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A Reddit favorite cannabis company Sundial Growers Inc. (NASDAQ:SNDL) posted its first-quarter earnings on Wednesday with a net loss of CA$134.4 million ($111.40 million), compared to a net loss of CA$64.1 million in the previous quarter.
The Calgary, Alberta-headquartered company noted that the net loss could be attributed to CA$130 million of non-cash amounts indicating the effect of share price volatility on the valuation of derivative warrants.
Quarterly earnings from operations amounted to CA$1.7 million, versus a loss from operations of CA$32.7 million in the last quarter of 2020.
For the first time since its inception, Sundial achieved positive adjusted EBITDA hitting CA$3.3 million, which compares to an adjusted EBITDA loss of CA$5.6 million in the previous quarter.
The company's gross cannabis revenue for the period reached CA$11.7 million, down by 30% from the fourth quarter.
At the end of the reporting quarter, on March 31st, Sundial held CA$969.5 million of cash, securities and long-term investment on hand. The amount climbed to CA$1.08 billion until May 7th, and the company reported no outstanding debt.
"We are pleased to announce Sundial's first-ever quarter with positive earnings from operations and adjusted EBITDA," Zach George, CEO of Sundial stated. "This result reflects our continued efforts to build a platform targeting attractive capital deployment opportunities while we focus on the continued improvement of our cultivation practices in an immature and rapidly changing industry.”
George added that there is still lots to do.
“We have made progress in improving our cultivation outcomes and we continue to focus on best practices to deliver great results in potency, yield and terpenes, but our work is far from complete. Our brand promise to consumers is fundamental to our strategy, and we refuse to compromise on product quality and consumer expectations. Operational improvements and capital deployment remain top priorities,” George concluded.
After the quarter ended, the Canadian cannabis company confirmed an agreement to buy Inner Spirit Holdings Ltd. (CSE:ISH) (OTCQB: INSHF) ("Inner Spirit") and Spiritleaf retail cannabis network in a CA$131 cash and stock deal.
Sundial’s shares were trading 1.53% higher at 75 cents per share at the time of writing.
Photo by Shane Rounce on Unsplash
