SNDL posts $3.8 million in adjusted operating income from its cannabis businesses in Q3 2024

November 5, 2024 | Sarah Clark

SNDL posted $236.9 million in revenue in the third quarter of 2024, with an $18.5 million loss.

Q3 2024, which includes the three months ending September 30, 2024, saw the Alberta-based company remain relatively level, year-over-year, in terms of revenue, but a 13% increase in net losses from the same period in 2023. In its previous quarterly report, SNDL reported a $4.6 million loss in adjusted operating income.

The company, which operates cannabis and alcohol businesses, posted net revenue of $81.1 million from its retail cannabis operations and $25 million from its cannabis operations. SNDL reported $4.4 million in adjusted operating income from its retail cannabis operations and a $578,000 loss on its cannabis production businesses.

Retail cannabis net revenue was up 7.4% from the same period in the previous year at $75.5 million, and adjusted operating income was up from $3.4 million. Net revenue from SNDL’s cannabis operations was up from $21 million in Q3 2023, while its adjusted operating loss was down from $14.2 million.

SNDL is Canada’s largest private-sector cannabis retailer by store count, operating 187 locations in the most recent quarter under its three retail banners: “Value Buds”, “Spiritleaf”, and “Superette.” Same-store sales increased 2.3% in Q3 2024 compared to Q3 2023. As of November 4, 2024, the Spiritleaf store count was 81 (20 corporate stores and 61 franchise stores), the Superette store count was four corporate stores, and the Value Buds store count was 102 corporate stores.

SNDL also brought in $4 million through its “proprietary data licensing program” in the third quarter of 2024.

“We are pleased with the substantial progress reflected in our results for the third quarter of 2024 as we advance towards sustainable profitability,” said Zach George, Chief Executive Officer of SNDL. “Our team delivered a record gross margin, positive cash flow and free cash flow, and closed the quarter with over a quarter billion dollars in unrestricted cash and zero debt. We are materially improving our operational performance while executing multiple strategic initiatives that we believe will solidify our foundation and drive sustained, profitable growth.”

On November 4, SNDL also announced that it had successfully closed its acquisition of the Indiva Group’s business, a move the company says will make it a leader in producing cannabis edibles in Canada.

The acquisition includes Indiva’s facility in London, Ontario, and a portfolio of owned and licensed brands like Pearls by Grön, No Future gummies and vapes, Bhang chocolate, Indiva Blips tablets, Indiva Doppio sandwich cookies, and Indiva 1432 chocolate. Indiva boasts a portfolio of seven brands and 53 listed SKUs, all manufactured in the company’s 40,000-square-foot production facility.

Indiva entered creditor protection this past June.