Sundial Growers Shares Soar 21% After Company Posts Q1 Earnings

Earnings are out for Canadian cannabis LP Sundial Growers Inc. SNDL, which published its financials for the first quarter of the year, ended March 31, 2022.

The Monday report was welcomed positively by the market. Shares soared following its publication, closing Monday’s trading session at $0.46, up 21% from its previous market close.

The company posted a net revenue for the quarter of CA$17.6 million ($13.2 million), an increase of 78% over the first quarter of 2021.

Adjusted EBITDA was a loss of CA$0.7 million ($0.54 million).

This quarter was marked by one of the largest M&A actions in the company’s history. On March 31, Sundial closed the acquisition of Alcanna Inc. for $255 million. The new subsidiary had a revenue of CA$162.5 million ($126.4 million) in the same quarter.

"We are now Canada's largest private-sector distributor of both liquor and cannabis with 354 retail locations,” said CEO Zach George.

The company also has a strong cash position: Cash, marketable securities, and long-term investments and no outstanding debt amount to CA$1.0 billion ($778 million) at the end of the quarter, with CA$361 million ($280 million) of unrestricted cash at May 13, 2022.






 

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Posted In: CannabisPenny StocksSmall CapMarketsZach George
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