Shares of SNDL fell Tuesday after the company reported headwinds in both its liquor and cannabis segments which dragged on revenue, leading to a loss in the second quarter.
Shares traded 7.4% lower at $1.25.
The New York-listed Canadian company reported a 3.7% decline in revenue to 235.8 million Canadian dollars ($167 million).
Cannabis retail revenue fell 1.4% to C$83.2 million, while revenue from cannabis operations declined more than 10% to C$32.2 million. Liquor retail was down 5.1% to C$134.7 million.
The lower revenue dragged on earnings. SNDL swung to loss of C$7.82 million, from a profit of C$2.89 million a year earlier.
Chief Executive Zach George said second-quarter results reflect the impact of continued market softness across our core operating segments, as well as temporary production inefficiencies.
"While these near-term factors pressured revenue and operating income, we remain focused on disciplined execution, cost optimization, and the strategic initiatives that we believe will strengthen SNDL's competitive position over time," George said.
These include profit-enhancement initiatives, operational efficiency improvements across the organization, and continued investment in high-performing retail banners.
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