes, and edibles, driven by increased distribution [60][62] Question: Importance of multiple banners in cannabis retail - Management indicated that both converting existing banners and adding new ones are part of the strategy to meet consumer preferences [66][67]

SNDL Inc. (NASDAQ:SNDL) Q4 2024 Earnings Conference Call March 18, 2025 10:00 AM ET Company Participants Zach George - Chief Executive Officer Alberto Paredero-Quiros - Chief Financial Officer Conference Call Participants Frederico Gomes - ATB Capital Markets Yewon Kang - Canaccord Genuity Operator Hello, everyone, and welcome to SNDL Fourth Quarter 2024 Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question and answer se ...

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", "anticipate", "plan" ...

Exhibit 99.1 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 /CNW/ - 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 ...

Core Insights - SNDL Inc. reported record full-year net revenue, gross profit, and gross margin for 2024, alongside positive cash flow and free cash flow [1][4][6] - The company achieved a net revenue of CAD 920.4 million for the full year, reflecting a growth of 1.3% year-over-year, and CAD 257.7 million for the fourth quarter, a 3.7% increase [6][10] - Gross profit reached CAD 240.3 million for the full year, up 26.2% from the previous year, with a gross margin of 26.1% [6][11] - The company is focused on long-term growth and shareholder value, with plans to list its shares on the Canadian Securities Exchange in April 2025 [5][8] Financial Performance - The operating loss for the fourth quarter was CAD 76.1 million, influenced by a negative valuation adjustment of CAD 65.7 million related to the SunStream portfolio [6][10] - Cash flow was negative by CAD 44.6 million in Q4 2024, but positive for the full year at CAD 23.3 million [6][10] - Free cash flow was positive at CAD 11.6 million for Q4 and CAD 8.9 million for the full year [6][11] Business Segments - Liquor Retail segment reported a decline in net revenue of 3.4% for Q4 and 4.1% for the full year, while Cannabis Retail grew by 10.7% in Q4 and 7.5% for the year [13][18] - Cannabis Operations saw a significant revenue increase of 42.4% in Q4 and 25.7% for the full year, driven by operational efficiencies and consumer innovation [22][26] - The company completed the acquisition of Nova Cannabis Inc. and Indiva Inc., enhancing its position in the cannabis market [7][26] Strategic Initiatives - SNDL is committed to enhancing its operational performance and financial discipline, with a strong balance sheet featuring CAD 218.4 million in unrestricted cash as of December 31, 2024 [6][8] - The company repurchased 10.8 million common shares at an average price of USD 1.81 per share, reflecting its strategy to manage share float [7][26] - SNDL aims to generate CAD 100 million in positive annual free cash flow within the next three years [8]