Earnings ·
SNDL posts Q3 record $20M free cash flow and $5.2M adj operating income despite $52M impairment
SNDLSNDL Inc.
SNDL reported third-quarter net revenue of C$238 million, a 2.5% decline year-over-year, driven by weakness in its Cannabis Operations segment which recorded a C$52 million non-cash goodwill impairment charge. Adjusted operating income turned positive to C$5.2 million, an improvement of C$14.8 million compared to the prior year period, as Liquor and Cannabis Retail segments delivered record gross margins. The company generated a record quarterly free cash flow of C$20 million, supported by strategic investments in its U.S. portfolio and share repurchases. SNDL is initiating a strategic review of its underperforming Cannabis Operations segment and expects cost reduction benefits to contribute to results in the fourth quarter. SNDL Inc. operates as one of Canada's largest vertically integrated cannabis companies and private-sector liquor retailers.