SNDL Inc (SNDL) 2023 Q2 法說會逐字稿

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 [first] quarter ended on June 30, 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 the sndlgroup.com website. SNDL has also posted a supplemental investor presentation on its website.

早上好，歡迎參加 SNDL 2023 年第二季度財務業績電話會議。今天上午，SNDL 發布了一份新聞稿，宣布截至 2023 年 6 月 30 日的第一季度財務業績。該新聞稿可在該公司網站 sndl.com 上獲取，並在 EDGAR 和 SEDAR 上存檔。電話會議的網絡直播重播也將在 sndlgroup.com 網站上提供。 SNDL 還在其網站上發布了補充投資者介紹。

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.

在今天早上的電話會議上，我們有首席執行官扎克·喬治 (Zach George)；阿爾貝托·帕雷德羅，首席財務官； Tank Vander，酒類零售總裁；和大麻公司總裁泰勒·羅布森 (Tyler Robson)。

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.

在開始之前，我想提醒投資者，今天電話會議中討論的某些事項或可能對問題的回答可能構成前瞻性陳述。實際結果可能與預期存在重大差異。可能影響結果的風險因素在公司的財務報告和 SEDAR 和 EDGAR 上提供的其他公開文件中有詳細說明。

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.

此外，除非另有說明，所有提到的財務數據均以加元為單位。我們現在將發表準備好的評論，然後我們將轉向分析師問題。

I would now like to turn the call over to Zach George.

我現在想把電話轉給扎克·喬治。

Hi, everyone, and thank you for joining us on our second quarter 2023 earnings call. SNDL's growth over the past 2 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.

大家好，感謝您參加我們的 2023 年第二季度財報電話會議。 SNDL 在過去兩年中的增長簡直令人難以置信。我們從2021 年第二季度的不到1000 萬美元淨收入和負毛利率，到2023 年年收入可能達到10 億美元且毛利率持續增長，這證明了我們致力於成為加拿大監管產品領導者的承諾。我們已經實現了重要的里程碑，並正在見證我們多元化戰略的切實成果。

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.

在戰略舉措和運營改進的推動下，2023 年第二季度我們的淨收入達到 2.445 億美元，創下歷史新高。我們為提高毛利率所做的集中努力正在取得顯著成果，毛利率達到創紀錄的 5200 萬美元，同比增長 20%。

Having navigated a virtual 0 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.

在經歷了加拿大大麻幾乎零利潤的環境，甚至在 2020 年瀕臨破產後，我們現在相信 SNDL 擁有創造股東價值所需的規模和平台選擇性。雖然我們團隊的辛勤工作已開始帶來更好的運營業績，但我們仍有大量工作要做。我們內部致力於提高效率，並利用我們在加拿大的競爭地位以及上游和下游受監管的產品能力。

We are simplifying operations across all business segments with an unwavering focus on reaching profitability in 2024. The deliberate diversification of our business was a strategic and essential move driven by prevailing market realities. By diversifying our operations, we have fortified our position and reduced exposure to certain risks allowing us to navigate the extreme uncertainty in the cannabis industry more effectively. This intentional approach has been instrumental in positioning SNDL for continued growth and success in an ever-evolving landscape that continues to lay waste to many of our competitors.

我們正在簡化所有業務部門的運營，堅定不移地致力於在 2024 年實現盈利。我們的業務有意多元化是由當前市場現實推動的一項戰略性重要舉措。通過業務多元化，我們鞏固了自己的地位並減少了某些風險，使我們能夠更有效地應對大麻行業的極端不確定性。這種有意的方法有助於 SNDL 在不斷變化的環境中持續發展並取得成功，而這種環境繼續對我們的許多競爭對手造成浪費。

In our Liquor Retail segment, we look forward to expanding our digital footprint by launching an e-commerce platform for our Wine and Beyond banner in the coming weeks. We believe that we can further optimize the profitability of our Liquor Retail segment and are focused on margin accretive opportunities, including the monetization of data.

在我們的酒類零售領域，我們期待在未來幾週內為我們的 Wine and Beyond 橫幅推出電子商務平台，從而擴大我們的數字足跡。我們相信，我們可以進一步優化酒類零售部門的盈利能力，並專注於利潤增長機會，包括數據貨幣化。

While results for the segment last year in 2022 were a function of sales moderation following the emergence of the post-COVID environment where consumers were eager to get out of the house and return to on-premise consumption of alcoholic beverages. In 2023, we are seeing the impact of inflationary headwinds, pushing the consumer back to off-premise consumption, seeking greater value for their dollars.

去年該細分市場 2022 年的業績是新冠疫情后環境出現後銷售放緩的結果，消費者渴望走出家門，回到室內消費酒精飲料。 2023 年，我們將看到通脹逆風的影響，迫使消費者重新進行場外消費，尋求更大的價值。

This dynamic is benefiting our convenience and discount-oriented banners and driving positive same-store sales for our broader liquor retail portfolio. The Canadian consumer faces very unique challenges, which include a residential mortgage market structure that is very different than the U.S. and a COVID-19 pandemic labor market recovery that has largely been driven by public sector and government jobs. Although much of our regulated products business is considered to be recession-resistant, the duration of the current rate environment is certain to add more pressure to consumers, and we are closely monitoring risks and signs of health.

這種動態有利於我們的便利性和折扣導向的橫幅廣告，並推動我們更廣泛的酒類零售產品組合的同店銷售。加拿大消費者面臨著非常獨特的挑戰，其中包括與美國截然不同的住宅抵押貸款市場結構，以及主要由公共部門和政府就業推動的 COVID-19 大流行勞動力市場復甦。儘管我們的大部分受監管產品業務被認為具有抗衰退能力，但當前利率環境的持續時間肯定會給消費者增加更多壓力，我們正在密切監控風險和健康跡象。

In Cannabis Retail, our data licensing program has been instrumental in driving improved profitability and forging stronger supplier relationships. We are now looking to enhance consumer engagement by introducing a new loyalty program further solidifying our market position. In July, we announced an extension of the outside date for the closing of the intended strategic transaction between SNDL and Nova.

在 Cannabis Retail 中，我們的數據許可計劃在提高盈利能力和建立更牢固的供應商關係方面發揮了重要作用。我們現在希望通過推出新的忠誠度計劃來提高消費者參與度，進一步鞏固我們的市場地位。 7 月，我們宣布延長 SNDL 和 Nova 之間預期戰略交易完成的外部日期。

While all other provincial approvals have been received, the continued review by 1 provincial regulator has resulted in a further delay. Unfortunately, we cannot control the timeliness or responsiveness of Canadian regulators. As publicly stated, we anticipate being able to close this transaction on or before August 25, 2023, but this remains subject to the receipt of this last remaining provincial regulatory approval.

雖然所有其他省級批准均已收到，但 1 個省級監管機構的持續審查導致了進一步的延誤。不幸的是，我們無法控制加拿大監管機構的及時性或響應能力。正如公開聲明的那樣，我們預計能夠在 2023 年 8 月 25 日或之前完成此項交易，但這仍需獲得最後一份省級監管部門的批准。

Our goal remains to establish a dominant multi-banner cannabis retailer with a national presence. We continue to explore opportunities for organic growth while considering mergers and acquisitions to further strengthen our position in the market. Nova's Q2 results announced last week included positive earnings per share and free cash flow, a true rarity in Canadian cannabis. This further reinforces our conviction that we can achieve long-term success by focusing on value and convenience.

我們的目標仍然是建立一個在全國范圍內佔據主導地位的多橫幅大麻零售商。我們繼續探索有機增長的機會，同時考慮併購，以進一步加強我們在市場中的地位。 Nova 上周公布的第二季度業績包括正每股收益和自由現金流，這在加拿大大麻行業是真正的罕見。這進一步堅定了我們的信念：通過關注價值和便利性，我們可以取得長期成功。

In our Cannabis operations, we have implemented aggressive cost-cutting measures, streamlined manufacturing operations and reduced our reliance on high-cost cultivation. Throughout this process, we have successfully maintained cannabis sales momentum and are actively exploring B2B and international opportunities, paving the way for future growth. The impressive 80% increase in year-over-year revenue in our cannabis operations segment validates our strategic decision to acquire balance.

在我們的大麻業務中，我們實施了積極的成本削減措施，簡化了製造業務，並減少了對高成本種植的依賴。在此過程中，我們成功保持了大麻銷售勢頭，並積極探索 B2B 和國際機會，為未來的增長鋪平道路。我們的大麻業務部門收入同比增長 80%，令人印象深刻，這驗證了我們實現平衡的戰略決策。

The acquisition has proven instrumental to the growth of our cannabis business by leveraging its manufacturing capabilities, low-cost procurement strategies and capitalizing on Cannabis 2.0 product opportunities. We have also streamlined our investment portfolio by divesting from equity securities and certain credit exposures. At the end of Q2 2023, SNDL held $754 million in unrestricted cash, marketable securities and long-term investments.

事實證明，此次收購通過利用其製造能力、低成本採購策略和利用 Cannabis 2.0 產品機會，對我們大麻業務的增長發揮了重要作用。我們還通過剝離股本證券和某些信用風險來精簡我們的投資組合。截至 2023 年第二季度末，SNDL 持有 7.54 億美元的非限制性現金、有價證券和長期投資。

This value compares to a current market cap of approximately CAD 560 million, and this is before any consideration for the value of our growing operating segments that we believe have the potential to generate more than $1 billion in annual revenue.

這一價值與目前約 5.6 億加元的市值相比，是在考慮我們不斷增長的運營部門的價值之前的，我們認為這些部門有可能產生超過 10 億美元的年收入。

At the end of the second quarter of 2023, SunStream's credit portfolio comprised fixed investments, with a carrying value of approximately $533 million, including Jushi Holdings, SKYMINT Brands, Ascend Wellness Holdings, Parallel, Columbia Care and AFC Gamma.

截至2023年第二季度末，SunStream的信貸投資組合包括固定投資，賬面價值約為5.33億美元，包括Jushi Holdings、SKYMINT Brands、Ascend Wellness Holdings、Parallel、Columbia Care和AFC Gamma。

The AFC Gamma investment was monetized above carrying value in July of 2023. SunStream is actively implementing a stock exchange compliance structure to facilitate participation in U.S. cannabis companies. In connection, SunStream is exploring the restructuring and transfer of certain credit interests in SKYMINT and Parallel to a new U.S. holding entity called SunStream USA.

AFC Gamma 投資於 2023 年 7 月兌現高於賬面價值。SunStream 正在積極實施證券交易所合規結構，以促進參與美國大麻公司。與此相關，SunStream 正在探索重組並將 SKYMINT 和 Parallel 的某些信貸權益轉讓給名為 SunStream USA 的新美國控股實體。

The SunStream USA structure is expected to allow SNDL to participate in SunStream assets while complying with all U.S. and federal state laws. This SunStream USA structure is anticipated to include the issuance of securities upon the equitization of specific credit instruments held by SunStream.

SunStream USA 結構預計將允許 SNDL 參與 SunStream 資產，同時遵守所有美國和聯邦州法律。 SunStream USA 的這一結構預計將包括在 SunStream 持有的特定信貸工具股權化後發行證券。

In turn, [it] would hold nonvoting shares in SunStream U.S.A. with the right to exchange such shares into common shares in the future if certain conditions are met. As such, the SunStream USA structure is expected to allow SNDL to participate in SunStream assets through a revamped capital structure. The proposed SunStream USA structure will be reviewed by NASDAQ as the relevant listing authority for SNDL prior to its execution. SNDL anticipates providing further details on progress with the SKYMINT and Parallel restructuring initiatives in the third quarter of 2023.

反過來，[it] 將持有 SunStream U.S.A. 的無投票權股份，並有權在滿足某些條件的情況下將來將這些股份轉換為普通股。因此，SunStream USA 結構預計將允許 SNDL 通過調整後的資本結構參與 SunStream 資產。擬議的 SunStream USA 結構將在執行前由作為 SNDL 相關上市機構的納斯達克進行審查。 SNDL 預計在 2023 年第三季度提供有關 SKYMINT 和並行重組計劃進展的更多詳細信息。

Looking at our integration initiatives, we have achieved $18.2 million in annualized cost savings since the Valens acquisition in January of 2023, surpassing our original $10 million cost savings target. These savings are largely attributed to SG&A and public company costs, supply chain consolidation and operational efficiencies. With this progress, we are confidently moving towards exceeding $30 million in annualized cost savings by 2024. The second quarter results included several cost items related to our cannabis integration projects. Our work continues as our leaders take necessary actions to ensure a lean and agile organizational structure, positioning SNDL for future success.

從我們的整合計劃來看，自 2023 年 1 月收購 Valens 以來，我們已實現了 1,820 萬美元的年度成本節約，超過了我們最初的 1,000 萬美元的成本節約目標。這些節省主要歸功於銷售管理、管理費用和上市公司成本、供應鏈整合和運營效率。憑藉這一進展，我們有信心在 2024 年之前實現年化成本節省超過 3000 萬美元。第二季度的業績包括與我們的大麻整合項目相關的多項成本項目。我們的工作仍在繼續，我們的領導者將採取必要的行動，以確保精乾而敏捷的組織結構，為 SNDL 未來的成功奠定基礎。

We anticipate that our Canadian retail network will grow at a modest pace while our internal efforts on optimization are already yielding significant tangible results. These results are encouraging as we focus on delivering improved performance in the second half of 2023 and maximizing value for shareholders.

我們預計我們的加拿大零售網絡將以適度的速度增長，而我們內部的優化努力已經產生了顯著的實際成果。這些結果令人鼓舞，因為我們專注於在 2023 年下半年實現更好的業績並為股東實現價值最大化。

Before we dive into our financial results in more depth, I'm excited to introduce you to our new Chief Financial Officer, Alberto Paredero. Alberto brings a wealth of experience and a strong track record in corporate finance with more than 25 years of management experience in the consumer goods and pharmaceutical industries. He has held senior management roles for companies such as Mondelez International, Novartis, Newell Brands and Procter & Gamble, bringing extensive experience in public company reporting, mergers and acquisitions, internal controls and general financial and operational management. We are confident that his expertise and strategic vision will continue to drive our company's growth and success.

在我們更深入地探討我們的財務業績之前，我很高興向您介紹我們的新任首席財務官阿爾貝托·帕雷德羅 (Alberto Paredero)。 Alberto 在消費品和製藥行業擁有超過 25 年的管理經驗，在企業財務方面擁有豐富的經驗和良好的業績記錄。他曾在億滋國際、諾華、Newell Brands 和寶潔等公司擔任高級管理職務，在上市公司報告、併購、內部控制以及一般財務和運營管理方面擁有豐富的經驗。我們相信，他的專業知識和戰略願景將繼續推動我們公司的成長和成功。

I'll now pass the call to Alberto for a review of our Q2 2023 financial results.

我現在將電話轉接給 Alberto，請其審核我們 2023 年第二季度的財務業績。

Thank you, Zach. I'm thrilled to be part of the SNDL team as we see huge potential to drive growth and create shareholder value. The team is passionate and united by a common goal of achieving positive free cash flow in 2024. SNDL is in a strong financial position, which gives us room to plan long-term and seek out opportunities to grow sustainably. I believe we're in a great position to make a big impact in the industry and create lasting value for everybody both.

謝謝你，扎克。我很高興成為 SNDL 團隊的一員，因為我們看到了推動增長和創造股東價值的巨大潛力。該團隊充滿激情，團結一致，共同目標是在 2024 年實現正的自由現金流。SNDL 財務狀況強勁，這使我們有空間進行長期規劃並尋找可持續增長的機會。我相信我們處於有利地位，可以在行業中產生巨大影響，並為每個人創造持久的價值。

Since I joined in July 2023, I'd noticed a few areas, which will enhance our efficiency and ability to achieve long-term profitability. Here are a couple of things we have been focusing on. Firstly, our primary focus will be in simplifying and improving processes that are often manual and fragmented. By doing so, we should be able to work more efficiently and free up time and resources to focus on accelerating our growth. We are determined to strengthen our financial debt while sharpening our capital allocation strategies. This will help us improve both the quality and the speed of decision-making and with that, our ability to create value for our shareholders.

自 2023 年 7 月加入以來，我注意到了一些領域，這些領域將提高我們的效率和實現長期盈利的能力。以下是我們一直關注的幾件事。首先，我們的主要重點是簡化和改進通常是手動且分散的流程。通過這樣做，我們應該能夠更有效地工作，並騰出時間和資源來專注於加速我們的增長。我們決心加強我們的金融債務，同時強化我們的資本配置策略。這將幫助我們提高決策的質量和速度，從而提高我們為股東創造價值的能力。

Now moving on to our Q2 2023 results. I would like to remind you all that amounts discussed today are denominated in Canadian dollars, unless otherwise stated. Please note that certain amounts referred to on this call are non-IFRS measures. For the definitions of these measures, please refer to SNDL's management and discussions analysis [docking]. Let's start by going over our key financials and operational highlights for the second quarter of 2023.

現在來看我們 2023 年第二季度的業績。我想提醒大家，除非另有說明，今天討論的金額均以加元計價。請注意，本次電話會議中提到的某些金額是非國際財務報告準則措施。這些措施的定義請參考SNDL的管理和討論分析【對接】。讓我們首先回顧一下 2023 年第二季度的主要財務和運營亮點。

We achieved a record net revenue of $245 million, which is a 9% increase compared to the same period in 2022. This shows how our strategic plans and operational improvements are paying off, driving both financial and operational improvements. Our gross margin hit an all-time high at $52 million for the quarter. This increase is driven by several factors, mainly our revenue growth, product mix improvements, data fees and productivity improvements. Our adjusted EBITDA reached a positive $2.2 million in the quarter, which is a strong improvement compared to the $26 million losses in the second quarter of 2022. All our operating segments are contributing to this improvement as well as the synergies realized through the company's vertical integration strategies.

我們實現了創紀錄的 2.45 億美元淨收入，與 2022 年同期相比增長了 9%。這表明我們的戰略計劃和運營改進正在取得成效，推動了財務和運營改進。本季度我們的毛利率創歷史新高，達到 5200 萬美元。這一增長是由多種因素推動的，主要是我們的收入增長、產品組合改進、數據費用和生產力提高。本季度我們調整後的EBITDA 達到220 萬美元，與2022 年第二季度2600 萬美元的虧損相比有了很大改善。我們所有的運營部門都為這一改善以及通過公司垂直整合實現的協同效應做出了貢獻策略。

We've been running our operations more efficiently with $8.8 million in cash used in our operating activities. This marks a 51% improvement compared to the same quarter of last year. We have a strong financial position with $754 million in cash, marketable securities and long-term investments. As of August 11, 2023, we have [$202 million] in unrestricted cash. I would also like to note that we haven't raised cash through share offerings since June 2021, which reflects our careful approach to managing our finances. We're also focused on streamlining our investments and capital deployment strategies.

我們的運營活動使用了 880 萬美元現金，從而更加高效地運營。與去年同期相比，這一數字提高了 51%。我們擁有強大的財務狀況，擁有 7.54 億美元的現金、有價證券和長期投資。截至 2023 年 8 月 11 日，我們擁有 [2.02 億美元]不受限制的現金。我還想指出，自 2021 年 6 月以來，我們尚未通過發行股票籌集現金，這反映了我們管理財務的謹慎態度。我們還致力於簡化我們的投資和資本部署策略。

SNDL financial achievements and sensible approach to cash management reflects our dedication to sustainable growth in delivering long-term value to our shareholders. I will let Tank and Tyler provide more details on the Q2 2023 results for the Liquor, Retail and Cannabis Operations segments. But I would like to turn our attention to the results for our Cannabis Retail segment. Net revenue for this segment reached $72 million in the quarter, representing a 13% increase year-over-year and setting a record since SNDL diversified into cannabis retail. We have demonstrated our dedication to continued margin expansion initiatives with gross margin reaching nearly $18 million or 24.7% of sales. a strong 28% increase compared to Q2 2022.

SNDL 的財務成就和明智的現金管理方法反映了我們致力於可持續增長，為股東提供長期價值。我將讓 Tank 和 Tyler 提供有關酒類、零售和大麻業務部門 2023 年第二季度業績的更多詳細信息。但我想將我們的注意力轉向大麻零售部門的業績。該部門本季度的淨收入達到 7200 萬美元，同比增長 13%，創下 SNDL 多元化進軍大麻零售以來的記錄。我們致力於持續擴大利潤率計劃，毛利率達到近 1800 萬美元，佔銷售額的 24.7%。與 2022 年第二季度相比，強勁增長 28%。

In the first half of 2023, SNDL proactively optimized its proprietary data licensing program for the cannabis retail segment. This margin expansion opportunity generated revenue of $2.7 million in this quarter compared to the $1.3 million in Q2 of 2022 or 80% growth compared to Q1 of 2023. Leveraging the volume of Nova's retail location and our access to high-quality analytics, we're in a good position to deliver continued successful outcomes for our partners while driving top line margin growth.

2023年上半年，SNDL積極優化其大麻零售領域的專有數據許可計劃。這一利潤率擴張機會在本季度創造了270 萬美元的收入，而2022 年第二季度為130 萬美元，與2023 年第一季度相比增長了80%。利用Nova 零售點的數量以及我們獲得的高質量分析，我們處於有利地位，可以為我們的合作夥伴提供持續的成功成果，同時推動營收利潤增長。

Finally, looking at our investments and liquidity results in Q2 2023. SNDL invested capital in a portfolio of cannabis-related ventures with a current value of $569 million. Out of this, $532.8 million was invested through the SunStream joint venture. The investment portfolio resulted in a net loss of $1.5 million primarily driven by an investment loss on marketable securities of $3.8 million, more than offsetting our interest revenue.

最後，看看我們 2023 年第二季度的投資和流動性結果。SNDL 對大麻相關企業投資組合進行了投資，當前價值為 5.69 億美元。其中，5.328 億美元是通過 SunStream 合資企業投資的。投資組合導致淨虧損 150 萬美元，主要是由於有價證券投資虧損 380 萬美元，超過了我們的利息收入。

In fact, as part of our efforts to streamline business operations, during the second quarter, SNDL made a strategic decision to divest certain cannabis-related investments, leading to the realization of these losses. We're carefully considering our options for the share repurchase program. We see ourselves as responsible stewards of capital, aiming to make the best decisions for our shareholders and the long-term success of our organization. Our top priority is guiding the company towards profitability while protecting our capital. We will provide further details on the share repurchase program in the coming weeks.

事實上，作為我們精簡業務運營努力的一部分，SNDL 在第二季度做出了剝離某些大麻相關投資的戰略決定，從而實現了這些損失。我們正在仔細考慮股票回購計劃的選擇。我們將自己視為負責任的資本管理者，旨在為我們的股東和我們組織的長期成功做出最佳決策。我們的首要任務是引導公司實現盈利，同時保護我們的資本。我們將在未來幾週內提供有關股票回購計劃的更多細節。

We're deeply committed to regulatory diligence and compliance. Our dedication to pay an excise taxes on time reflects our strong focus on responsible business practices. As of 2023, we have already paid $23.4 million in excise taxes. And since the company's inception, we have paid a total of $67.8 million. Even though excise taxes post challenges in the Cannabis sector, we believe that meeting our financial obligations is essential for responsible business conduct and positive impact in the communities we are part of.

我們堅定地致力於監管盡職和合規性。我們對按時繳納消費稅的承諾反映了我們對負責任的商業行為的強烈關注。截至 2023 年，我們已繳納消費稅 2,340 萬美元。自公司成立以來，我們總共支付了 6780 萬美元。儘管消費稅給大麻行業帶來了挑戰，但我們相信，履行我們的財務義務對於負責任的商業行為和對我們所在社區的積極影響至關重要。

Our steady dedication to cost control, operational excellence and continuous improvement will continue to fuel a lasting and profitable growth for our company and the shareholders. I truly believe that SNDL has what it takes to come out on top, and I'm very excited to be part of this team and contributing to its success.

我們對成本控制、卓越運營和持續改進的堅定奉獻將繼續為我們公司和股東帶來持久和盈利的增長。我堅信 SNDL 具備脫穎而出的能力，我很高興能成為這個團隊的一員並為其成功做出貢獻。

I will now pass the call to Tank to provide an update on the Liquor Retail results.

我現在將致電 Tank，提供酒類零售業績的最新信息。

Good morning, everyone. Thank you for joining today. Q2 2023 has been a positive quarter for SNDL, and I'm pleased to report the significant contributions of liquor retail to record revenue growth and increased gross margin. Through this quarter, our efforts have been focused on driving improvements in margin growth and the results reflect significant strides in achieving our strategic goals.

大家，早安。感謝您今天加入。 2023 年第二季度對 SNDL 來說是一個積極的季度，我很高興地報告酒類零售對創紀錄的收入增長和毛利率上升的重大貢獻。在本季度，我們的努力重點是推動利潤增長的改善，結果反映了我們在實現戰略目標方面取得的重大進展。

SNDL's Liquor Retail segment currently operates 170 locations, predominantly in Alberta, under our 3 retail banners, Wine and Beyond, Liquor Depot and Ace Liquor. SNDL's Liquor banners market share in Alberta was approximately 18% in the second quarter of 2023. In Q2, we opened 1 additional location under the Ace Liquor banner in Calgary, Alberta. Net revenue for liquor retail sales for the 3 banners combined was $152 million for Q2 2023, an increase of 2.1% compared to Q2 of 2022 and 31% from Q1 of 2023. While Wine and Beyond is integral to driving our overall profit growth through its expansive selection and destination shopping approach, our value and convenience banners, Ace Liquor and Liquor Depot continue to be the backbone of our operations, accounting for 76% of this quarter's total revenue.

SNDL 的酒類零售部門目前在 Wine and Beyond、Liquor Depot 和 Ace Liquor 三個零售品牌下運營 170 個地點，主要位於艾伯塔省。 2023 年第二季度，SNDL 在艾伯塔省的酒類品牌市場份額約為 18%。第二季度，我們在艾伯塔省卡爾加里以 Ace Liquor 旗下又開設了 1 家門店。 2023 年第二季度，這 3 個品牌的酒類零售淨收入合計為 1.52 億美元，比 2022 年第二季度增長 2.1%，比 2023 年第一季度增長 31%。雖然 Wine and Beyond 通過其廣泛的選擇和目的地購物方式、我們的價值和便利橫幅、Ace Liquor 和Liquor Depot 仍然是我們業務的支柱，佔本季度總收入的76%。

Our convenience banners are well positioned to capitalize on transactional shoppers, which is a key driver in maintaining our total revenue growth and market share in the competitive liquor retail environment. For our combined liquor banners, the average annualized per store revenue is $3.6 million, which we believe to be well above industry average and emphasizes our diligent focus on tailored retail experiences and expansive best value product selection. Same-store sales increased 1.7% across all liquor banners with Liquor Depot and Ace Liquor seeing 5.6% and 2.8% growth in same-store sales increases, respectively. While total customer spending remains stable, we are seeing an increase in customer count year-over-year with 2.3% increase from the same period in the year prior.

我們的便利橫幅處於有利位置，可以充分利用交易型購物者，這是在競爭激烈的酒類零售環境中維持我們總收入增長和市場份額的關鍵驅動力。對於我們的綜合酒類橫幅，每家商店的平均年收入為 360 萬美元，我們認為這遠高於行業平均水平，並強調我們對定制零售體驗和廣泛的最佳價值產品選擇的不懈關注。所有酒類品牌的同店銷售額增長 1.7%，其中 Liquor Depot 和 Ace Liquor 的同店銷售額增幅分別為 5.6% 和 2.8%。雖然客戶總支出保持穩定，但我們看到客戶數量同比增長，較上年同期增長 2.3%。

Gross margin in Liquor Retail segment was $35.4 million or 23.3% of sales in Q2 2023 compared to $33.5 million or 22.6% of sales in Q2 2022. After quarter-end, we saw a record margin in July at 24.3%. We are exploring various strategies to increase total gross margin growth including inventory controls, price optimization, agile procurement strategies and an increased focus on customer retention and engagement, which we will be able to report more on in the upcoming quarters.

2023 年第二季度酒類零售部門的毛利率為3540 萬美元，佔銷售額的23.3%，而2022 年第二季度為3350 萬美元，佔銷售額的22.6%。季度末後，我們在7 月份看到了創紀錄的利潤率，達到24.3%。我們正在探索各種策略來提高總毛利率增長，包括庫存控制、價格優化、敏捷採購策略以及更加註重客戶保留和參與，我們將在未來幾個季度報告更多相關內容。

Improved inventory and procurement strategies are producing strong preliminary results. While we are focused on expanding margin opportunity, this is not at the expense of our value offerings. Beer and ready-to-drink beverage formats continue to be one of our largest customer drivers and we remain competitive in price to drive velocity in these key categories. Volume continues to be tactically balanced with the margin to ensure our offerings remain competitive amidst the current economic climate and in line with consumer preferences.

改進的庫存和採購策略正在產生強勁的初步成果。雖然我們專注於擴大利潤機會，但這並不以犧牲我們的價值產品為代價。啤酒和即飲飲料仍然是我們最大的客戶驅動因素之一，我們在價格上保持競爭力，以推動這些關鍵類別的發展。銷量和利潤繼續在戰術上保持平衡，以確保我們的產品在當前的經濟環境下保持競爭力並符合消費者的喜好。

Preferred label sales increased 28% compared to the same period in the year prior and 22% compared to Q1 of 2023. We have added additional value offerings in our preferred label line to ensure we are meeting the very needs of our consumers and responding effectively to the current market conditions. As part of our strategic objectives, SNDL aims to deploy key technology platforms and digital experiences to enhance our operations and customer engagement opportunities.

首選標籤銷售額與去年同期相比增長了 28%，與 2023 年第一季度相比增長了 22%。我們在首選標籤系列中增加了額外的價值產品，以確保滿足消費者的需求並有效應對目前的市場狀況。作為我們戰略目標的一部分，SNDL 旨在部署關鍵技術平台和數字體驗，以增強我們的運營和客戶參與機會。

As a result, I'm excited to announce that SNDL will launch an e-commerce platform for Wine and Beyond, which presents significant opportunities to drive credit revenues. It provides the company with a scalable and adaptable platform to expand our market presence, increase customer engagement and capitalize on the growing trend of online shopping for liquor and related products. The launch date is scheduled for third quarter of 2023. Through the second half of the year, we will continue to implement strategies that focus on margin growth and customer reach. We intend to maximize profitability and cash flow through the liquor segment, and I anticipate reporting strong third and fourth quarters.

因此，我很高興地宣布 SNDL 將為 Wine and Beyond 推出一個電子商務平台，這為推動信貸收入提供了重要機會。它為公司提供了一個可擴展且適應性強的平台，以擴大我們的市場份額、提高客戶參與度並利用酒類及相關產品網上購物的不斷增長趨勢。發布日期定於 2023 年第三季度。下半年，我們將繼續實施專注於利潤增長和客戶覆蓋的戰略。我們打算通過酒類部門最大限度地提高盈利能力和現金流，我預計第三季度和第四季度的業績將強勁。

I will now pass the call to Tyler Robson to expand on our Cannabis Operations segment.

我現在將致電泰勒·羅布森 (Tyler Robson)，以擴展我們的大麻運營部門。

Thank you, Tank, and good morning to everyone. Our Cannabis segment has demonstrated strong progress for the fiscal period driven by an enhanced focus on leveraging our vertical integration capabilities and expanding our own retail market share. Throughout the quarter, we have optimized our manufacturing, processing and cultivation activities and introduce new efficiencies in our supply chain to achieve significant cost savings.

謝謝你，坦克，祝大家早上好。由於更加註重利用我們的垂直整合能力和擴大我們自己的零售市場份額，我們的大麻部門在本財年取得了強勁的進展。在整個季度中，我們優化了製造、加工和種植活動，並在供應鏈中引入了新的效率，以實現顯著的成本節約。

SNDL's cannabis platform is critical to our vertical integration strategies. The segment will continue to drive market share growth by increasing our top line revenue, improving costs and gross margin, optimizing our existing and future inventory. Our strategic initiatives in the Cannabis segment are producing strong preliminary results. Our revenue for the quarter was $21 million, an 80% increase compared to Q2 2022 and a 9% increase compared to Q1 2023.

SNDL 的大麻平台對我們的垂直整合戰略至關重要。該部門將通過增加我們的營收、改善成本和毛利率、優化我們現有和未來的庫存，繼續推動市場份額的增長。我們在大麻領域的戰略舉措正在產生強勁的初步成果。我們本季度的收入為 2100 萬美元，比 2022 年第二季度增長 80%，比 2023 年第一季度增長 9%。

Our margin growth continues to show solid signs of improvement. Gross margin was negative $1.2 million for the period compared to negative $4.3 million in Q2 2022 and a negative $9.5 million in Q1 2023. The improved results showcase our focus on strengthening margins through increased product distribution and simplifying the Cannabis segment.

我們的利潤率增長繼續顯示出明顯的改善跡象。該期間毛利率為負120 萬美元，而2022 年第二季度為負430 萬美元，2023 年第一季度為負950 萬美元。業績的改善表明我們致力於通過增加產品分銷和簡化大麻部門來提高利潤率。

In the first half of 2023, SNDL implemented aggressive cost-cutting measures and improved manufacturing productivity. This key initiative involves rightsizing cannabis cultivation in Olds, Alberta, to focus on producing premium products. We have also successfully consolidated most of the manufacturing activities to our Kelowna facilities.

2023 年上半年，SNDL 實施了積極的成本削減措施並提高了製造生產率。這一關鍵舉措涉及調整阿爾伯塔省奧爾茲的大麻種植規模，以專注於生產優質產品。我們還成功地將大部分製造活動整合到我們的基洛納工廠。

Following the transition, the team has been diligently concentrating on increasing both cultivation yield and potency. We are seeing strong initial results as cultivation yields are approaching 100 grams per square foot at our Atholville facility. Additionally, our operation in Olds have achieved a substantial increase of nearly 30% in their cultivation yields compared to the previous quarter.

轉型後，該團隊一直致力於提高栽培產量和效力。我們看到了強勁的初步成果，阿瑟維爾工廠的種植產量接近每平方英尺 100 克。此外，我們在奧爾茲的種植產量較上一季度大幅增長了近 30%。

Following the Valens acquisition, we conducted a thorough evaluation of our portfolio with a focus on higher-margin brands and products. The evaluation was guided by SNDL's vertical integration capabilities enabling us to make a data-driven decision about our product portfolio. This initiative will help to enhance our overall market positioning and product offerings. We have started to make some decisions on the portfolio, and we will see the results in the back half of the year.

收購 Valens 後，我們對我們的產品組合進行了全面評估，重點關注利潤率較高的品牌和產品。該評估以 SNDL 的垂直整合能力為指導，使我們能夠對我們的產品組合做出數據驅動的決策。這一舉措將有助於增強我們的整體市場定位和產品供應。我們已經開始對投資組合做出一些決定，我們將在下半年看到結果。

Market share in owned retail continues to scale through the company's vertical integration strategy. Driving increased owned retail share is a key focus for our company and a meaningful contributor to our overall margin and profit growth. In addition, SNDL partnered with ColdHaus Direct in May of 2023 to manage the company's end market sales and logistics execution for its branded cannabis products.

通過公司的垂直整合戰略，自營零售市場份額不斷擴大。提高自有零售份額是我們公司的重點，也是我們整體利潤率和利潤增長的重要貢獻者。此外，SNDL 於 2023 年 5 月與 ColdHaus Direct 合作，管理該公司品牌大麻產品的終端市場銷售和物流執行。

ColdHaus supports the business with our distribution of non-owned retail across the country by focusing on expanding our innovation listings, driving our core assortment, education and engagement and collecting competitive data and retail insights.

ColdHaus 通過專注於擴大我們的創新清單、推動我們的核心品種、教育和參與以及收集競爭數據和零售見解，通過在全國范圍內分銷非自有零售來支持業務。

Despite the achievements we have seen this quarter, there are still untapped opportunities in certain regions, particularly in British Columbia and Quebec. We are actively exploring strategies to capitalize on these opportunities. We maintained our B2B segment and continue to provide products and services to most major Canadian license producers. We remain confident in our ability to drive revenue growth in this segment by leveraging our production and distribution capabilities.

儘管我們在本季度取得了一些成就，但某些地區仍然存在尚未開發的機會，特別是在不列顛哥倫比亞省和魁北克省。我們正在積極探索利用這些機會的策略。我們保留了 B2B 部門，並繼續向大多數主要的加拿大許可生產商提供產品和服務。我們仍然對利用我們的生產和分銷能力推動該領域收入增長的能力充滿信心。

As noted in Q1 2023, we are exploring growth within the B2B partnerships internationally. We have been investing in process improvements and testing capabilities to meet the high standards of our global partners and have acquired new strengths to better fit their evolving demands.

正如 2023 年第一季度所述，我們正在探索國際 B2B 合作夥伴關係的增長。我們一直在流程改進和測試能力方面進行投資，以滿足全球合作夥伴的高標準，並獲得了新的優勢，以更好地滿足他們不斷變化的需求。

We are excited about the potential for growth in this segment and are committed to delivering high-quality products and deliver long-term mutually beneficial partners. The team's efforts the past few quarters are impressive, but we know there's still a lot of work to be done to achieve profitability in this segment and further solidify our long-term success.

我們對這一領域的增長潛力感到興奮，並致力於提供高質量的產品並建立長期互利的合作夥伴。該團隊在過去幾個季度的努力令人印象深刻，但我們知道，要在該領域實現盈利並進一步鞏固我們的長期成功，還有很多工作要做。

We are simplifying our segment and focusing on fundamentals and innovation and our tactics are aimed at near-term improvements to drive long-term growth and profitability. The heavy lift of moving manufacturing to Kelowna and reducing our reliance on high-cost cultivation did impact some of our results in Q2, but we are confident these decisions will produce strong outcomes in the coming quarters.

我們正在簡化我們的部門，專注於基本面和創新，我們的策略旨在短期改進，以推動長期增長和盈利能力。將製造業轉移到基洛納並減少對高成本種植的依賴確實影響了我們第二季度的一些業績，但我們相信這些決定將在未來幾個季度產生強勁的成果。

We remain agile and hyper-focused on executing further optimizations in the cannabis segment, including margin expansion and continued revenue growth. Our team demonstrates discipline and a sharp emphasis on delivering exceptional customer value. We are focused on building long-lasting industry relationships while keeping the consumer experience top of mind. I look forward to celebrating more wins with the team and delivering long-term shareholder value.

我們保持敏捷並高度專注於大麻領域的進一步優化，包括利潤率擴張和持續收入增長。我們的團隊表現出紀律性，並高度重視提供卓越的客戶價值。我們致力於建立持久的行業關係，同時將消費者體驗放在首位。我期待著與團隊一起慶祝更多的勝利並創造長期的股東價值。

Thank you. I will now pass the call back to Zach for closing remarks.

謝謝。我現在將把電話轉回給扎克，讓他發表結束語。

I am proud of the milestones our team realized this past quarter. While knowing that there is still much work to be done to reach our objective of free cash flow for the 2024 calendar year, we are determined to continue our upward trajectory and remain fully committed to driving profitability, shareholder value, and excellence in all aspects of our operations. I want to thank my colleagues for their relentless efforts on this challenging path and our stakeholders and commercial partners for their patience, trust and support. We look forward to updating you on our progress in the near future. Thank you.

我為我們的團隊在上個季度實現的里程碑感到自豪。儘管我們知道要實現 2024 年自由現金流的目標還有很多工作要做，但我們決心繼續保持向上的勢頭，並繼續完全致力於推動盈利能力、股東價值和各方面的卓越表現。我們的運營。我要感謝我的同事們在這條充滿挑戰的道路上所做的不懈努力，感謝我們的利益相關者和商業夥伴的耐心、信任和支持。我們期待在不久的將來向您通報我們的最新進展。謝謝。

(Operator Instructions) The first question comes from Frederico Gomes with ATB Capital Markets.

（操作員說明）第一個問題來自 ATB Capital Markets 的 Frederico Gomes。

Just my first question, just on your liquor retail segment and the margins there. Just curious, as you work through these initiatives, you saw a good improvement this quarter. You mentioned that you reached record margins in July. So do you expect that to sort of continue through Q3 and Q4? And then on the launch of the e-commerce for Wine and Beyond, what sort of impact would you expect it to have on the margin side as well?

這是我的第一個問題，關於你們的酒類零售部門及其利潤率。只是好奇，當您實施這些舉措時，您會看到本季度取得了很大的進步。您提到您在 7 月份達到了創紀錄的利潤率。那麼您預計這種情況會持續到第三季度和第四季度嗎？然後，當 Wine and Beyond 推出電子商務時，您預計它會對利潤產生什麼樣的影響？

I'll pass the second part of that question to Tank to discuss e-commerce. But we are -- so we're not giving forward guidance, but your deduction is correct. And we are cautiously quite excited about the environment we're in right now, although there are certainly cross winds that we are monitoring closely. So we do expect over the intermediate term to be able to maintain and improve on this margin profile. Tank, do you want to speak a bit about the launch of e-commerce and what could that mean for the business?

我會將這個問題的第二部分轉給 Tank 來討論電子商務。但我們是——所以我們不會提供前瞻性指導，但你的推論是正確的。儘管我們正在密切監測肯定存在側風，但我們對現在所處的環境感到非常興奮。因此，我們確實預計在中期能夠維持並改善這一利潤率狀況。 Tank，您想談談電子商務的推出嗎？這對企業意味著什麼？

We will be launching e-commerce this quarter, and the impact -- like we're in an environment where everything is going to online from -- everything retail is going online, and we are hoping to capitalize on this as we see a huge impact of skip on our retail business, which would translate into definitely better margins and higher volumes on our Wine and Beyond side business.

我們將在本季度推出電子商務，其影響——就像我們處於一個一切都將在線化的環境中——一切零售都將在線化，我們希望利用這一點，因為我們看到了巨大的增長Skip 對我們的零售業務的影響，這肯定會轉化為我們的葡萄酒及其他副業的更好的利潤和更高的銷量。

On your [Canada's] operations, I guess, the EBITDA there continues to be sort of below the other segments. And I know you're working on cost efficiencies. Just curious, just given the environment here in Canada with LPs and being very fragmented still. How much of the profitability in that segment you think is in your control and just relies on cost cutting and how much you would have to see in terms of changes in the macro environment to really -- to reach profitability in that segment?

我猜想，在你們[加拿大]的業務中，EBITDA 仍然低於其他部門。我知道你們正在努力提高成本效率。只是好奇，考慮到加拿大的有限合夥人環境仍然非常分散。您認為該細分市場的盈利能力有多少是在您的控制範圍內並且僅依賴於成本削減，以及您需要在宏觀環境的變化方面看到多少才能真正實現該細分市場的盈利能力？

I'll have Tyler comment a bit more. But as we've said historically, we are not waiting for someone to come save us in cannabis. And we're building a model to focus on high-quality, low-cost production in key product segments. And what you're seeing right now really is reflective of the transition that we've made post the acquisition of Valens, where we've moved and relocated all processing and manufacturing activities to Kelowna.

我會讓泰勒多評論一下。但正如我們歷史上所說，我們並不是在等待有人來拯救我們的大麻。我們正在建立一個模型，專注於關鍵產品領域的高質量、低成本生產。您現在所看到的確實反映了我們在收購 Valens 後所做的轉變，我們已將所有加工和製造活動轉移到基洛納。

So as we had guided to, we always expected Q2 to be quite messy. And you'll see some of that noise in Q3 as well, but we believe that we are radically changing the cost structure to be more competitive in cannabis. Tyler, maybe you can provide some more color on our competitiveness.

因此，正如我們所指導的那樣，我們一直預計第二季度會非常混亂。您也會在第三季度看到一些噪音，但我們相信我們正在從根本上改變成本結構，以便在大麻領域更具競爭力。泰勒，也許你可以提供更多有關我們競爭力的信息。

Yes, happy to. But I think you hit the nail on the head. No one is coming to help, and we fully expect to be able to be profitable in the current landscape of what we're effectively trying to do. And I do think a lot of it is in our own control. At the end of the day, we're all playing in the same environment. But we've done a lot of work and there's still more to do, but I fully expect to be profitable as is yes, but I think that's all I'll say for now.

是的，很高興。但我認為你說中了要害。沒有人來提供幫助，我們完全希望能夠在當前我們正在努力做的事情的情況下實現盈利。我確實認為很多事情都在我們自己的控制之中。歸根結底，我們都在同一個環境中玩耍。但我們已經做了很多工作，還有更多工作要做，但我完全期望能夠盈利，是的，但我想這就是我現在要說的。

And then just last question here. Just on your cash flow goal for 2024, which segment would you say you expect to be the -- maybe the largest contributor to that cash flow goal, which one do you think is going to be more material?

然後是最後一個問題。就您 2024 年的現金流目標而言，您認為哪個部分將成為該現金流目標的最大貢獻者，您認為哪一個部分更為重要？

Sure. I think, Fred, when you look at the historical profile of our various segments, the answer on an operational cash flow basis is quite clear in terms of the potential for liquor to be a very strong contributing segment. But we are focused on strong and positive cash flow from all of our segments in 2024. And when you combine that with leverage from a leaner and more effective shared services structure, what you're seeing is the benefits of both growth and an aggressive approach on costs at the same time, which is very, very difficult to execute, but we're actually managing to do that today.

當然。弗雷德，我認為，當您查看我們各個細分市場的歷史概況時，就酒類成為非常強大的貢獻細分市場的潛力而言，以運營現金流為基礎的答案非常明確。但我們的重點是到2024 年，我們所有部門都將產生強勁且正向的現金流。當您將其與更精簡、更有效的共享服務結構的槓桿作用相結合時，您將看到增長和積極進取的方法所帶來的好處同時考慮成本，這是非常非常難以執行的，但我們今天實際上已經做到了。

The next question comes from Matt Bottomley with Canaccord Genuity.

下一個問題來自 Canaccord Genuity 的 Matt Bottomley。

This is (inaudible) on for Matt Bottomley. I just wanted to touch upon the Cannabis segment margins, just a little more -- in terms of your goal to generate positive free cash flow from all operating segments by 2024. So the cannabis cultivation segment generated negative gross margins this quarter, although showing sequential improvements from the last quarter and understanding about the consolidation of the Olds Alberta facility happened in the first half of the year.

這是（聽不清）Matt Bottomley 的發言。我只是想多談談大麻部門的利潤率，就你們的目標而言，即到2024 年從所有運營部門產生正的自由現金流。因此，大麻種植部門本季度產生了負毛利率，儘管顯示出連續的毛利率與上一季度相比有所改善，並且對奧爾茲阿爾伯塔工廠的整合的了解發生在今年上半年。

I just wanted to ask about if you guys have any additional cost-saving measures that you have in place in order to make this goal achievable by fiscal '24 and what we could expect in terms of margin expansion under this segment going forward for the rest of fiscal '23?

我只是想問一下，你們是否有任何額外的成本節約措施，以便在 24 財年實現這一目標，以及我們對這一細分市場的其餘部分的利潤率擴張有何預期'23 財年？

Sure. I think maybe the best way to answer this is, Tyler, can you just provide a little bit of color on supply chain initiatives and SKU rationalization that is improving the focus of our teams and margin profile for our operations?

當然。我認為也許回答這個問題的最好方法是，Tyler，您能否就供應鏈計劃和 SKU 合理化提供一些信息，以改善我們團隊的重點和我們運營的利潤狀況？

Yes, happy to. So since I joined SNDL in January, we've effectively turned the cultivation facilities on their head. And we're seeing massive improvement in not only potency but yield. And I think with the kind of strategies acting at the fewer, bigger, better with the SKU rationalization or I'll call it, SKU optimization, we can go deeper.

是的，很高興。因此，自從我一月份加入 SNDL 以來，我們有效地改變了種植設施。我們不僅看到效力，而且產量也得到了巨大的改善。我認為，通過採取更少、更大、更好的 SKU 合理化策略，或者我稱之為 SKU 優化，我們可以走得更深入。

So as far as the cultivation segment, I think it's about having the right footprint and then utilizing not only our low-cost biomass procurement, really driving that premium segment out of Olds. So I don't think we're going to give any forward guidance as to what's going to come as far as margins, but we do expect margins to continue to improve as we optimize the entire portfolio. And now with the basically momentum we're getting, I do see light at the end of the tunnel.

因此，就種植領域而言，我認為關鍵在於擁有正確的足跡，然後不僅利用我們的低成本生物質採購，真正推動高端領域擺脫奧爾茲。因此，我認為我們不會就利潤率方面的情況提供任何前瞻性指導，但我們確實預計，隨著我們優化整個投資組合，利潤率將繼續提高。現在，隨著我們獲得的基本動力，我確實看到了隧道盡頭的曙光。

The next question comes from Pablo Zuanic with Zuanic & Associates.

下一個問題來自 Zuanic & Associates 的 Pablo Zuanic。

Congratulations on the plans with SunStream USA. I mean, can I ask 2 questions there? One, when it comes to SKYMINT and Parallel, the way I understand it, based on what you said, is that you're going to equitize your debt holdings, right? So what happens to the other debt holders there? I mean, both companies, I believe, other creditors, I suppose you have seniority, but if you can give some more color there. And then -- and the second question, which is related to this Canopy USA -- Canopy Growth had to backtrack on their plans for the Canopy USA structure to comply with NASDAQ. Why do you think your case would be different and NASDAQ will approve it?

祝賀與 SunStream USA 的計劃。我的意思是，我可以在那裡問兩個問題嗎？一，當談到 SKYMINT 和 Parallel 時，根據您所說的，我的理解是，您將資產化您持有的債務，對嗎？那麼那裡的其他債務持有人會怎樣呢？我的意思是，我相信，兩家公司以及其他債權人，我想你們都有資歷，但如果你們能在那裡提供更多的色彩的話。然後，第二個問題與 Canopy USA 有關，Canopy Growth 不得不放棄其 Canopy USA 結構的計劃，以符合納斯達克的要求。為什麼您認為您的案例會有所不同並且納斯達克會批准它？

Pablo, thank you for the questions. So I just want to be clear about the timing around expected disclosures here with regards to SKYMINT and Parallel. And this is not a punt, this is just a reality of what is certain right now, what is known. They're going through 2 very different processes. And so SKYMINT (inaudible), you're seeing a receivership process, which resulted in an auction which was completed.

巴勃羅，謝謝你的提問。因此，我只想澄清一下有關 SKYMINT 和 Parallel 的預期披露的時間安排。這不是一個賭注，這只是目前確定的、已知的現實。他們正在經歷兩個截然不同的過程。 SKYMINT（聽不清），您看到的是破產管理流程，這導致了拍賣的完成。

But for that transaction to occur, there's a subsequent court date in early September, where ruling is required. And so that transaction has not closed. There is no certainty until that court date. And with Parallel, you've got licenses in multiple states and a much more complicated capital structure, which requires an agreement between stakeholders to get to a resolution in terms of the restructuring, and it's expected to be taken through a foreclosure process.

但要實現該交易，隨後的開庭日期為 9 月初，需要做出裁決。因此該交易尚未結束。在開庭日期之前尚無確定性。有了 Parallel，你就獲得了多個州的許可證和更加複雜的資本結構，這需要利益相關者之間達成協議才能就重組達成解決方案，並且預計將通過止贖程序進行。

So as to your question as to what is going to happen with other stakeholders, we're going to be able to provide greater detail and clarity in terms of what the pro forma go-forward capital structures for those businesses will be. We do not have certainty at this time. And so we're not going to be able to give you the detail you're looking for and then answer that question. As we mentioned in the press release, we do expect to give more guidance in -- within the quarter on these positions.

因此，對於您提出的關於其他利益相關者將會發生什麼的問題，我們將能夠提供更詳細、更清晰的信息，說明這些企業的預計未來資本結構。目前我們還沒有確定性。因此，我們無法向您提供您正在尋找的詳細信息，然後回答該問題。正如我們在新聞稿中提到的，我們確實希望在本季度內就這些職位提供更多指導。

And then as to the second part, of your question you are referencing in Canopy. I do not want to address and can't because we're -- we don't have knowledge of the conversations between Canopy and various regulators. So don't want to -- don't want to go there.

然後關於您在 Canopy 中引用的問題的第二部分。我不想也不能這樣做，因為我們不了解 Canopy 和各個監管機構之間的對話。所以不想——不想去那裡。

But what I would say is what you're seeing is a dynamic where one of the issues that's being debated and looked at differently from various exchanges, and you're now seeing both TerrAscend and Curaleaf look to uplift on the TSX. One of the hot button issues has been the consolidation of financials.

但我想說的是，你所看到的是一種動態，其中一個問題正在被不同的交易所爭論和看待，你現在看到 TerrAscend 和 Curaleaf 都希望在多倫多證券交易所上漲。熱點問題之一是財務整合。

And so that was clearly a public push that several entities, including Canopy we're making. We're not trying to draw battle lines around the consolidation of financials. We think that this will evolve over time, and we take our regulatory obligations very, very seriously. So we're working with various regulators on a number of compliance structures to enable us to run the business and manage our exposures.

因此，這顯然是包括 Canopy 在內的多個實體正在做出的公開推動。我們並不是試圖圍繞財務整合劃定戰線。我們認為這會隨著時間的推移而發展，我們非常非常認真地對待我們的監管義務。因此，我們正在與各個監管機構就一系列合規結構進行合作，以使我們能夠運營業務並管理我們的風險。

And so we have a credit portfolio that's owned through a joint venture called SunStream today, and it will change character as and when these credits are potentially equitized. But I wouldn't compare our path necessarily to others, there are a bunch of different, I would say, trailblazing activities going on here in different corners of the industry. And our path is slightly different.

因此，我們今天擁有一個名為 SunStream 的合資企業擁有的信貸投資組合，當這些信貸可能被股權化時，它將改變其性質。但我不會將我們的道路與其他人進行比較，我想說，在行業的不同角落正在進行許多不同的開拓性活動。我們的道路略有不同。

That's very good color. Look, if I -- just on the retail side, cannabis. So regarding Nova, okay, the outside date has been extended. What color can you give in terms of the plans there? Like at some point, do you convert the franchises to company-owned stores under the Nova banner, would that make sense in terms of capital allocation? And at what point -- once you own 100% of the entity, do you spin it off to some SNDL shareholders? Just remind us of what the plans are there?

這是非常好的顏色。看看，如果我——只是在零售方面，大麻。所以關於 Nova，好吧，外部日期已經延長了。你能給那裡的計劃賦予什麼顏色？就像在某個時候，您是否會將特許經營權轉變為 Nova 旗下的公司自營商店，這在資本配置方面有意義嗎？一旦您擁有該實體 100% 的股份，您會在什麼時候將其分拆給一些 SNDL 股東？只是提醒我們有什麼計劃嗎？

Sure. So we've gone over this in detail, and there's also some materials available for investors on our website. But yes, you point out one avenue for growth. When you look at the mixed bag sort of corporate and franchise model that we are managing. In certain cases, a franchise partner may have an interest in owning a stake in the broader business and not just having their equity exposure combined to their individual location and business.

當然。我們已經詳細討論了這一點，並且我們的網站上還為投資者提供了一些材料。但是，是的，您指出了一種增長途徑。當你看看我們正在管理的混合型企業和特許經營模式時。在某些情況下，特許經營合作夥伴可能有興趣擁有更廣泛業務的股份，而不僅僅是將其股權風險與其個人地點和業務相結合。

So that's something that the margin that we'll look at. We also have, as you're aware, pulled a few retail licenses out of [CTA-A] with very small banners that will likely be converted over time. And so we do believe that having a focus on a small number of banners is the -- is the right way to go in terms of how we're going to allocate resources and focus on building brands.

這就是我們要關注的利潤。如您所知，我們還從 [CTA-A] 中撤回了一些帶有非常小的橫幅的零售許可證，這些橫幅可能會隨著時間的推移而轉換。因此，我們確實相信，就我們如何分配資源和專注於打造品牌而言，專注於少量橫幅是正確的方法。

But we're also seeing a number of both distressed individual and portfolio sales in the marketplace that we'll be looking for, while being very disciplined in terms of the cost of capital that both SNDL and Nova are seeing in the market today, which is -- which would make those transactions quite difficult.

但我們也在市場上看到了一些我們正在尋找的陷入困境的個人和投資組合銷售，同時在 SNDL 和 Nova 目前在市場上看到的資本成本方面非常嚴格，這是——這將使這些交易變得相當困難。

And one very last one. In the press release, there is something about -- I'm reading here, prioritizing the opportunity to return capital to our shareholders. I mean are you talking about some large onetime dividend that could be paid back to shareholders or share buybacks as a way to just improve the valuation here?

還有最後一張。在新聞稿中，有一些內容是——我在這裡讀到的，優先考慮向股東返還資本的機會。我的意思是，您是在談論一些可以返還給股東的一次性大額股息或股票回購，作為提高估值的一種方式嗎？

Yes. So Pablo, if you trace back our capital raising activities, this company was able to raise equity capital in real size at some point of its evaluation of as high as 15x revenue. As you can see today, we're trading at roughly 0.5x revenue. So when we look at our capital exposure, we're looking at all means of driving accretion for the business.

是的。所以，巴勃羅，如果你回顧一下我們的融資活動，就會發現這家公司在其估值高達 15 倍收入的某個時刻能夠籌集到實際規模的股本。正如您今天所看到的，我們的交易價格約為收入的 0.5 倍。因此，當我們審視我們的資本敞口時，我們正在尋找推動業務增長的所有方法。

And so some of that could come through organic or acquisitive growth. But also we view our equity as far too cheap at these levels. And so we would look to potentially return capital through the repurchase of equity over time. We're also, in connection with your last question, anticipating potential to dividend, Nova equity to SNDL holders as well, which we've mentioned. But we are still waiting to resolve this process with the final regulator and get approval for our transaction.

因此，其中一些可以通過有機增長或收購增長來實現。但我們也認為，在目前的水平上，我們的股票太便宜了。因此，隨著時間的推移，我們希望通過回購股權來潛在地返還資本。關於你的最後一個問題，我們還預計向 SNDL 持有者發放股息和 Nova 股權的潛力，這一點我們已經提到過。但我們仍在等待最終監管機構解決這一流程並獲得交易批准。

(Operator Instructions) The next question comes from Andrew Partheniou with Stifel GMP.

（操作員說明）下一個問題來自 Stifel GMP 的 Andrew Partheniou。

Maybe just starting off at perhaps a little bit more of a high level here. You've got an interesting perspective on the consumer, given your cannabis and liquor retail businesses, could you talk about any trends that you're seeing from the consumer's perspective? I think you mentioned a little bit in the prepared remarks about some pressure. But it does seem interesting that Liquor Depot and Ace Liquor are seeing some pretty good same-store sales growth, while your preferred labor -- your preferred label liquor sales are also picking up steam.

也許只是從更高的水平開始。鑑於您的大麻和酒類零售業務，您對消費者有一個有趣的看法，您能談談您從消費者的角度看到的任何趨勢嗎？我想你在準備好的發言中提到了一些壓力。但有趣的是，Liquor Depot 和 Ace Liquor 的同店銷售增長相當不錯，而您首選的勞動力 - 您首選的標籤酒類銷售也在強勁增長。

Yes. So what I would say, and that you're seeing this not just in Canada -- not just in Canadian cannabis but also in several markets in the U.S. But as these markets mature and given the current point in the cycle that we're at with the consumer facing a number of headwinds, we are seeing basket size under some modest pressure, I would say.

是的。所以我想說的是，你不僅在加拿大看到這種情況，不僅在加拿大大麻，而且在美國的幾個市場也看到這種情況，但隨著這些市場的成熟，考慮到我們所處的週期的當前點我想說，由於消費者面臨著許多阻力，我們看到購物籃規模面臨著一些適度的壓力。

We've seen a decline in the low single digits, but we've also seen an increase in frequency from our core consumer. So you're seeing the number of trips increase in individual purchases for those trips decreased modestly. And I'll let Tank speak to some of the dynamics we're seeing across our banners and product mix in liquor, which is very interesting.

我們看到低個位數的下降，但我們也看到核心消費者的頻率有所增加。因此，您會發現個人購買的旅行次數有所增加，但這些旅行的個人購買量略有減少。我會讓坦克談談我們在酒類產品組合和橫幅中看到的一些動態，這非常有趣。

So there's -- on the improvement on our convenience side of the business is what we are seeing lately is consumers are now back to off-premise, again, just because of high cost inflation and whatnot. And what we are focusing on, on our private label is we are committed to provide more value products in our private label offerings so that we can help consumers out in this higher inflationary environments. But overall, the trend we're seeing is there's still a lot of premiumization in urban centers, but more emphasis on value in our rural markets.

因此，我們最近看到，在我們業務便利方面的改善方面，消費者現在又回到了場外，僅僅是因為高成本通脹等原因。對於我們的自有品牌，我們所關注的是，我們致力於在自有品牌產品中提供更多價值的產品，以便我們能夠幫助消費者擺脫這個通脹較高的環境。但總體而言，我們看到的趨勢是城市中心仍然有很多高端化，但農村市場更注重價值。

And just a follow-up to that. Could you remind us what kind of margin profile does your preferred label have on the liquor segment? And how can that look going forward?

這只是後續行動。您能否提醒我們，您喜歡的品牌在酒類領域的利潤狀況如何？未來會怎樣？

So our margin profile is comparatively higher than -- on the private label than our overall margins just because we carefully choose our partners and products from various parts of the world to bring them in and still be competitive compared to national brands. But the margins vary based on product, and I'm not going to elaborate too much on individual product, sir.

因此，我們的利潤率相對高於自有品牌的整體利潤率，因為我們仔細選擇了來自世界各地的合作夥伴和產品，將它們引入，並且與國內品牌相比仍然具有競爭力。但利潤率因產品而異，先生，我不會對個別產品進行過多闡述。

No problem. Maybe switching over to the cannabis segment here. You have an interesting vertical integration strategy that's maybe a bit unique in Canada. Could you talk about where you are in the process? How much of your shelf space is SNDL products? And what kind of targets or timing, if there's any kind of color that you can share, that could be helpful?

沒問題。也許在這里切換到大麻部分。你們有一個有趣的垂直整合戰略，這在加拿大可能有點獨特。您能談談您在這個過程中的進展嗎？ SNDL 產品佔您貨架空間的多少？什麼樣的目標或時機，如果你可以分享任何類型的顏色，這可能會有幫助？

Yes, Andrew, happy to talk about vertical integration and some of our product success. We're not going to be giving guidance for regular quotes on share of shelf in own retail. It's an evolving situation. And what I can say is that if you think about the time line here, the Alcanna acquisition closed in at the end of March of 2022. And at that time, in the Value Buds network, for example, SNDL had virtually 0 representation in terms of share of shelf and today hold the material position.

是的，安德魯，很高興談論垂直整合和我們的一些產品成功。我們不會就自有零售中的貨架份額提供常規報價指導。這是一個不斷發展的情況。我能說的是，如果你考慮一下這裡的時間線，Alcanna 收購於 2022 年 3 月底完成。當時，例如在 Value Buds 網絡中，SNDL 在術語方面的代表性幾乎為 0的貨架份額，今天佔據了重要地位。

But we're also trying to be a partner to this industry more -- (inaudible) of opportunities, including co-manufacturing, where our shelf space based on branded products may be different from what a total picture would look like when you look at some of the work we're doing for other LPs and building great products for consumers. And we also look at our broader distribution beyond just our owned and managed retail. And so we're going to be careful as this segment is growing and we locked on the structure. We're still finalizing our shared services infrastructure, for example, to give too much granular detail in terms of shelf space right now.

但我們也試圖成為這個行業的合作夥伴——更多（聽不清）的機會，包括聯合製造，我們基於品牌產品的貨架空間可能與你看到的整體情況有所不同。我們為其他有限合夥人所做的一些工作以及為消費者打造出色的產品。我們還著眼於更廣泛的分銷，而不僅僅是我們擁有和管理的零售業。因此，隨著該細分市場的增長，我們將保持謹慎，並且我們鎖定了結構。例如，我們仍在最終確定我們的共享服務基礎設施，以便目前在貨架空間方面提供太多詳細信息。

All right. And maybe moving over to cost savings. You've achieved $18 million of run rate cost savings since Valens closed in January and targeting over $30 million. Maybe a few questions around this as much as you're able to share here. Is that $18 million fully realized in Q2? How much of that is comprised in cannabis operations, SG&A versus COGS or corporate costs? And what kind -- what does that breakdown look like across those 3 buckets for the remaining cost savings?

好的。也許會轉向節省成本。自 Valens 一月份關閉以來，您已經實現了 1800 萬美元的運行成本節省，目標是超過 3000 萬美元。也許您能在這里分享一些與此相關的問題。這 1800 萬美元在第二季度完全實現了嗎？其中有多少包含在大麻業務、SG&A 與 COGS 或公司成本中？對於剩餘的成本節省，這 3 個類別的細分是什麼樣的？

Yes, Andrew, it's a great question. We can tell you absolutely that, that $18 million run rate was achieved through both partially through Q1. It was a mid-January close for the transaction and then Q2. And it will -- our work will continue into 2024. We are working through a transition which does not fit cleanly into individual quarters as you're well aware.

是的，安德魯，這是一個很好的問題。我們可以絕對地告訴您，1800 萬美元的運行率是通過部分通過第一季度實現的。交易於一月中旬結束，然後是第二季度。我們的工作將持續到 2024 年。正如您所知，我們正在經歷一個並不完全適合各個領域的過渡。

And so we're still wrestling with some of the fixed costs of our total operational footprint, which we've reduced variable costs significantly with Tyler's leadership, but still need to make some key decisions and take action to eliminate some of that fixed cost. And then you're looking at a transition where inventory levels are declining at a decent clip. So we have a ton of biomass and other product on hand that we are trying to move to improve our working capital position while simultaneously reducing our cultivation activity to a much smaller footprint and taking advantage of procurement.

因此，我們仍在努力解決總運營足跡中的一些固定成本，在泰勒的領導下，我們已經顯著降低了可變成本，但仍然需要做出一些關鍵決策並採取行動來消除一些固定成本。然後你就會看到庫存水平正在以相當大的速度下降的轉變。因此，我們手頭有大量的生物質和其他產品，我們正在努力改善我們的營運資金狀況，同時將我們的種植活動減少到更小的佔地面積並利用採購。

So it's one thing to compare prices in the market for flower procurement, for example, versus our legacy cost per gram in our own cultivation facilities, but we're -- there's too many, I think, variables to give you great detail on that right now. But we do expect material benefit and improvement in COGS. And I would say that the cost initiatives that we're quoting are a direct result of a very detailed plan that was brought together both with our internal team and an outside consultant, specifically with rationalizing our cannabis operations business.

因此，將花卉採購市場的價格與我們自己的栽培設施中每克的傳統成本進行比較是一回事，但我認為，有太多變量無法為您提供詳細信息現在。但我們確實預計會帶來實質性效益和銷貨成本的改善。我想說，我們引用的成本計劃是與我們的內部團隊和外部顧問共同製定的非常詳細的計劃的直接結果，特別是合理化我們的大麻運營業務。

And so there are -- there are implications for cannabis retail and certainly for our corporate structure. But we're predominantly trying to rightsize the business and take advantage of the innovation and product development and engineering that Valens is capable of while also moving away from higher cost cultivation, which is really what our position was when we were solely working with the facility at Olds given the volatility we've seen in Alberta power prices.

因此，這對大麻零售，當然還有我們的公司結構都有影響。但我們主要是在嘗試調整業務規模，利用 Valens 所具備的創新、產品開發和工程能力，同時擺脫更高成本的種植，這正是我們單獨與該工廠合作時的立場。考慮到我們在艾伯塔省電價中看到的波動，奧爾茲的價格。

And maybe just one last one for me, kind of following on something that you mentioned in this last question and just on the inventory, realizing that you might not want to go into too much detail. But just wondering if you can give any update on how that monetizing of the biomass that you've acquired, how is that going?

也許對我來說只是最後一個，有點像你在最後一個問題和清單中提到的一些事情，意識到你可能不想透露太多細節。但只是想知道您是否可以提供有關如何將您所獲得的生物質貨幣化的最新信息，進展如何？

And just kind of what we should be expecting going forward, given there's lots of puts and takes in your inventory line? So hard to parse through a one-line item that on the balance sheet, but any additional color that you can provide is useful.

考慮到您的庫存線中有大量的賣出和賣出，這正是我們應該期待的未來嗎？很難解析資產負債表上的單行項目，但您可以提供的任何其他顏色都是有用的。

Yes. So we can -- I think we're going to be able to provide a lot more clear (inaudible) you get down to dollars in Q3, but this is an ongoing process right now. I would just remind you that one of the interesting elements of the -- or positions that the Valens team had prior to this acquisition was one of the largest procurers and consumers of biomass in the country.

是的。所以我們可以——我認為我們將能夠在第三季度提供更清晰（聽不清）的美元信息，但目前這是一個持續的過程。我只想提醒您，Valens 團隊在此次收購之前所擁有的有趣元素之一是該國最大的生物質採購商和消費者之一。

And so that puts us in a great position where Tyler and his team have really good visibility and the ability to discover price in -- it's really all levels in terms of quality and quantity in the country. So that enables us to really move quickly and decisively when it comes to monetizing inventory. And so I would say that things are going well, still some work to do, but it's in progress. And we have a pretty tight focus on what we think our realized outcomes are going to be.

因此，這使我們處於一個有利的位置，泰勒和他的團隊擁有非常好的可見性和發現價格的能力——就質量和數量而言，該國的價格確實處於各個水平。因此，這使我們能夠在庫存貨幣化方面真正快速而果斷地採取行動。所以我想說，事情進展順利，仍然有一些工作要做，但它正在進展中。我們非常關注我們認為我們將實現的結果。

This concludes the question-and-answer session. I would like to turn the conference back over to Zach George for any closing remarks.

問答環節到此結束。我想將會議轉回扎克·喬治發表閉幕詞。

I'd like to thank everyone for joining the call today, and we look forward to updating you in the near future. Thank you very much.

我要感謝大家今天加入電話會議，我們期待在不久的將來向您通報最新情況。非常感謝。

This concludes today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

今天的電話會議到此結束。您可以斷開線路。感謝您的參與，祝您度過愉快的一天。