SNDL Inc (NASDAQ: SNDL) this morning reported record net revenue for 2023 of $909.0 million, a jump of 28% over 2022’s performance. Gross profit meanwhile came in at 21% of sales, or $190.4 million.
Despite the improvement, SNDL is still cash flow negative, with cash flow coming in at negative $84.5 million for the year. Positive free cash flow however is claimed to have occurred in the second half of the year, at $17.7 million.
“The generation of stabilized free cash flow continues to be a top priority for our team, and I am proud that we delivered on this stated objective during the last two quarters. This period was foundational as we acquired Valens, welcomed top-tier leaders and streamlined our balance sheet, positioning SNDL for improved performance in 2024 and beyond,” commented CEO Zach George.
SNDL posted an operating loss for full year 2023 of $162.8 million, while Adjusted EBITDA amounted to $29.2 million.
For the fourth quarter, SNDL posted revenue of $248.5 million, along with gross profit of $57.3 million. Despite the company stating it had free cash flow of $1.4 million in the fourth quarter, SNDL posted an operating loss of $84.9 million and Adjusted EBITDA of $3.5 million.
READ: SNDL To Close Olds, Alberta Facility As It Consolidates Cannabis Operations
The improve results follow the closure of the Olds, Alberta facility as SNDL looks to optimize its operations. Its remaining cannabis cultivation operations were consolidated to Atholville, New Brunswick, while manufacturing and processing occurs on the other side of the country in Kelowna, BC.
SNDL closed the quarter with $195.0 million in cash and cash equivalents, and current liabilities of $103.1 million.
SNDL last traded at $1.53 on the Nasdaq.
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