SNDL Inc. (NASDAQ: SNDL) announced additional optimizations of its facility footprint on Thursday to boost its cannabis operations segment.
What Happened
The Calgary, Alberta-based company said it would consolidate all cultivation activities at its Atholville, New Brunswick facility following the centralization of SNDL's manufacturing, processing and production operations to Kelowna, British Columbia.
Why It Matters
SNDL expects optimizing its facility footprint to result in over $10 million in annual savings from its cannabis operations segment through reduced fixed overhead, power costs and labor efficiencies.
These cost savings are in addition to the previously announced $18.2 million of annualized cost savings since the acquisition of The Valens Company Inc. in January 2023.
"In the past year, we've transformed our facility footprint with a clear goal of achieving profitability in our Cannabis Operations by 2024," Tyler Robson, SNDL's president of ...