SNDL Inc. (NASDAQ: SNDL) exceeded analyst expectations for both the fourth quarter and full year ending Dec. 31, 2024, posting record revenue figures driven primarily by strong performance in the cannabis side of things.
The company reported fourth-quarter revenue of $257.7 million, surpassing the Yahoo Finance analyst expectation of $197.75 million by a decent margin of around 30%. For the full year, SNDL achieved revenue of $920.45 million, slightly above the analyst projection of $920.4 million.
“We are pleased with the continued progress reflected in our fourth-quarter and full-year 2024 results, as we set new records and exceeded our commitment to achieving break-even free cash flow for the year,” CEO Zach George said in a statement.
The quarterly revenue represents a 3.7% increase versus the same period in 2023, while the full-year figure shows a more modest 1.3% year-over-year growth.
Additionally, SNDL reported net loss of $96.2 million for 2024, a sizable 45.5% improvement from the $176.6 million loss posted in 2023. The reduction came despite one-time charges, including a $65.7 million negative valuation adjustment of the SunStream portfolio and a $15 million Spiritleaf intangible write-off in the fourth quarter.
SNDL achieved several operational milestones in 2024, including record gross profit of $240.3 million (up 26.2% year-over-year) and improved gross margin of 26.1%, up 5.2 percentage points from 2023. The company generated positive free cash flow of $8.9 million for the full year, meeting a key financial target.
“We have accomplished this while continuing to transform our business by investing in growth opportunities and strengthening our organizational capabilities,” George noted, pointing to moves such as the snapping up of Indiva Inc., which positioned SNDL as Canada’s largest manufacturer of infused edibles.
The combined cannabis business was the primary growth driver for all of it, showing a 16.5% increase in the fourth quarter and 10.6% growth over the full year versus 2023 figures. That helped offset the 4.1% annual revenue decline in the company’s larger liquor retail segment.
SNDL maintained financial flexibility with $218.4 million in unrestricted cash and no outstanding debt at year-end, while actively repurchasing shares with over 10.7 million common shares bought back during the past six months at an average price of US$1.81 per share.
The company aims to generate $100 million in positive annual free cash flow within the next three years, according to George, who cited the company’s “strong balance sheet” as giving it the “flexibility to thoughtfully deploy capital into organic and inorganic investments with attractive returns.”
[[{“value”:”The Canadian cannabis and liquor retailer saw operational lifts while working through investment portfolio adjustments.
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