SNDL FY22 Revenue Grows 1170% To $525.8M, Here Is What You Need To Know

SNDL Inc. SNDL released its financial and operational results for the full year and fourth quarter ended December 31, 2022, revealing record net revenue of CA$712.2 million ($525.8 million), an increase of 1170% over the previous year.

Full Year 2022 Financial Highlights

• Gross margin grew to a record CA$140.4 million for 2022, compared to a loss of CA$9.0 million in the previous year, and represents an increase of 1,660%.

• Net loss of CA$372.4 million for 2022, compared to CA$226.8 million in the previous year. Non-cash inventory and asset impairments were CA$203.0 million in 2022 compared to CA$77.0 million in 2021.

• Adjusted EBITDA loss was CA$15.8 million in 2022, compared to adjusted EBITDA of CA$30.4 million in the previous year.

• CA$918.0 million of unrestricted cash, marketable securities, and long-term investments and no outstanding debt at December 31, 2022, resulting in a net book value per share of CA$5.02; and CA$207 million of unrestricted cash at April 19, 2023. SNDL has not raised cash through share offerings since June 2021.

Q4 2022 Financial Highlights

• Net revenue was CA$240.4 million, an increase of 4% over the third quarter of 2022.

• Gross margin was CA$43.6 million, compared to CA$50.3 million in the third quarter of 2022.

• Net loss was CA$161.6 million compared to CA$98.8 million in the third quarter of 2022.

• Adjusted EBITDA loss was CA$7.5 million for the fourth quarter of 2022, compared to adjusted EBITDA of CA$16.7 million in the fourth quarter of 2021.

"2022 was another transformational year for SNDL. We increased the sustainability of our business model by achieving record-breaking revenue and gross margin as well as positive and increasing cash provided from operating activities in our two most recent quarters," stated Zach George, CEO of SNDL. "Our vertical integration strategy is beginning to show its intended results, and we are working to gain stability in a challenging and dynamic industry. Our acquisition of Valens provides midstream capabilities in every material cannabis product category and the ability to selectively balance higher cost cultivation costs while taking advantage of the current massive oversupply in Canadian markets.”

“We now expect to materially outperform our originally contemplated savings and are on target to realize more than CA$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. We must continue to find ways to unlock value and evaluate all options regarding the future of our business and operating segments. Sustainability is a key priority, which means sustainably profitable operations, sustainable product quality, and sustainable environmental practices. Our drive to create exceptional consumer products and experiences is key to SNDL's momentum and future success. We continue to see positive results across all of our key operating segments and remain committed to our goal of becoming free cash flow positive," concluded George.

Photo: Benzinga edit with photo by Kindel Media on Pexels

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