Sundial Delivers Quarterly Net Revenue of $33.5 Million Representing 74% Sequential Growth
Third Quarter Financial and Operating Results Set the Stage for 2020 Growth
CALGARY, Nov. 13, 2019 /PRNewswire/ – Sundial Growers Inc. (Nasdaq: SNDL) (“Sundial” or the “Company”) reported its financial and operating results for the third quarter ended September 30, 2019, as well as provided an update on its business.
The increasing scale of our Canadian and new UK operations enabled us to significantly grow production and sales this quarter.
Torsten Kuenzlen, Chief Executive Officer of Sundial
Our focused and phased growth strategy remains on track – scaling and optimizing our Canadian business to gain profitable market share by deepening our branded product portfolio, expanding our geographic footprint and leveraging our differentiated CPG approach in the rapidly growing global cannabis industry.
“Our financial and operating results this quarter are the outcome of executing against the clear goals we set for our business this year,” continued Mr. Kuenzlen. “Increasing our harvests from 1,896 kilograms in the first quarter of 2019 to approximately 11,700 kilograms of premium cannabis in our third quarter, demonstrates our ability to rapidly scale our operation to the level of other leading Canadian LPs. Importantly, we step-changed production quantities while improving quality and growing a much larger variety of desirable premium cannabis strains. At the same time, we advanced operationally for effectiveness and efficiency and carefully managed our inventory levels. Production expansion went hand-in-hand with geographic expansion, as we increased coverage to additional Provincial boards and stores across Canada. This progress, combined with our focus on building out our brand story, not only delivered strong results this quarter, but also sets the stage for the profitable expansion of our business in 2020 and beyond.”
All information in this press release is in Canadian dollars unless otherwise indicated
THIRD QUARTER HIGHLIGHTS
Delivered net revenue of $33.5 million, a 74% sequential quarterly increase, driven by a 41% growth in Canadian sales and the expansion into the UK, with the acquisition of Bridge Farm Group (“Bridge Farm”). Sold 7,944 kilograms of cannabis in Canada, increasing almost 70% from the second quarter of 2019. Average selling price per gram (“ASP”) for branded cannabis products for the quarter was $6.34, broadly consistent with ASP in the second quarter of $6.53. ASP for unbranded flower sales was $4.03, declining slightly from $4.46 in the second quarter.