SNDL stock rises 16% as Q2 revenue soars on back of Liquor, Cannabis retail sales

SNDL (NASDAQ:SNDL) stock rose ~16% on Aug. 15 after Q2 revenue grew, driven by sale from Liquor and Cannabis retail segments.

The company reported Q2 results Aug. 12 post market, wherein revenue increased +2,344% Y/Y to C$223.7M.

Gross revenue for Liquor Retail sales was C$148.6M in Q2. The company said due to the Alcanna acquisition, it was now Canada’s largest private sector liquor retailer, operating 170 locations, mainly in Alberta, under its three retail banners: Wine and Beyond, Liquor Depot and Ace Liquor.

Revenue from the Cannabis Retail segment rose +746% Q/Q to C$63.5M. SNDL said Value Buds were the main driver of the growth with sales of C$56.3M.

SNDL noted that its retail network expanded after the acquisition of interest in Nova Cannabis via the Alcanna deal.

Revenue from Cannabis Cultivation and Production segment increased +21% Y/Y to C$15.4M.

Meanwhile, Investments segment recorded a loss of C$35.1M, compared to C$2.4M in Q2 2021. The company said the decrease was mainly due to accounting fair value adjustments reflecting an increase in the assumed risk-free rate and deterioration in overall cannabis credit market conditions.

Q2 net loss widened to -C$74M, compared to -C$52.3M in the prior year period.

Adjusted EBITDA was a loss of -C$25.9M, compared to -C$0.2M in Q2 2021, mainly due to the Sunstream equity pickup of a -C$38M loss.

As of June 30, the company had C$900M in cash, marketable securities, and long-term investments and no outstanding debt.