Workflow
Sundial(SNDL) - 2023 Q4 - Annual Report
SNDLSundial(SNDL)2024-03-21 14:11
Transcript
Slide

Financial Performance - Gross revenue for the year ended December 31, 2023, was CAD 957,725 thousand, an increase of 31.2% from CAD 729,694 thousand in 2022[30] - Net revenue for 2023 was CAD 909,006 thousand, up 27.7% from CAD 712,197 thousand in 2022[30] - The company reported a net loss of CAD 176,551 thousand for 2023, compared to a net loss of CAD 372,428 thousand in 2022, indicating a 52.7% improvement[30] - The company experienced a gross profit of CAD 190,415 thousand in 2023, compared to CAD 140,375 thousand in 2022, reflecting a 35.7% increase[30] - Adjusted EBITDA from continuing operations for the year was 29,205,000,withliquorretailcontributing29,205,000, with liquor retail contributing 61,739,000 and cannabis retail operations showing a loss of 12,425,000[37]−ThetotaloperatinglossfortheyearendedDecember31,2023,was12,425,000[37] - The total operating loss for the year ended December 31, 2023, was 162,818,000, primarily driven by cannabis operations which reported a loss of 112,445,000[41]−AdjustedoperatingincomefortheyearendedDecember31,2023,wasalossof112,445,000[41] - Adjusted operating income for the year ended December 31, 2023, was a loss of 97,675,000, with liquor retail showing a positive adjusted operating income of 24,630,000[41]−Thecompanyincurredrestructuringcostsof24,630,000[41] - The company incurred restructuring costs of 19,573,000 for the year ended December 31, 2023, impacting overall profitability[41] - Depreciation and amortization expenses for the year totaled 60,216,000,withliquorretailaccountingfor60,216,000, with liquor retail accounting for 35,662,000[36] Cash Flow and Liquidity - Cash and cash equivalents at the end of 2023 were CAD 195,041 thousand, a decrease of 30.3% from CAD 279,586 thousand at the end of 2022[33] - Free cash flow for Q4 2023 was 1.383million,adecreaseof871.383 million, a decrease of 87% compared to 10.584 million in Q4 2022[44] - Full-year free cash flow for 2023 was negative at (60.883)million,comparedto(60.883) million, compared to (31.900) million in 2022[44] - The change in cash and cash equivalents for Q4 2023 was (6.942)million,animprovementfrom(6.942) million, an improvement from (11.841) million in Q4 2022[44] - Total cash used for common share repurchases in 2023 was 1.536million,downfrom1.536 million, down from 13.390 million in 2022[44] - Cash provided by long-term investments in Q4 2023 was 8.325million,comparedto8.325 million, compared to 17.693 million in Q4 2022[44] - The company had no cash used for acquisitions in Q4 2023, while it recorded (2.509)millioninQ42022[44]−Totalcashusedforchangestodebtinstrumentswas(2.509) million in Q4 2022[44] - Total cash used for changes to debt instruments was 0 in 2023, compared to 10millionin2022[44]−Thecompanyreportedatotalchangeincashandcashequivalentsof10 million in 2022[44] - The company reported a total change in cash and cash equivalents of (84.545) million for the full year 2023, an improvement from (278.665)millionin2022[44]−Thecompanyaimstoenhanceitsfinancialperformancebyfocusingonfreecashflowasakeymetricforinvestors[43]−Thecompanycontinuestoevaluateitsoperationalcashflowsbyexcludingnon−operationalcashusesinitsfreecashflowcalculation[43]StrategicInitiatives−Thecompanyaimstoachievesustainable,positivegrossmarginsandpositivefreecashflowinthefuture[28]−Thecompanyplanstoexpanditsproductofferings,includingtheexpectedexpansionofitswineprivatelabel[28]−ThecompanyisfocusedonstrategiccapitaldeploymentthroughinvestmentsandpartnershipsintheNorthAmericancannabisindustry[27]AssetManagement−TotalassetsdecreasedtoCAD1,473,164thousandasofDecember31,2023,downfromCAD1,559,350thousandin2022[31]−Thecompanyrecognizedanassetimpairmentof(278.665) million in 2022[44] - The company aims to enhance its financial performance by focusing on free cash flow as a key metric for investors[43] - The company continues to evaluate its operational cash flows by excluding non-operational cash uses in its free cash flow calculation[43] Strategic Initiatives - The company aims to achieve sustainable, positive gross margins and positive free cash flow in the future[28] - The company plans to expand its product offerings, including the expected expansion of its wine private label[28] - The company is focused on strategic capital deployment through investments and partnerships in the North American cannabis industry[27] Asset Management - Total assets decreased to CAD 1,473,164 thousand as of December 31, 2023, down from CAD 1,559,350 thousand in 2022[31] - The company recognized an asset impairment of 54,967,000, with cannabis operations contributing significantly to this figure[37] - For the year ended December 31, 2023, the total net loss from continuing operations was 172,016,000,withsignificantlossesincannabisoperationsamountingto172,016,000, with significant losses in cannabis operations amounting to 112,159,000[36] Other Financial Metrics - The company reported a net loss of 85,423,000forthethreemonthsendedDecember31,2023,withcannabisretailoperationsincurringalossof85,423,000 for the three months ended December 31, 2023, with cannabis retail operations incurring a loss of 65,434,000[37] - For the three months ended December 31, 2023, the company reported an adjusted EBITDA of 3,479,000,withliquorretailcontributing3,479,000, with liquor retail contributing 17,812,000[38] - The change in fair value of biological assets resulted in a gain of $7,936,000 for the year, indicating potential growth in cannabis operations[37]