Sundial Growers Sinks 7% Following “Record” Revenue, Wider Net Loss In Q2 2022; Rebrands To SNDL

SNDL Inc. (Nasdaq: SNDL) reported on Friday its Q2 2022 financial results. The firm recorded quarterly net revenue of $223.7 million, up from Q1 2022’s $17.6 million and Q2 2021’s $9.2 million.

Gross margin increased to $43.1 million from the losses of $3.4 million and $2.8 million in the previous quarter and year-ago period, respectively.

But the firm still ended with an operating loss of $81.4 million, down from last year’s $71.0 million loss. The increase in losses is said to be “due to investment losses of $37.4 million, share of loss of equity-accounted investees of $41.7 million, higher general and administrative expenses of $30.2 million, depreciation and amortization of $7.9 million.”

This led the firm to end with a net loss of $74.0 million, down from the net losses of $38.0 million and $52.3 million last quarter and last year, respectively. The quarterly loss is translates to $0.31 loss per share.

Calibrating for financial items, adjusted EBITDA came in at a loss of $25.9 million, down from Q1 2022’s loss of $0.7 million and Q2 2021’s loss of $0.2 million.

The firm’s shares slumped by 7.3% during after-market hours after the financial results were released, just after the company rose 8.3% on the day.

Despite the losses, the company ended the quarter with “$900 million of cash, marketable securities, and long-term investments and no outstanding debt.” Cash and cash equivalents balance, however, landed at $362.6 million at the end of the quarter from a beginning balance of $422.8 million. The outflow is mostly driven by expenses and equity-accounted investees.

This puts the balance of the current assets at $600.5 million while current liabilities ended at $66.5 million.

The company also announced its rebrand efforts to change its name from “Sundial Growers” to “SNDL”, following its approval from the shareholders.

“The rapid and material changes to our business over the last two years have led to our original “Sundial Growers” identity becoming less relevant,” said CEO Zach George. “We believe that the new SNDL brand better reflects our corporate activities and the undeniable impact that retail investor support has had on our survival and ability to build Canada’s largest private sector distribution platform for liquor and cannabis.”

SNDL last traded at US$3.00 on the Nasdaq.


Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Stifel-GMP: SNDL Acquiring Valens “Does Not Come As A Surprise”

On August 22, SNDL Inc (NASDAQ: SNDL) announced that it would be acquiring Valens Company...

Friday, August 26, 2022, 04:13:00 PM

Sundial Reports Q2 Earnings with Significant Related Party Transactions

This morning Sundial Farms (NASDAQ: SNDL) reported their second quarter of financial earnings, here is...

Wednesday, August 14, 2019, 03:45:17 PM

SNDL Begins Exit Of Canadian Cannabis Retail Via Licensing Model With Nova Cannabis

SNDL (NASDAQ: SNDL) is evidently looking to gracefully exit the Canadian cannabis retail market. The...

Wednesday, December 21, 2022, 07:55:03 AM

Sundial: Preserving Capital Is A Key Priority – The Daily Dive

On today’s Daily Dive, we sit down for the first time with Zachary George, whom...

Wednesday, December 15, 2021, 01:30:00 PM

SNDL Finally Acquires Zenabis Assets Via CCAA Process

It may have taken a bit of time, but SNDL Inc (NASDAQ: SNDL) has finally...

Tuesday, November 1, 2022, 08:38:51 AM