CALGARY, AB, Aug. 12, 2021 /CNW/ - Sundial Growers Inc.
(NASDAQ: SNDL) ("Sundial" or the "Company") reported its financial
and operational results for the second quarter ended June 30, 2021. All financial information in this
press release is reported in millions of Canadian dollars and
represents results from continuing operations, unless otherwise
indicated.
The Company plans to hold a conference call and webcast at
8:30 a.m. MT (10:30 a.m. ET) on Friday,
August 13, 2021. Please see the dial-in details within the
release, as well as additional details on Sundial's website at
www.sndlgroup.com.
SECOND QUARTER 2021 OPERATIONAL AND INVESTMENT
HIGHLIGHTS
- Net revenue for the Company's cannabis segment of $9.2 million. Investment and fee revenue of
$5.7 million and Sundial's share of
profit of equity accounted investees of $3.7
million for total net revenue and equity pickup of
$18.6 million for the quarter.
- Gross cannabis revenue of $12.7
million, an increase of 8% compared to the previous
quarter.
- Net loss of $52.3 million for the
second quarter of 2021 compared to $60.4
million in the second quarter of the prior year. Excluding a
non-cash provision for impairment on the Olds facility of
$60.0 million, net income would have
been $7.7 million for the 2021 second
quarter.
- Adjusted EBITDA loss of $0.2
million for the second quarter of 2021, compared to an
adjusted EBITDA loss of $3.9 million
in the second quarter of 2020.
- Gross margin loss and gross margin before fair value
adjustments loss from cannabis operations of $2.0 million and $0.4
million, respectively, compared to losses of $3.3 million and $1.6
million, respectively, for the previous quarter.
- $1.3 billion of cash, marketable
securities and long-term investments at June
30, 2021 and $1.2 billion at
August 9, 2021, with no outstanding
debt.
- Fair market value of investments at June
30, 2021 was $354.5 million in
cannabis-related credit facilities and marketable securities.
Cannabis-related credit facilities of $253.0
million at second quarter end generated interest and fee
income of $7.1 million for the
quarter compared to $2.8 million in
the previous quarter.
- ATM net proceeds for the second quarter of $327.4 million at an average price of
$1.30 per share. The Company's ATM
facility has been inactive for 49 days prior to this news
release.
- Subsequent to the quarter end, closed the acquisition of Inner
Spirit Holdings Ltd. ("Inner Spirit") and its Spiritleaf retail
cannabis store network ("Spiritleaf"), establishing Sundial as one
of Canada's largest vertically
integrated cannabis companies.
"Following Sundial's restructuring in 2020, we have been able to
rapidly reshape the business model to focus on a two-pillar
strategy that we believe will position our shareholders for future
success," said Zach George, Chief
Executive Officer of Sundial. "The first pillar is comprised of our
core cannabis operations which are now vertically integrated with
the acquisition of the Spiritleaf retail network. Our upstream
cultivation results within our indoor modular facility continue to
improve amidst the intentional reduction of activity and we are
excited about targeted innovation that we plan to introduce later
this year. We are focused not only on the challenging and
dysfunctional Canadian industry landscape today but are mapping the
characteristics of a dominant and stable business model in a
healthier environment that we expect within three years, following
necessary regulatory reform and industry consolidation. The second
pillar is our investment operations where most of our capital
exposure is committed to our joint venture, SunStream Bancorp. The
SunStream Bancorp team is focused on deploying capital within the
cannabis sector on an attractive risk-adjusted basis and is
exploring broader opportunities within financial services. Sundial
will benefit from a growing, predictable interest income stream as
this capital is deployed and the resulting cash flow has materially
buffered our pre-profit core cannabis operations to date. We
have also made a small number of select equity investments in
businesses that we believe can enhance our upstream and downstream
capabilities.
"Our second quarter performance continued to be impacted by the
liquidation of discounted inventory and our refusal to push
sub-optimal product into the market. We have undertaken a
significant retrenchment in our cultivation activities, which has
included changes to our cultivation processes as well as workforce
and other cost reductions. We have seen continuous improvement in
our cultivation outcomes as we remain focused on best practices to
deliver strong results in potency, yield and terpenes. In the last
two months of the quarter, we experienced the highest successive
average potency at harvest since operations began at Olds."
SECOND QUARTER 2021 KEY FINANCIAL METRICS
($000s)
|
Cannabis
|
Investments
|
Corporate
|
Total
|
As at
June 30, 2021
|
|
|
|
|
|
|
|
|
Total
assets
|
|
274,091
|
|
1,134,189
|
|
2,998
|
|
1,411,278
|
Six months ended
June 30, 2021
|
|
|
|
|
|
|
|
|
Net
revenue
|
|
19,042
|
|
21,455
|
|
—
|
|
40,497
|
Gross
margin
|
|
(6,273)
|
|
21,455
|
|
—
|
|
15,182
|
Share of profit of
equity-accounted investees
|
|
—
|
|
3,724
|
|
—
|
|
3,724
|
Depreciation and
amortization
|
|
1,782
|
|
—
|
|
207
|
|
1,989
|
Earnings (loss)
before tax
|
|
(84,623)
|
|
23,351
|
|
(125,460)
|
|
(186,732)
|
Three months ended
June 30, 2021
|
|
|
|
|
|
|
|
|
Net
revenue
|
|
9,151
|
|
5,706
|
|
—
|
|
14,857
|
Gross
margin
|
|
(2,821)
|
|
5,706
|
|
—
|
|
2,885
|
Share of profit of
equity-accounted investees
|
|
—
|
|
3,724
|
|
—
|
|
3,724
|
Depreciation and
amortization
|
|
828
|
|
—
|
|
103
|
|
931
|
Earnings (loss)
before tax
|
|
(75,451)
|
|
9,051
|
|
14,113
|
|
(52,287)
|
- Asset value per share at June 30,
2021, including cash, loans, marketable securities and the
Olds facility at net book value was approximately $1.34 billion or $0.66 per share.
- Subsequent to quarter end, Sundial issued an additional 26.9
million shares related to the Spiritleaf acquisition and settlement
of related Spiritleaf debt.
- As of August 9, 2021, the Company
had an unrestricted cash balance of approximately $760 million and total common shares outstanding
of 2.06 billion.
INNER SPIRIT ACQUISITION
Sundial completed its acquisition of Inner Spirit and the
Spiritleaf retail network on July 20,
2021. Adding Canada's
largest cannabis retail store network will enable Sundial to reach
consumers through an entirely new channel, generate a deeper
understanding of consumer buying trends, and provide depth of data
to enhance decision making around product and distribution
strategies. In less than three years, Spiritleaf has sourced, built
and opened more than 100 franchised and corporate-owned stores
across Canada in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and Newfoundland and Labrador. Spiritleaf served 2.3 million guests
in 2020 and currently has more than 320,000 members in its
Collective customer benefits program. System-wide retail
sales1 through Spiritleaf stores reached
$124 million on a trailing 12-month
basis to March 31, 2021, the last
reported period prior to acquisition. In July 2021, the retail network achieved its
highest ever one-day and monthly sales since inception. Through the
acquisition of a retail segment, Sundial now has direct access to
more comprehensive customer data and expects revenue increases to
be generated by the integration of our distribution channels
commencing in the third quarter of 2021.
___________________________
|
1
System-wide retail sales and Adjusted EBITDA are non-IFRS financial
measures. For more details, see the "Non-IFRS Financial Measures"
section below.
|
SECOND QUARTER 2021 RESULTS BY SEGMENT
The first half of 2021 was a transitional period for Sundial,
and the Company has now structured its business into two operating
segments: one being Cannabis operations and the other being
Investment operations.
CANNABIS OPERATIONS SEGMENT RESULTS
While the first quarter of 2021 was challenged by industry
dynamics and continued price compression, Sundial's ability to
consistently deliver high-quality inhalables continues to be a key
component of the Company's strategy. Net cannabis revenue declines
in the second quarter were the result of continued growth of the
discount segment and lack of available product to meet consumer
needs. Sundial's commitment to cultivation excellence remains a top
priority for its cannabis operations.
- Sundial's ongoing investments in innovation and cultivation
practices yielded the Company's strongest results in May and June
of 2021, with an average THC potency greater than 20%. These
products will be available to consumers in Q3 2021.
- The Company continues to invest in its evolving library of
strains designed to meet consumer preferences and has entered the
commercial flowering stage of 13 new cultivars in the second
quarter of 2021, some of which are exclusive to Sundial. The
preliminary outcome from these new strains provided results
averaging higher than 22% THC. These strains are expected to be
harvested in Q3 2021 and released in select provinces by year
end.
- The Company is focused on its most profitable and higher margin
SKUs, while simplifying its supply chain and rationalizing SKUs
across all brands and formats to better align with Sundial's brand
promises. Through a comprehensive review of Sundial's portfolio,
the decision was taken by management to rationalize unproductive
SKUs to drive improvements to profitability. Sundial had 100 SKUs
at the beginning of 2020 and now producing less than 35 SKUs in
line with the proposed SKU rationalization plans.
- Sundial is focusing on meeting consistent results on its four
core strains that have proven to meet consumer demands. In the
second quarter of 2021, Sundial launched three new Palmetto strains
and shipped approximately 9,300 cases across the country. The
initial consumer feedback on all three strains has been
positive.
- During the second quarter of 2021, Sundial also launched two
concentrates products in Quebec –
a sativa hash and an indica hash.
- Subsequent to the second quarter, Sundial has begun final
packaging and is expected to launch a 28g LA Kush Cake format under
the Top Leaf brand in select provinces.
GROSS MARGIN BEFORE FAIR VALUE ADJUSTMENTS
Adjusted
gross margin before inventory impairment and fair value adjustments
for the three months ended June 30,
2021 was negative $0.4 million
compared to negative $1.6 million for
the previous quarter as a result of Sundial's ongoing focus on cost
optimization and offering the most competitive and profitable
strains and brands to its customers against the backdrop of
industry wide price compression and higher operating costs at our
premium facility.
NET REVENUE FROM CANNABIS OPERATIONS
Net revenue from
branded cannabis products increased in the second quarter to
$7.3 from $7.2
million in the previous quarter despite provincial boards
reducing inventory levels, retail market conditions and continued
price compression across the industry. These market dynamics
impacted all of Sundial's formats and brands in the second quarter
of 2021. Revenue from licensed producer sales was $1.9 million in the second quarter compared to
$2.7 million in the previous
quarter.
GROSS SELLING PRICE
Average gross selling price per
gram equivalent of branded products, net of provisions, was
$3.19 per gram in the second quarter
of 2021, compared to $3.15 per gram
in the prior quarter.
REVENUE BY FORMATS
In the second quarter and first
half of 2021 gross revenue from Sundial's formats was:
|
Three months
ended
June 30
|
Six months
ended
June 30
|
($000s)
|
2021
|
2020
|
2021
|
2020
|
Revenue from dried
flower
|
|
9,774
|
|
16,090
|
|
19,490
|
|
27,814
|
Revenue from
vapes
|
|
1,284
|
|
6,259
|
|
2,697
|
|
10,608
|
Revenue from
oil
|
|
1,410
|
|
1,992
|
|
1,591
|
|
2,509
|
Revenue from edibles
and concentrates
|
|
271
|
|
—
|
|
709
|
|
—
|
Gross
revenue
|
|
12,739
|
|
24,341
|
|
24,487
|
|
40,931
|
SALES, MARKETING AND GENERAL AND ADMINISTRATIVE
EXPENSES
SMG&A costs increased by 42% from $8.0 million to $11.4
million in the second quarter of 2021 when compared to the
prior quarter. The increase was primarily due to mailing and
distribution costs related to conducting our AGM for approximately
2.4 million individual Sundial shareholders.
NET LOSS
Net loss for the three months ended
June 30, 2021 was $52.3 million compared to a net loss of
$134.4 million in the previous
quarter. Net earnings in the second quarter of 2021 were negatively
impacted by a $60.0 million long
lived asset impairment charge on the Olds facility. Excluding this
non-cash impairment provision, Sundial would have had net income of
$7.7 million for the quarter.
Net loss for the six months ended June
30, 2021 was $186.7 million
compared to a net loss of $104.4
million for the six months ended June 30, 2020 largely
attributable to non-cash charges for changes in value of derivative
warrants and long lived asset impairment in 2021.
ADJUSTED EBITDA
Adjusted EBITDA from continuing
operations was a loss of $0.2 million
for the three months ended June 30,
2021, compared to earnings of $3.3
million in the prior quarter. The decrease in adjusted
EBITDA was primarily due to changes in fair value of marketable
securities, increased SMG&A associated with the AGM and lower
average sales prices, offset by decreased cost of sales per gram
sold.
Adjusted EBITDA from continuing operations was $3.1 million for the six months ended
June 30, 2021 compared to a loss of $15.5 million for the six months ended
June 30, 2020. The increase was due to the following:
- 2021 additions of investment revenue, interest and fee revenue
and share of profit of equity-accounted investees.
- Decrease in cost of sales due to decreases in gram equivalents
sold and per gram costs.
- Decrease in general and administrative expenses due to lower
consulting fees and office and general.
- The increase was partially offset by:
- A decrease in net revenue due to decreases in kilogram
equivalents sold and sales prices.
INVESTMENT OPERATIONS SEGMENT RESULTS
Sundial's investment income has been classified as income from
operations as Sundial intends to continue to deploy significant
capital targeting a portfolio of asymmetrically enhanced
risk-return opportunities in the cannabis industry to provide
exposure to a portfolio of attractive debt, equity and hybrid
investments.
- During the first half of 2021, Sundial issued 1.11 billion
common shares pursuant to at-the-market equity programs, registered
direct offerings, and warrant exercises for total cash proceeds of
$1.18 billion.
- Through the end of the second quarter, the Company had deployed
a portion of the capital raised into several cannabis-related
investments totaling $351.5 million,
including $187.6 million to the
SunStream joint venture. These investments generated $9.4 million in investment revenue in the second
quarter, including interest, fees and realized and unrealized gains
on marketable securities.
- In the second quarter, the Company's portfolio of
credit-related investments generated an annualized rate of return
of 13.0%. At August 11, 2021, the
Company remained debt free.
REVENUE FROM INVESTMENT OPERATIONS
Revenue from
investment operations in the second quarter of 2021 was
$5.7 million.
|
Three months
ended
June 30
|
Six months
ended
June 30
|
($000s)
|
2021
|
2020
|
2021
|
2020
|
Interest and fee
revenue
|
|
|
|
|
|
|
|
|
Interest revenue from
investments at amortized cost
|
|
328
|
|
—
|
|
441
|
|
—
|
Interest and fee
revenue
|
|
2,100
|
|
—
|
|
4,282
|
|
—
|
Interest revenue from
cash
|
|
916
|
|
—
|
|
1,470
|
|
—
|
|
|
3,344
|
|
—
|
|
6,193
|
|
—
|
Investment
revenue
|
|
|
|
|
|
|
|
|
Realized
gains
|
|
4,211
|
|
—
|
|
12,230
|
|
—
|
Unrealized gains
(losses)
|
|
(1,849)
|
|
—
|
|
3,032
|
|
—
|
|
|
2,362
|
|
—
|
|
15,262
|
|
—
|
Revenue from
investment operations
|
|
5,706
|
|
—
|
|
21,455
|
|
—
|
Share of profit of
equity-accounted investees
|
|
3,724
|
|
—
|
|
3,724
|
|
—
|
Total investment
operations
|
|
9,430
|
|
—
|
|
25,179
|
|
—
|
STRATEGIC AND ORGANIZATIONAL UPDATE
Sundial remains focused on building long-term shareholder value
through the accretive deployment of cash resources and on
sustainable profitability based on its streamlined and right-sized
operating structure, and its enhanced offering of high-quality
brands.
CANNABIS OPERATIONS
- Sundial continues to focus on the development of inhalable
formats through new and unique strains, differentiated product
formats and improved efficiencies in manufacturing methods.
Sundial's balance sheet strength allows the Company to position
itself for the normalization of market conditions that is expected
to evolve over the next few years, without pursuing short term
market share and unsustainable margins at all cost.
- In the second quarter of 2021, the Company continued to focus
on cost control and streamlining all its operations from
cultivation, to supply, to sales to achieve the efficiencies of
vertical integration.
- Sundial has well defined expansion plans to open additional
Spiritleaf stores in the second half of 2021 and expects to
maintain its current sales performance trajectory. Six Spiritleaf
stores have been opened in the current quarterly period, including
the 100th Spiritleaf store announced in Ottawa, ON on July 9,
2021.
- Sundial is implementing a Spiritleaf Franchisee Advisory
Council to engage Spiritleaf franchisees and to obtain feedback and
collaboration on strategic initiatives to drive the continued
growth and success of the Spiritleaf banner.
INVESTMENT OPERATIONS
- On July 7, 2021, the Company
announced that it had increased its commitment to SunStream
Opportunities LP to $538 million from
the previously announced commitment of $188
million, which has been funded.
- Sundial remains focused on providing exposure to the global
cannabis industry that is expected to reach US$47 billion by 2025.
SUNDIAL RECEIVES NASDAQ LETTER REGARDING NON-COMPLIANCE WITH
MINIMUM BID PRICE REQUIREMENT
Sundial was notified on August 9,
2021 by the Listing Qualifications Department of The Nasdaq
Stock Market ("Nasdaq") that the closing bid price of the Company's
common stock for the last 30 consecutive business days from
June 25, 2021 to August 6, 2021 did not meet the minimum bid price
of $1.00 per share (the "Minimum Bid
Requirement"). The notice has no immediate effect on the
trading of the Company's common shares on Nasdaq and the Company
has until February 7, 2022 to regain
compliance with the Minimum Bid Requirement.
Sundial will actively monitor its closing bid price during the
compliance period and intends to take appropriate measures to
remedy the deficiency and regain compliance with the Minimum Bid
Requirement.
COVID-19 UPDATE
The Company continues to monitor daily developments in the
COVID-19 pandemic and actions taken by government authorities. In
accordance with the guidance of provincial and federal health
officials to limit the risk and transmission of
COVID-19, Sundial continues to implement mandatory
self-quarantine policies, travel restrictions, enhanced cleaning
and sanitation processes and frequency, and social distancing
measures. Sundial believes that it can maintain safe
operations with these pandemic-related procedures and protocols in
place. The Company has not experienced a material impact
on its production and processing activities to date related to
COVID-19.
NON-IFRS MEASURES
Certain financial measures in this news release, including
adjusted EBITDA from continuing operations and gross margin before
fair value adjustments, are non-IFRS measures. These terms are not
defined by IFRS and, therefore, may not be comparable to similar
measures provided by other companies. These non-IFRS financial
measures should not be considered in isolation or as an alternative
for measures of performance prepared in accordance with
IFRS.
ADJUSTED EBITDA FROM CONTINUING
OPERATIONS
Adjusted EBITDA from continuing operations
is a non-IFRS measure which the Company uses to evaluate its
operating performance. Adjusted EBITDA from continuing
operations provides information to
investors, analysts and others to aid in
understanding and evaluating the Company's operating results
in a similar manner to its management team. Adjusted
EBITDA from continuing operations is defined as net income
(loss) from continuing operations before finance costs,
depreciation and amortization, accretion expense, income tax
recovery and excluding change in fair value of biological assets,
change in fair value realized through inventory, unrealized foreign
exchange gains or losses, unrealized gains or losses on marketable
securities, change in fair value of derivative warrants,
share-based compensation expense, asset impairment, gain or
loss on disposal of property, plant and equipment and certain
one-time non-operating expenses, as determined by
management.
|
Q2 2021
|
Q1 2021
|
% Change
|
Q2 2020
|
% Change
|
Net loss from
continuing operations
|
|
(52,287)
|
|
(134,445)
|
|
61
|
%
|
|
(32,827)
|
|
-59
|
%
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance
costs
|
|
40
|
|
51
|
|
-22
|
%
|
|
1,002
|
|
-96
|
%
|
Change in estimate of
fair value of derivative warrants
|
|
(19,810)
|
|
129,944
|
|
115
|
%
|
|
(411)
|
|
-4720
|
%
|
Depreciation and
amortization
|
|
931
|
|
1,058
|
|
-12
|
%
|
|
1,277
|
|
-27
|
%
|
Change in fair value
of biological assets
|
|
331
|
|
94
|
|
252
|
%
|
|
1,756
|
|
-81
|
%
|
Change in fair value
realized through inventory
|
|
456
|
|
50
|
|
812
|
%
|
|
6,213
|
|
-93
|
%
|
Unrealized foreign
exchange (gain) loss
|
|
104
|
|
1,905
|
|
-95
|
%
|
|
583
|
|
-82
|
%
|
Unrealized (gain) loss
on marketable securities
|
|
1,849
|
|
(4,881)
|
|
138
|
%
|
|
—
|
|
100
|
%
|
Share-based
compensation
|
|
4,539
|
|
3,456
|
|
31
|
%
|
|
3,152
|
|
44
|
%
|
Asset
impairment
|
|
60,000
|
|
—
|
|
100
|
%
|
|
—
|
|
100
|
%
|
Loss (gain) on
disposition of PP&E
|
|
22
|
|
117
|
|
-81
|
%
|
|
122
|
|
-82
|
%
|
Cost of sales non-cash
component (1)
|
|
1,162
|
|
826
|
|
41
|
%
|
|
1,549
|
|
-25
|
%
|
Inventory
obsolescence
|
|
1,651
|
|
1,754
|
|
-6
|
%
|
|
10,026
|
|
-84
|
%
|
Restructuring
costs
|
|
—
|
|
—
|
|
0
|
%
|
|
2,363
|
|
-100
|
%
|
Transaction costs
(2)
|
|
805
|
|
3,648
|
|
-78
|
%
|
|
1,297
|
|
-38
|
%
|
Government
subsidies
|
|
—
|
|
(2,180)
|
|
-100
|
%
|
|
—
|
|
0
|
%
|
Other
expenses
|
|
2
|
|
1,930
|
|
-100
|
%
|
|
—
|
|
100
|
%
|
Adjusted EBITDA
from continuing operations
|
|
(205)
|
|
3,327
|
|
106
|
%
|
|
(3,898)
|
|
95
|
%
|
(1) Cost of sales
non-cash component is comprised of depreciation expense
|
(2) Transaction costs
relate to financing activities
|
|
YTD 2021
|
YTD 2020
|
% Change
|
Net loss from
continuing operations
|
|
(186,732)
|
|
(70,776)
|
|
-164
|
%
|
Adjustments
|
|
|
|
|
|
|
|
Finance
costs
|
|
91
|
|
6,984
|
|
-99
|
%
|
Change in estimate of
fair value of derivative warrants
|
|
110,134
|
|
(411)
|
|
26897
|
%
|
Depreciation and
amortization
|
|
1,989
|
|
1,934
|
|
3
|
%
|
Change in fair value
of biological assets
|
|
425
|
|
(4,659)
|
|
109
|
%
|
Change in fair value
realized through inventory
|
|
506
|
|
15,905
|
|
-97
|
%
|
Unrealized foreign
exchange (gain) loss
|
|
2,009
|
|
(1,186)
|
|
269
|
%
|
Unrealized (gain) loss
on marketable securities
|
|
(3,032)
|
|
—
|
|
100
|
%
|
Share-based
compensation
|
|
7,995
|
|
3,947
|
|
103
|
%
|
Asset
impairment
|
|
60,000
|
|
5,659
|
|
960
|
%
|
Loss (gain) on
disposition of PP&E
|
|
139
|
|
(488)
|
|
128
|
%
|
Cost of sales non-cash
component (1)
|
|
1,988
|
|
2,329
|
|
-15
|
%
|
Inventory
obsolescence
|
|
3,405
|
|
17,741
|
|
-81
|
%
|
Restructuring
costs
|
|
—
|
|
5,082
|
|
-100
|
%
|
Transaction costs
(2)
|
|
4,453
|
|
2,398
|
|
86
|
%
|
Government
subsidies
|
|
(2,180)
|
|
—
|
|
100
|
%
|
Other
expenses
|
|
1,932
|
|
—
|
|
100
|
%
|
Adjusted EBITDA
from continuing operations
|
|
3,122
|
|
(15,541)
|
|
120
|
%
|
(1) Cost of sales
non-cash component is comprised of depreciation expense
|
(2) Transaction costs
relate to financing activities
|
GROSS MARGIN BEFORE FAIR VALUE ADJUSTMENTS
Gross
margin before fair value adjustments is a non-IFRS measure which
the Company uses to evaluate its operating performance. Gross
margin before fair value adjustments is defined as gross margin
less the non-cash changes in the fair value adjustments on the sale
of inventory and the growth of biological assets. Gross margin
before fair value adjustments is comprised of net revenue less cost
of sales, inventory obsolescence and impairment.
|
Q2 2021
|
Q1 2021
|
% Change
|
Q2 2020
|
% Change
|
Net
revenue
|
|
9,151
|
|
9,891
|
|
-7
|
%
|
|
20,194
|
|
-55
|
%
|
Cost of
sales
|
|
9,534
|
|
11,445
|
|
-17
|
%
|
|
17,336
|
|
-45
|
%
|
Gross margin
before inventory impairment and fair value
adjustments
|
|
(383)
|
|
(1,554)
|
|
75
|
%
|
|
2,858
|
|
113
|
%
|
CONFERENCE CALL
Sundial will host a conference call and webcast at 10:30 a.m.
EDT (8:30 a.m. MDT) on Friday, August 13, 2021. A current
investor presentation will be available on
http://sndlgroup.com/investors.
WEBCAST ACCESS
To access the live webcast of the call,
please visit the following link:
http://services.choruscall.ca/links/sundialgrowers20210813.html
REPLAY
The webcast archive will be available for three months via the
link provided above.
A telephone replay will be available for one month. To access the
replay dial:
Canada/USA Toll Free: 1-800-319-6413 or International
Toll: +1-604-638-9010
When prompted, enter Replay Access Code: 7535#
ABOUT SUNDIAL GROWERS INC.
Sundial is a public company with Common Shares traded on Nasdaq
under the symbol "SNDL". Our business is reported and analyzed
under two operating segments: Cannabis and Investments.
As a licensed producer that crafts small-batch cannabis using
state-of-the-art indoor facilities, our 'craft-at-scale' modular
growing approach, award-winning genetics and experienced growers
set us apart. Sundial's brand portfolio includes Top Leaf, Sundial
Cannabis, Palmetto and Grasslands. Sundial also operates the
Spiritleaf retail banner. Spiritleaf aims to be the most
knowledgeable and trusted source of recreational cannabis by
offering a premium consumer experience and quality curated cannabis
products.
Our investment operations seek to deploy strategic capital
through direct and indirect investments and partnerships throughout
the global cannabis industry.
We are proudly Albertan, headquartered in Calgary, AB, with operations in Olds and Rocky
View County, Alberta, Canada. For
more information on Sundial, please go to www.sndlgroup.com.
Forward-Looking Information Cautionary
Statement
This news release includes statements containing certain
"forward-looking information" within the meaning of applicable
securities law ("forward-looking statements"), including, but not
limited to, statements regarding the Company's cost-cutting
initiatives, the cost savings expected to be achieved, operational
goals, demand for the Company's products, the Company's ability to
achieve profitability, the development of the legal cannabis
market, performance of the Company's investments and the
maintenance of production levels, including during the COVID-19
pandemic. Forward-looking statements are frequently
characterized by words such as "plan", "continue", "expect",
"project", "intend", "believe", "anticipate",
"estimate", "likely", "outlook", "forecast", "may",
"will", "potential", "proposed" and other similar words, or
statements that certain events or conditions "may" or "will" occur.
These statements are only predictions. Various assumptions were
used in drawing the conclusions or making the projections contained
in the forward-looking statements throughout this news release.
Forward-looking statements are based on the opinions and estimates
of management at the date the statements are made and are subject
to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from
those projected in the forward-looking statements. Please see "Item
3D Risk Factors" in the Company's Annual Report on Form
20-F, which was filed with the Securities and Exchange Commission
("SEC") on March 17, 2021, and the
risk factors included in our other SEC filings for a
discussion of the material risk factors that could cause actual
results to differ materially from the forward-looking information.
The Company is under no obligation, and expressly disclaims any
intention or obligation, to update or revise any forward-looking
statements, whether as a result of new information,
future events or otherwise, except as expressly required by
applicable law.
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SOURCE Sundial Growers Inc.