The shares of cannabis player Sundial Growers (NASDAQ:SNDL) are on the rise in the pre-market Thursday after the company reported better than expected financials for 4Q 2021. Its Canadian rivals, Tilray (TLRY) and Canopy Growth (CGC), are also trading higher in solidarity.
Net revenue for the quarter rose ~63% YoY to C$22.7M compared to Bloomberg consensus of C$17M. Net revenue for the cultivation and production of cannabis jumped ~56% to C$12.8M, while net revenue for cannabis retail stood at C$10M.
Gross margin loss improved to C$2.5M during the quarter from C$4.7M in the prior year, while net loss from continuing operations fell ~15% YoY to C$54.8M.
Notably, adj. EBITDA at C$18.4M exceeded Street forecasts of C$5.92M compared to an adj. EBITDA loss of C$5.6M in the prior year period.
However, net revenue for the full year slipped ~8% YoY to C$56.1M, while gross margin loss improved to C$7.0M compared to C$49.9M in 2020. Net loss from continuing operations climbed ~12% YoY to C$230.2M with C$182.3M of non-cash items that included C$60M of asset impairment.
"2021 was a transformational year for Sundial. We increased the sustainability of our business model, establishing a strong balance sheet, positive Adjusted EBITDA results, and significant improvements in gross margin," Chief Executive Zach George remarked.
A conference call on earnings is scheduled for today at 10:30 a.m. EDT.