The earnings call presented a mixed outlook with significant achievements in gross margin and free cash flow, alongside strategic acquisitions positioning the company for future growth. However, challenges such as declines in the Liquor segment and negative adjusted operating income tempered the otherwise positive results.

Company Guidance

In the third quarter of 2024, SNDL reported robust financial performance, achieving a record gross margin of 26.6% and positive free cash flow of $9.2 million. Cannabis segments led with an 8% revenue growth, while Liquor retail faced a marginal revenue decline but improved its operating income by 42.5% year-over-year. The company increased its cash balances to $263 million, maintaining zero outstanding debt. Strategic initiatives included a $20 million annualized savings restructuring program and acquisitions of Indiva and Nova, enhancing SNDL's position in the Canadian infused edibles market. Despite a negative adjusted operating income of $16.6 million, primarily due to a $13.4 million fair value adjustment, the company demonstrated improved profitability and is on track to achieve positive free cash flow for the calendar year.

Record-Breaking Gross Margin

Achieved an all-time high gross margin of 26.6% in Q3 2024, propelled by margin expansion in Liquor retail and significant improvements in Cannabis operations.

Positive Free Cash Flow

Reported a positive free cash flow of $9.2 million for Q3 2024, marking an upward trend compared to previous quarters.

Strong Cannabis Segment Growth

Cannabis segment posted an 8% growth in net revenue, contributing to a $14 million improvement in gross profit.

Strategic Acquisitions

Closed the acquisition of Indiva, emerging as a leader in the Canadian infused edibles category, and privatized Nova to benefit fully from retail segment growth.

Liquidity and Debt Management

Increased cash balances from $183 million to $263 million with no outstanding debt and an active share repurchase program.

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SNDL (SNDL) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

SNDL Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 14, 2019	2019 (Q2)	- / -1.60	―	―	―	―
Nov 13, 2019	2019 (Q3)	- / -7.36	―	―	―	―
May 15, 2020	2019 (Q4)	- / -2.85	-2.777	-2.50% (-0.07)	―	―
May 15, 2020	2020 (Q1)	- / -	-0.4	―	―	―
Aug 13, 2020	2020 (Q2)	- / -2.08	-1.597	-30.43% (-0.49)	―	―
Nov 11, 2020	2020 (Q3)	- / -0.16	-7.36	97.79% (+7.20)	―	―
Mar 17, 2021	2020 (Q4)	- / -0.88	-9.443	90.71% (+8.57)	―	―
May 11, 2021	2021 (Q1)	-0.02 / -0.62	-2.847	78.05% (+2.22)	―	―
Aug 12, 2021	2021 (Q2)	0.00 / -0.21	-2.083	90.00% (+1.87)	―	―
Nov 11, 2021	2021 (Q3)	0.00 / 0.06	-0.162	134.19% (+0.22)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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SNDL Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 05, 2024	$2.16	$2.39	+10.65%
Aug 02, 2024	$2.21	$2.11	-4.52%
May 09, 2024	$2.46	$2.40	-2.44%
Mar 21, 2024	$1.53	$1.44	-5.88%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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