Cannabis, alcohol firm SNDL loses CA$372.4 million in 2022

Calgary, Alberta-based SNDL reported a net loss of 372.4 million Canadian dollars ($275 million) for 2022, up substantially over 2021’s CA$226.8 million, due partly to asset impairments in its cannabis retail division.

SNDL, which operates separate cannabis and alcohol retail channels, as well as marijuana production, said noncash inventory and asset impairments amounted to CA$203 million last year, compared with CA$77 million one year earlier.

The company said that despite improving fundamentals for Nova Cannabis, a marijuana retailer it acquired last year, the share price declined by more than half since the acquisition, causing an CA$88 million noncash charge.

Full-year net revenue for SNDL was CA$712.2 million, up more than 1,100% over the previous year, thanks largely to its acquisition of Alcanna.

SNDL bought Edmonton, Alberta-headquartered Alcanna for approximately CA$320 million in cash and shares on March 31, 2022.

That deal included Alcanna’s 78 cannabis outlets across Alberta, Ontario and Saskatchewan plus 171 liquor stores.

SNDL’s gross liquor retail revenue was CA$462.2 million in 2022.

Alcohol accounted for almost two-thirds of SNDL’s gross revenue.

SNDL’s cannabis store gross revenue was CA$205.6 million in 2022, compared with CA$16.1 million the previous year.

The company said the material drivers of the year-over-year increase were last year’s acquisition of Edmonton-based adult-use marijuana store chain Nova and increased sales at its Value Buds stores.

Gross revenue from the “cannabis operations” segment, which includes production, was CA$61.9 million in 2022, compared to CA$51.2 million in 2021, a 21% increase year-over-year.

SNDL currently operates 169 private liquor stores, which it says is the largest private sector liquor store network in the country.

The company had CA$207 million in unrestricted cash as of April 19, 2023.

Shares of SNDL trade on the Nasdaq; Nova trades as NOVC on the Toronto Stock Exchange.

Source: https://mjbizdaily.com/cannabis-alcohol-firm-sndl-loses-ca372-4-million-in-2022/