SNDL, Inc. (NASDAQ:SNDL) Q2 2023 Earnings Conference Call August 14, 2023 10:30 AM ET
Company Participants
Zach George - Chief Executive Officer
Alberto Paredero - Chief Financial Officer
Tank Vander - President, Liquor Retail
Tyler Robson - President of Cannabis
Conference Call Participants
Frederico Gomes - ATB Capital Markets
Andrew Partheniou - Stifel, Nicolaus & Company
Pablo Zuanic - Zuanic and Associates
Operator
Good morning. And welcome to SNDL's Second Quarter 2023 Financial Results Conference Call. This morning, SNDL issued a press release announcing their financial results for the second quarter ended on June 30th, 2023. This press release is available on the company's website at sndl.com and filed on EDGAR and SEDAR as well. The webcast replay of the conference call will also be available on sndlgroup.com website. SNDL has also posted a supplemental investor presentation on its website.
Presenting on this morning's call, we have Zach George, Chief Executive Officer; Alberto Paredero, Chief Financial Officer; Tank Vander, President, Liquor Retail; and Tyler Robson, President Cannabis.
Before we start, I would like to remind investors that certain matters discussed in today's conference call or answers that may be given to questions could constitute forward-looking statements. Actual results could differ materially from those anticipated. Risk factors that could affect results are detailed in the company's financial reports and other public filings that are made available on SEDAR and EDGAR.
Additionally, all financial figures mentioned are in Canadian dollars unless otherwise indicated. We will now make prepared remarks, and then we'll move on to analyst questions.
I would now like to turn the call over to Zach George.
Zach George
Hi, everyone. And thank you for joining us on our second quarter 2023 earnings call. SNDL’s growth over the past two years is nothing short of incredible. Our journey from less than $10 million in net revenue and negative gross margin in Q2 2021 to a potential $1 billion in annual revenue with continued gross margin growth in 2023, serves as a testament to our commitment to becoming a leader in Canadian regulated products. We have achieved significant milestones and are witnessing the tangible results of our diversification strategy. We achieved an all-time high for net revenue for the second quarter of 2023 with $244.5 million, driven by our strategic initiatives and operational improvements. Our focused efforts to enhance gross margin are yielding significant results with record gross margin of $52 million, representing a 20% year-over-year increase. Having navigated a virtual zero profit environment in Canadian cannabis and even flirting with insolvency in 2020, we now believe that SNDL has the requisite scale and platform optionality to create shareholder value. While the hard work of our teams is beginning to yield improved operating results, we still have significant work ahead. We are internally focused on driving greater efficiencies and taking advantage of our competitive position in Canada with both upstream and downstream regulated product capabilities.