Endeavour Group has selected Tim Poole as its next chairman, the Australian liquor retail and drinks business announced today (18 February). Poole will succeed Duncan Makeig, the lead independent director who stepped in as interim chair in August following the resignation of Ari Mervis in August. Mervis left after “disagreements with the board”, having been elevated to executive chair in February 2025 following the departure of CEO Steve Donohue in March. The group, which owns drinks retailer Dan Murph ...

Group 1: Company Overview - SNDL Inc. operates in the Canadian adult-use cannabis market with a diversified business model that includes Liquor Retail, Cannabis Retail, Cannabis Operations, and Investments, allowing it to balance performance across segments [1] - The company is involved in the production, distribution, and sale of cannabis products, providing exposure to multiple parts of the value chain [1] Group 2: Recent Acquisitions - On January 8, SNDL completed the acquisition of five 1CM cannabis retail locations in Alberta and Saskatchewan, marking the first closing under its amended agreement with 1CM Inc. [2] - This acquisition is part of a larger plan to add 27 Ontario-based stores, which are pending regulatory approvals [2] - An amended agreement with 1CM Inc. was announced on December 15, 2025, to acquire 32 cannabis retail stores for a total cash consideration of $32.2 million, structured into two closings to meet regulatory requirements [3] Group 3: Financial Performance - In Q3 2025, SNDL reported a record quarterly free cash flow of $16.7 million and a positive cumulative free cash flow of $7.7 million for the first nine months of the year [4] - Net revenue increased by 3.1% year over year to $244 million, driven by strength in the Cannabis segment, which helped offset challenges in the Liquor Retail business [4] - These results indicate improving cash generation and resilience despite broader market headwinds [4]

Core Insights - A new individual business named Chengdu Xindu District Maolige Liquor Business has been established, with a registered capital of 10,000 RMB and operated by Ju Panpan [1] Business Overview - The business is authorized to engage in liquor sales and food sales, subject to necessary approvals from relevant authorities [1] - General business activities include sales of daily necessities, second-hand daily necessities, home goods, internet sales (excluding items requiring permits), and various technical services [1] - The business can independently conduct operations based on its business license, except for projects that require approval [1]

Core Insights - Uber is expanding its grocery and alcohol retail partnerships with new regional additions, including Stater Bros. Markets, Kowalski's Markets, and Big Red Liquors, enhancing its local offerings across the U.S. [1][4] Group 1: New Partnerships - The new partnerships will allow customers in Southern California, Minnesota, and the Midwest to access more regional favorites through the Uber and Uber Eats apps [2][4] - Stater Bros. is recognized for its high-quality meats and produce, Kowalski's for its gourmet selections, and Big Red for its local wines and craft spirits, catering to holiday hosting needs [3][4] Group 2: Growth in Retail Business - 2025 has been a significant year for Uber's grocery and retail business, with over 1,000 new retailers added globally and more than 50,000 retail locations across the U.S. [4][5] - The expansion includes well-known national brands alongside regional partners, emphasizing the importance of local brands in community identity [5][4] Group 3: Customer Experience - Uber One members benefit from $0 Delivery Fees on eligible grocery and retail orders, enhancing the shopping experience [3][4] - The process for customers includes selecting local stores, adding items to the cart, and tracking orders in real-time [7]

Financial Data and Key Metrics Changes - SNDL reported net revenue of CAD 244 million for Q3 2025, reflecting a 3.1% increase year-over-year, driven primarily by the cannabis segments [7][10] - Gross profit reached CAD 64.2 million, a 1.9% increase year-over-year, despite CAD 3.9 million in non-cash inventory-related adjustments [8][9] - Free cash flow for the quarter was CAD 16.7 million, marking a CAD 7.5 million improvement compared to the same period last year, and achieving positive cumulative free cash flow of CAD 7.7 million for the first nine months of the year [10][13] Business Line Data and Key Metrics Changes - The liquor retail segment generated net revenue of CAD 139.4 million, a 3.6% year-over-year decline, while gross profit was CAD 36.7 million, a modest reduction of CAD 0.2 million [14][15] - Cannabis retail achieved net revenue of CAD 85 million, a record high with a 4.8% year-over-year growth, and gross profit of CAD 22.5 million, reflecting an 8.5% increase [16] - Cannabis operations reported net revenue of CAD 37.4 million, a 50% growth year-over-year, driven by edibles and international sales [17] Market Data and Key Metrics Changes - The cannabis retail segment saw a 3.6% increase in same-store sales, contributing to a 12 basis points gain in market share [19] - International sales reached CAD 4.2 million in Q3, with expectations for continued growth due to strong demand and reliability of supply [20][33] Company Strategy and Development Direction - SNDL is focused on growth, profitability, and enhancing its workforce, with plans to open five new cannabis stores and two new Wine & Beyond stores in Q4 [19][21] - The company aims to strengthen its competitive position in Canada while resolving ongoing litigation related to Sunstream restructurings, which are expected to provide exposure to dynamic medical markets [5][6] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of CAD 11.9 million in unfavorable non-cash items on the P&L, but emphasized operational improvements and cash generation as key indicators of business fundamentals [4][3] - The outlook for cannabis retail is mixed, with signs of market maturity in provinces like Alberta and Ontario, but opportunities for margin improvement remain [36][39] Other Important Information - SNDL has no debt and over CAD 240 million in unrestricted cash, providing a strong balance sheet to support growth initiatives [5] - The company is experiencing a significant increase in share-based compensation due to a 121% rise in share price during Q3 [9][12] Q&A Session Summary Question: Clarification on cannabis operations write-offs - Management confirmed CAD 3.9 million inventory adjustment impacting gross profit and CAD 2.7 million fixed asset impairment affecting operating income but not gross margin [25][27] Question: Growth drivers for sales to provincial boards - Management noted softness in third-party retail sales but continued growth in their own segment, with expectations for regaining momentum through new products and innovation [29][30] Question: International sales outlook - Management expressed optimism about international sales growth, with strong demand and increasing purchase orders anticipated for Q4 and beyond [32][33] Question: Update on 1CMPharm transaction regulatory approval - Management stated that the review process is ongoing, with no additional information available at this time [35] Question: Market opportunities in cannabis retail - Management indicated a shift towards maturity in the market, with expectations for low single-digit revenue growth moving forward, while also noting improvements in gross margin [36][39] Question: RISE rewards program performance - Management reported strong engagement from loyalty members and plans to roll out a similar program for the liquor business [41]

Core Insights - SNDL Inc. reported strong financial results for Q3 2025, achieving record free cash flow and positive cumulative free cash flow for the first nine months of the year, indicating operational and profitability improvements [4][6][8] - The company maintains a strong balance sheet with no debt and $240.6 million in unrestricted cash, positioning it for growth and investment opportunities [5][6] Financial Performance - **Net Revenue**: In Q3 2025, net revenue was $244.2 million, a 3.1% increase from Q3 2024, driven by a 13.5% growth in the combined Cannabis business, partially offset by a decline in the Liquor retail segment [6][8][30] - **Gross Profit**: Gross profit reached $64.2 million, up 1.9% year-over-year, with a gross margin of 26.3%, reflecting a slight decrease of 0.3 percentage points [6][8][30] - **Operating Income**: The company reported an operating loss of $11.1 million, improved by 40.3% compared to the previous year, influenced by non-cash items and restructuring charges [6][8][30] - **Free Cash Flow**: Free cash flow hit a record $16.7 million, primarily due to a reduction in working capital, despite significant CAPEX investments [6][8][30] Business Segments - **Cannabis Retail**: Generated net revenue of $85.0 million, a 4.8% increase year-over-year, with operating income growing by 107.2% [18][21] - **Cannabis Operations**: Achieved a 49.5% increase in net revenue to $37.4 million, although it faced an operating loss due to inventory write-offs [20][27] - **Liquor Retail**: Experienced a decline in net revenue to $139.4 million, down 3.6% year-over-year, with same-store sales decreasing by 2.6% [15][16] Strategic Initiatives - The company is pursuing the acquisition of 32 cannabis retail stores from 1CM Inc. for $32.2 million, pending regulatory review [12] - SNDL is investing in organic growth with plans for five new Cannabis store openings and two new Wine & Beyond stores in Q4 2025 [12] - The company continues to restructure SunStream Bancorp Inc. to enhance shareholder exposure to medical cannabis markets [12][27] Investment Portfolio - As of September 30, 2025, SNDL's investment portfolio had a carrying value of $410.8 million, with a positive operating income of $1.5 million generated during the quarter [27] - The company realized a gain of $5.3 million from the partial sale of its equity position in High Tide Inc. [27]

Core Insights - The Endeavour Group reported a total sales figure of $3.1 billion for the first quarter, reflecting a slight decrease of 0.3% compared to the same period last year [3] - Retail sales amounted to $2.5 billion, which is a decline of 1.4% from the first quarter of the previous fiscal year [3] - The decline in retail sales is attributed to lower specialty business sales due to the integration of Shorty's operations into Dan Murphy's and the transition of Jimmy Brings to a partnership model [3]

Core Viewpoint - A new individual business named Guandu District Zongchun Liquor Sales Department has been established, focusing on liquor sales and related products [1] Company Summary - The legal representative of the newly established business is Zong Lei [1] - The registered capital of the business is 100,000 RMB [1] - The business scope includes licensed projects such as liquor sales, food sales, and retail of tobacco products, which require approval from relevant authorities before operation [1] Industry Summary - General projects include food sales (only pre-packaged food), internet sales (excluding items requiring licenses), daily necessities sales, and daily consumer goods sales (operating independently with a business license, excluding projects requiring approval) [1]

Financial Data and Key Metrics Changes - SNDL reported net revenue of $245 million for Q2 2025, reflecting a 7.3% increase year over year [8] - Gross profit reached $67.6 million, a 16.2% growth year over year, matching the record gross margin of 27.6% achieved in Q1 2025 [9] - Adjusted operating income was $5.8 million, marking a 226% increase year over year, with the first positive operating income in the company's history [10] Business Segment Data and Key Metrics Changes - The cannabis retail segment achieved net revenue of $84.4 million, representing 11% year over year growth, driven by an 8.2% increase in same store sales [16] - The liquor retail segment delivered net revenue of $141.9 million, marking a 1% year over year increase, supported by a 2.7% growth in same store sales [14] - Cannabis operations segment reported net revenue of $35.8 million, reflecting a 43% growth compared to the prior year, driven by edibles and international sales [17] Market Data and Key Metrics Changes - The cannabis business expanded at nearly three times the rate of the Canadian recreational market, outperforming direct competitors [4] - International sales for cannabis amounted to $3.8 million in Q2 2025, indicating growth in export revenues [48] Company Strategy and Development Direction - The company focuses on three strategic pillars: growth, profitability, and people, with a commitment to expanding its cannabis retail footprint in Canada [19][20] - SNDL is actively monitoring the U.S. market while expanding its international presence, serving patients in the UK and Continental Europe [6] - The company aims to achieve sustainable long-term value for shareholders through operational improvements and cost management [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth and operational efficiency, despite challenges in the broader market [5][21] - The company is optimistic about international sales growth, although it will be off a slow base [29] - Management highlighted the importance of maintaining a strong balance sheet with no debt and over $200 million in unrestricted cash [6] Other Important Information - The company achieved a $5 million reduction in overhead expenses year over year, despite inflationary pressures [22] - The Rise Rewards loyalty program is in early stages, with a six-figure membership count [30] Q&A Session Summary Question: International sales growth and domestic sales prioritization - Management indicated that international sales growth does not detract from focus on the Canadian market and expects meaningful growth in the second half of the year [29] Question: Update on the Rise Rewards loyalty program - Management confirmed progress in member sign-ups, with announcements planned as key milestones are reached [30] Question: Potential expansion of cultivation footprint - Management noted that current cultivation efforts meet about 15% of total biomass needs and are cautious about capital investments in new facilities [32] Question: Satisfaction with current supply chain and margins - Management acknowledged early days in Europe with high margins but noted volatility and external shocks affecting supply chains [38] Question: Commentary on liquor segment growth - Management attributed liquor segment growth to effective banner management and consumer engagement, particularly in the Wine and Beyond banner [44] Question: Clarification on wholesale revenue for cannabis - Management disclosed that international sales for cannabis amounted to $3.8 million in Q2 2025 [48] Question: Aspirations for market share in Canadian recreational sales - Management expressed a focus on profitable growth rather than solely increasing market share, acknowledging the oligopolistic nature of the market [51] Question: Update on U.S. assets and consolidation - Management indicated that consolidation of U.S. assets is pending the resolution of ongoing legal processes [53] Question: Management's role in Parallel operations - Management clarified that SNDL is not engaged in plant-touching activities in the U.S. to maintain compliance with NASDAQ [57]

Core Insights - SNDL Inc. achieved positive operating income and net earnings for the first time in its history during Q2 2025, marking a significant milestone in its strategic improvement agenda [4][10][12] - The company experienced growth across all operating segments, particularly in its Cannabis business, which expanded at nearly three times the rate of the Canadian recreational market [5][10] - SNDL's strong balance sheet, with no debt and $208.2 million in unrestricted cash, positions it well for pursuing high-return growth opportunities [7][10] Financial Performance - Net revenue for Q2 2025 was $244.8 million, a 7.3% increase from Q2 2024, driven by a 17.4% growth in the combined Cannabis business [9][10] - Gross profit reached $67.6 million, reflecting a 16.2% increase year-over-year, with a gross margin of 27.6%, up 2.1 percentage points from the previous year [10][12] - Operating income was $5.0 million, with an adjusted operating income of $5.8 million after accounting for restructuring charges [10][12] Business Segment Highlights - **Cannabis Retail**: Net revenue increased by 11.0% to $84.4 million, with operating income growing by 106.6% to $8.1 million [14][20] - **Cannabis Operations**: Reported a 43.5% increase in net revenue to $35.8 million, with operating income of $2.3 million, a significant turnaround from a loss in the previous year [22][26] - **Liquor Retail**: Net revenue rose by 1.0% to $141.9 million, with same-store sales growth of 2.7% despite operating five fewer stores than the previous year [16][18] Strategic Initiatives - The company entered into an agreement to acquire 32 cannabis retail stores for $32.2 million, expected to close in Q3 2025 [11] - SNDL launched the Rise Rewards loyalty program aimed at enhancing customer engagement and driving sales [11] - A formal strategic review was initiated to evaluate SNDL's exposure to U.S. multi-state licensed cannabis enterprises and its current exchange listings [11] Investment Portfolio - As of June 30, 2025, SNDL's investment portfolio had a carrying value of $406.1 million, with a significant portion allocated to SunStream Bancorp Inc. [26] - The investment portfolio generated a positive operating income of $1.8 million during Q2 2025, primarily from interest earned [26] - The company holds an 8.2% ownership stake in High Tide, with a total of 6,622,645 shares purchased [26]