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.”
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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.
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