2023-04-24 07:09:42 ET
SNDL ( NASDAQ: SNDL ) Q4 net revenue grew +958.17% Y/Y to ~C$240.41M.
The company said net revenue increased +4% over Q3 2022, with sequential growth in Liquor Retail, Cannabis Retail and Cannabis Operations segments.
For full year 2022, net revenue rose +1170% Y/Y to C$712.2M.
Net loss in Q4 widened to -C$161.6M, compared to -C$98.8M in Q3 2022. Net loss for 2022 was -C$372.4, compared to C$226.8M in 2021.
SNDL said that the net loss in 2022 was was mainly due to Q4 non-cash charges including the impairment of goodwill related to the Alcanna transaction, including Nova.
The company added that despite improving fundamentals for Nova, the share price decline of 53% since the acquisition date required a C$88M non-cash adjustment.
Adjusted EBITDA loss was -C$7.5M, compared to +C$16.7M in Q4 2021.
"We now expect to materially outperform our originally contemplated savings and are on target to realize more than $20.0 million in cost synergies. Despite the positive milestones and growth we have achieved, SNDL's shares are trading at near all-time lows, well below our book value and materially less than 1X our annualized revenue," said SNDL CEO Zach George.
The company noted that it expects to realize more than C$20M in annual cost savings due to integration of SNDL and Valens, exceeding the C$10M which was announced in January 2023.
Gross revenue for Liquor Retail sales for the three banners combined was C$462.2M in 2022 and $159.7M in Q4 2022, growing +4.8% compared to Q3 2022.
Cannabis Retail segment gross revenue in Q4 grew +584% Y/Y to C$68.4M. For 2022, gross revenue was C$205.6M, compared to C$16.1M in 2021.
SNDL noted that the the Nova acquisition in 2022 and increased Value Buds sales were the main drivers of the increase with C$61.4M of revenue in Q4 2022.
Cannabis Operations segment gross revenue increased +19.1% Y/Y to C$18.7M. For 2022, gross revenue rose +20.9% Y/Y to C$61.9M.
Other metrics :
Net cash used in operating activities for 2022 was C$6.7M, compared to C$155.8M in 2021.
SNDL +1.39% to $1.46 premarket April 24
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SNDL trades higher after Q4 revenue surges 958% Y/Y but FY22 net loss widens