SNDL Reports Fourth Quarter and Full Year 2024 Financial and Operational Results

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]