SNDL Inc (SNDL) 2024 Q3 法說會逐字稿

Good morning, and welcome to SNDL's third-quarter 2024 financial results conference call. This morning, SNDL issued a press release announcing their financial results for the 2024 third quarter ended on September 30, 2024.

早安，歡迎參加 SNDL 2024 年第三季財務業績電話會議。今天上午，SNDL 發布新聞稿，宣布了截至 2024 年 9 月 30 日的 2024 年第三季的財務業績。

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 sndl.com website. SNDL has also posted a supplemental investor presentation. In addition to the conference call presentation, we will be reviewing today on its sndl.com website.

本新聞稿可在公司網站 sndl.com 查閱，並可在 EDGAR 和 SEDAR 上備案。電話會議的網路直播重播也將在 sndl.com 網站上提供。SNDL 也發布了一份補充投資者介紹。除了電話會議演示之外，我們今天還將在其 sndl.com 網站上進行審查。

Presenting on this morning's call, we have Zach George, Chief Executive Officer; and Alberto Paredero, Chief Financial Officer. 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.

參加今天早上電話會議的有執行長 Zach George；以及財務長 Alberto Paredero。在我們開始之前，我想提醒投資者，今天的電話會議中討論的某些事項或對問題的回答可能構成前瞻性陳述。實際結果可能與預期結果有重大差異。

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. Additionally, all financial figures mentioned are in Canadian dollars, unless otherwise indicated. We will now make prepared remarks, then we'll move on to analyst questions.

可能影響結果的風險因素詳細說明在公司的財務報告和 SEDAR 和 EDGAR 上提供的其他公開文件中。此外，除非另有說明，所有提及的財務數據均為加幣。我們現在將發表準備好的發言，然後開始回答分析師的問題。

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

現在我想把電話轉給扎克喬治。請繼續。

Welcome to SNDL's Q3 2024 financial and operational results conference call. We are pleased to report robust revenue growth in our cannabis segments, a record-breaking gross margins and positive free cash flow for the third quarter of 2024.

歡迎參加 SNDL 2024 年第三季財務與營運績效電話會議。我們很高興地報告，我們的大麻部門收入強勁成長，毛利率創下歷史新高，2024 年第三季自由現金流為正。

Our cannabis segments continued to show strong momentum, achieving steady revenue gains for the 11th consecutive quarter. Despite weaker demand in our liquor segment, we delivered higher year-over-year margins and substantial growth in operating income for the segment. We achieved an all-time high gross margin of 26.6%, propelled by further margin expansion in liquor retail and significant improvement within our cannabis operations.

我們的大麻部門持續呈現強勁勢頭，連續 11 個季度實現穩定的收入成長。儘管我們的酒類分部需求疲軟，但該分部的利潤率同比上升，且營業收入大幅增長。我們實現了 26.6% 的歷史新高毛利率，這得益於酒類零售利潤率的進一步擴大和大麻業務的顯著改善。

Free cash flow was positive this quarter, supported by ongoing operational gains in gross margin and efficient working capital management. We remain on track to deliver positive free cash flow for the 2024 calendar year, meeting or even exceeding our guidance. This quarter and in recent days, we launched several strategic initiatives that we expect to drive SNDL towards long-term sustainable profitability.

本季自由現金流為正，得益於毛利率的持續營運成長和高效率的營運資本管理。我們仍有望在 2024 年曆年實現正的自由現金流，達到甚至超過我們的預期。本季和最近幾天，我們推出了多項策略舉措，希望推動 SNDL 實現長期永續獲利。

These include a restructuring program aimed at reducing corporate overheads, enhancing organizational efficiency and realizing annualized savings of more than $20 million. Additionally, we moved to privatize Nova through the acquisition of the remaining outstanding minority equity interest and just yesterday closed the acquisition of Indiva, enabling us to emerge as the leader in the Canadian infused edibles category.

其中包括一項重組計劃，旨在減少公司管理費用、提高組織效率並實現每年超過 2000 萬美元的節約。此外，我們透過收購剩餘的少數股權實現了 Nova 的私有化，並且昨天剛完成對 Indiva 的收購，這讓我們成為加拿大註入式食品領域的領導者。

Together, these actions are strengthening our foundation and expanding our potential for future growth. Our leadership team is working on a number of additional initiatives and investment opportunities that we are excited to share as they come to fruition in future periods. Our solid balance sheet serves as a beacon for future opportunities, enabling us to allocate capital thoughtfully across both organic and inorganic investments.

這些舉措共同加強了我們的基礎並擴大了我們未來成長的潛力。我們的領導團隊正在研究一些額外的措施和投資機會，我們很高興在未來與大家分享這些措施和投資機會。我們穩健的資產負債表是未來機會的燈塔，使我們能夠在有機和無機投資中精心分配資本。

In the third quarter, we increased our cash balances from $183 million on June 30 to $263 million on September 30, 2024, and continue to have 0 outstanding debt. We have not raised cash through the issuance of shares since 2021. And our share repurchase program became active subsequent to the end of the quarter.

第三季度，我們的現金餘額從 6 月 30 日的 1.83 億美元增加到 2024 年 9 月 30 日的 2.63 億美元，並且繼續保持 0 未償還債務。自 2021 年起，我們還沒有透過發行股票來籌集現金。我們的股票回購計劃在本季結束後開始生效。

I will now turn the call over to Alberto.

現在我將電話轉給 Alberto。

Thank you, Zach. I want to remind you all that amounts discussed today are denominated in Canadian dollars, unless otherwise stated. Certain amounts referred to on this call are non-GAAP and non-IFRS measures. For definitions of these measures, please refer to SNDL's management discussion and analysis document.

謝謝你，扎克。我想提醒大家，今天討論的金額均以加幣計價，除非另有說明。本次電話會議中提及的某些金額為非 GAAP 和非 IFRS 指標。有關這些措施的定義，請參閱 SNDL 的管理討論和分析文件。

Looking at our Q3 2024 financial highlights, we continue to see significant improvements in gross profit, gross margin and free cash flow. Net revenue in the third quarter of 2024 reached $236.9 million, a marginal decline compared to the prior year. This decline was driven by our liquor retail segment, while our combined cannabis segment posted a healthy 8% growth.

回顧我們 2024 年第三季的財務亮點，我們繼續看到毛利、毛利率和自由現金流的顯著改善。2024年第三季淨收入達2.369億美元，較上年同期略有下降。這一下降是由我們的酒類零售部門推動的，而我們的綜合大麻部門實現了 8% 的健康成長。

Gross profit of $63 million represents a $14.4 million increase or 30% growth year over year with a substantial 610 basis points improvement in gross margin. This translates into another quarter of record gross margin reaching 26.6%.

6,300 萬美元的毛利比去年同期增加 1,440 萬美元，增幅為 30%，毛利率大幅提高 610 個基點。這意味著本季的毛利率再創歷史新高，達到 26.6%。

Despite the significant improvements in margin and continued optimization of operating expenses, adjusted operating income was negative $16.6 million, a slight decrease compared to the prior year. This was mainly driven by an unfavorable $13.4 million fair value adjustment from our equity accounted investees in the quarter compared to a $6.6 million revaluation in the same quarter of the prior year.

儘管利潤率大幅提高且營業費用持續優化，調整後的營業收入仍為負 1,660 萬美元，較上年略有下降。這主要是由於本季我們權益法核算的投資對象的公允價值調整不利，為 1,340 萬美元，而去年同期的公允價值調整為 660 萬美元。

It is important to note that we only adjust operating income for restructuring charges and intangible impairments, which in the third quarter were limited to a $1.9 million restructuring charge. If we were to exclude the volatility created by quarterly fair value adjustment to our equity accounted investees, the improvement in adjusted operating income compared to the same third quarter of the prior year would have been $19 million.

值得注意的是，我們僅根據重組費用和無形資產減損調整營業收入，第三季的重組費用僅限於 190 萬美元。如果我們排除因季度公允價值調整對我們權益法核算的投資對象造成的波動，與去年同期相比，調整後的營業收入將增加 1,900 萬美元。

Free cash flow was positive in the quarter at $9.2 million, bringing the year-to-date free cash flow to a negative $2.8 million. We're on pace to deliver positive free cash flow for the 2024 calendar year, in line with or ahead of guidance. Free cash flow in the quarter was lower than in the same period of prior year, driven by different management of phasing of retail inventory buildup throughout the year, as we will discuss in a few minutes.

本季自由現金流為正 920 萬美元，導致年初至今的自由現金流為負 280 萬美元。我們預計在 2024 年曆年實現正自由現金流，與預期一致或超出預期。本季的自由現金流低於去年同期，這是由於全年對零售庫存累積階段的不同管理所致，我們將在幾分鐘後進行討論。

When examining the historical quarterly financial performance evolution, we clearly observe a few patterns. Net revenue in 2024 is relatively flat compared to 2023 as the strong growth in our cannabis segment is being offset by market softness in the larger liquor segment. We also see a clear trend of profitability improvement, both in gross profit and adjusted operating income.

當我們研究歷史季度財務業績變化時，我們清楚地觀察到一些模式。2024 年的淨收入與 2023 年相比相對持平，因為我們的大麻部門的強勁增長被更大的酒類部門的市場疲軟所抵消。我們也看到獲利能力明顯改善的趨勢，無論是毛利或調整後的營業收入。

The same applies to free cash flow, where there is a noticeable upward trend compared to previous years. Additionally, we observed a more muted seasonality effect, thanks to our disciplined approach to working capital management. As we look at the contributions from each segment, we can see how the net revenue decline in liquor is impacting the overall consolidated results despite the strong performance from cannabis.

自由現金流也是如此，與前幾年相比呈現明顯的上升趨勢。此外，由於我們採取了嚴格的營運資本管理方法，我們觀察到季節性效應更加減弱。當我們查看每個部門的貢獻時，我們可以看到，儘管大麻表現強勁，但酒類淨收入的下降正在影響整體綜合業績。

When we add the $5.6 million net revenue growth from cannabis retail, the $4.1 million from cannabis operations and the negative $3.1 million in the corporate segment related to the revenue elimination from cannabis operations sales into our own retail, we arrived at a total of $6.5 million or 8% growth in cannabis.

當我們將大麻零售的 560 萬美元淨收入增長、大麻運營的 410 萬美元以及與大麻運營銷售收入消除相關的企業部門負 310 萬美元添加到我們自己的零售中時，我們得出了大麻總額為 650 萬美元或 8% 的增長。

In terms of gross profit, liquor retail shows a small decline of $0.3 million despite the larger revenue shortfall. Cannabis retail contributes to an improvement of $0.7 million, while cannabis operations is driving most of the growth with an impressive $14 million improvement. The aggregate of all the segment adds up to $14.4 million or 30% growth in gross profit.

毛利方面，酒類零售雖然收入缺口較大，但還是小幅下降了30萬美元。大麻零售貢獻了 70 萬美元的成長，而大麻營運則推動了大部分成長，貢獻了令人印象深刻的 1,400 萬美元的成長。所有部門的總毛利為 1,440 萬美元，成長 30%。

When looking at adjusted operating income, we can clearly see the significant step-up in profitability driven by our operating segments, offset by the volatility of the fair value adjustment in our investment segment. Our corporate segment shows a small unfavorable variance of $1.4 million, driven by inflation and the different phasing of onetime expenses, partly offset by restructuring productivity savings.

從調整後的營業收入來看，我們可以清楚地看到，我們的經營分部推動的獲利能力顯著提升，但被投資分部的公允價值調整波動所抵銷。我們的企業部門出現了 140 萬美元的小幅不利差異，原因是通貨膨脹和一次性費用的不同分期，但重組生產力節省的部分抵消了這一差異。

Free cash flow is positive at $9.2 million in the third quarter of 2024. Although it is a reduction compared to the same quarter in the previous year, this reduction is driven by a different phasing of inventory buildup between the quarters. We can see this more clearly on the next page.

2024 年第三季的自由現金流為正 920 萬美元。儘管與去年同期相比有所減少，但這種減少是由於各季度庫存累積階段不同所致。我們可以在下一頁更清楚地看到這一點。

As we examine the drivers of free cash flow in the third quarter of 2024, we first noticed the negative $19.3 million in net income, primarily driven by the fair value adjustment in our investment segment. Since this is a noncash item in our P&L, it is offset by noncash add-backs, which are higher in the third quarter compared to the previous two quarters for this reason.

當我們研究 2024 年第三季自由現金流的驅動因素時，我們首先註意到淨收入為負 1,930 萬美元，這主要是由於我們投資部門的公允價值調整所致。由於這是我們損益表中的非現金項目，因此它被非現金加回所抵消，由於這個原因，第三季的非現金加回高於前兩個季度。

A benefit we saw in the third quarter was a collection of $10.7 million of accrued interest related to the repayment of the majority of Ascend and Jushi loans from SunStream. This interest was previously recorded in our P&L as part of the net asset value of the investment segment. As the interest was collected, we see a positive impact on free cash flow. The repayment of the principal balance was associated with these two loans, while reported as an increase in cash is excluded from free cash flow calculation.

我們在第三季看到的一項收益是收取了 1,070 萬美元的應計利息，該利息與償還 SunStream 的大部分 Ascend 和 Jushi 貸款有關。該利息之前已記錄在我們的損益表中，作為投資部門淨資產價值的一部分。隨著利息的收取，我們看到對自由現金流的正面影響。本金餘額的償還與這兩筆貸款有關，而報告的現金增加不包括在自由現金流計算中。

The net change in inventory and other working capital is slightly positive at $0.9 million in the third quarter of 2024, with relatively small fluctuations between quarters. As we can see in the bar chart on the right of page 7, in 2024, we have significantly less volatility in terms of inventory seasonality buildup.

2024 年第三季度，存貨和其他營運資本的淨變化略為正值，為 90 萬美元，季度間波動相對較小。正如我們在第 7 頁右側的長條圖中所看到的，到 2024 年，庫存季節性累積的波動性將明顯減少。

In previous years, we had a large increase in the first quarter, a moderate increase in the second and reductions in the second half of the year. In 2024, the buildup in the first half was much smaller. And as a result, the reduction in the second half will also be smaller.

往年都是第一季大幅成長，第二季適度成長，下半年減少。2024年，上半年的增幅要小得多。因此，下半年的降幅也會較小。

Let's now look at each of the three operating segments, starting with liquor retail. Net revenue in the third quarter of 2024 for this segment was $144.6 million, a decline of $7.2 million or 4.8% compared to the prior year. While the decline is smaller than what we saw in the second quarter and revenue is growing quarter-over-quarter by $4 million, we're still impacted by the softness seen across North America. We continue to believe this is not a concern in terms of long-term growth potential for this segment.

現在讓我們來看看三個營運部門，從酒類零售開始。該部門 2024 年第三季的淨收入為 1.446 億美元，較上年下降 720 萬美元或 4.8%。雖然降幅小於第二季度，營收季增 400 萬美元，但我們仍受到北美疲軟的影響。我們仍然相信，就該領域的長期成長潛力而言，這不是一個問題。

Despite these macro headwinds, we continue to expand gross margin, reaching 25.6% in the third quarter, an improvement of 100 basis points compared to last year. As a result of this margin expansion and efficiencies in the management of operating expenses, this segment's operating income delivered significant growth of $3.5 million or 42.5% compared to the same quarter of 2023.

儘管面臨這些宏觀不利因素，我們仍繼續擴大毛利率，第三季達到 25.6%，比去年同期提高了 100 個基點。由於利潤率的擴大和營運費用管理的效率，該部門的營運收入與 2023 年同期相比大幅增加了 350 萬美元，增幅為 42.5%。

Moving into cannabis retail, we saw net revenue in Q3 2024 of $81.1 million, a 7.4% increase compared to Q3 of 2023. This growth was mainly driven by same-store sales growth of 2.3%, new store openings and incremental revenue from our Dutch Love stores acquired earlier in the year.

進入大麻零售領域，我們看到 2024 年第三季的淨收入為 8,110 萬美元，與 2023 年第三季相比成長 7.4%。這一成長主要得益於同店銷售額成長 2.3%、新店開業以及今年稍早收購的 Dutch Love 門市帶來的增量收入。

The gross margin of 25.5% represented a reduction of 100 basis points compared to the same period of last year due to several strategic pricing decisions aimed at increasing the store traffic. Adjusted operating income increased by $1 million or 28.1% compared to the prior year, driven by the gross profit improvement.

由於旨在增加門市客流量的幾項策略定價決策，毛利率為 25.5%，與去年同期相比減少了 100 個基點。調整後營業收入較前一年增加 100 萬美元，增幅 28.1%，主要得益於毛利的提高。

Finally, our cannabis operations segment is once again showing the largest improvement, both in terms of growth and profitability. In the third quarter of 2024, this segment delivered net revenue growth of 19% year over year, reaching $25 million. All of this growth is organic and driven by increased provincial board and B2B distribution.

最後，我們的大麻業務部門再次顯示出最大的改善，無論是在成長還是獲利方面。2024 年第三季度，該部門淨收入年增 19%，達到 2,500 萬美元。所有這些成長都是有機的，並由省級董事會和 B2B 分銷的成長所推動。

By accelerating gross margin improvements through several productivity initiatives, the segment reached a new record of 21.2%, translated to $5.3 million in gross profit. This is a significant step-up compared to last year and previous quarters. Adjusted operating income was negative $0.6 million, marking an improvement of close to $14 million compared to the same period last year.

透過多項生產力措施加速毛利率的提高，該部門達到了 21.2% 的新紀錄，毛利為 530 萬美元。與去年同期和前幾季相比，這是一個顯著的成長。調整後營業收入為負 60 萬美元，較去年同期增加近 1,400 萬美元。

In summary, our cannabis business is experiencing strong growth, and we're driving significant improvements in profitability and cash flow generation. We're on pace to deliver our guidance of positive free cash flow for the full year, marking an important step in contributing to raise the bar and realize our full potential.

總而言之，我們的大麻業務正在強勁成長，我們正在推動獲利能力和現金流產生的顯著改善。我們正在按計劃實現全年自由現金流為正的預期，這標誌著我們朝著提高標準和充分發揮潛力邁出了重要一步。

I would now like to pass the call back to Zach to share a few more operational highlights for the quarter.

現在，我想將電話轉回給扎克，讓他分享本季的更多營運亮點。

Thank you, Alberto. Beyond our financial performance, I would also like to highlight our core priorities: growth, profitability, and people as each are fundamental to our long-term success. Starting with growth, our cannabis segments have led with a combined net revenue increase of 7.4% year over year in Q3 and an impressive 90 basis point share gain in Canadian retail. Key drivers include quality execution, stabilization from 2023 store openings and the recent expansion into British Columbia.

謝謝你，阿爾貝托。除了財務表現之外，我還想強調我們的核心優先事項：成長、獲利能力和人才，因為它們都是我們長期成功的基礎。從成長開始，我們的大麻部門處於領先地位，第三季的綜合淨收入年增 7.4%，加拿大零售業的份額增加了 90 個基點。關鍵驅動因素包括品質執行、2023 年開店後的穩定以及最近在不列顛哥倫比亞省的擴張。

Our cannabis operations segment showed dynamic growth of 19%, driven by quality and innovation with 71 distribution points added this quarter and 491 year to date. Through M&A, we strengthened our portfolio with two very recent acquisitions, Indiva, making us a leader in Canadian edibles and the privatization of Nova, allowing SNDL shareholders to fully benefit from retail segment growth. In liquor retail, despite this year's market contraction, our private label offerings are growing to meet consumer demand for quality and affordability while driving margin accretion.

我們的大麻業務部門表現出 19% 的動態成長，這得益於品質和創新，本季新增了 71 個分銷點，今年迄今新增了 491 個分銷點。透過併購，我們最近完成了兩次收購，增強了我們的投資組合，Indiva 使我們成為加拿大食品領域的領導者，而 Nova 的私有化使 SNDL 股東能夠充分受益於零售部門的成長。在酒類零售方面，儘管今年市場萎縮，但我們的自有品牌產品仍在成長，以滿足消費者對品質和價格承受能力的需求，同時推動利潤率的成長。

Shifting to profitability, we are pleased to see continued strong momentum, leading to the record gross margin and $9 million of positive free cash flow in the quarter. Our positive free cash flow was enabled by efficiency improvements and interest income and not impacted by the noncash fair value adjustment of our investment portfolio.

轉向獲利能力，我們很高興看到繼續保持強勁勢頭，導致本季毛利率創下歷史新高，並實現了 900 萬美元的正自由現金流。我們的正自由現金流得益於效率提高和利息收入，而不受我們投資組合的非現金公平價值調整的影響。

Productivity improvements totaled $15 million in Q3, largely from our cannabis operations segment through procurement, manufacturing and cultivation efficiencies. Data licensing in our cannabis and liquor retail segments reached $4 million this quarter, a 6% increase from the second quarter.

第三季的生產力改善總計 1500 萬美元，主要來自我們的大麻業務部門透過採購、製造和種植效率的提高。本季度，我們的大麻和酒類零售部門的數據許可達到 400 萬美元，較第二季度成長 6%。

We also achieved $5 million in overhead savings, more than offsetting inflation and growth investments driven by efficiency gains across all segments as well as restructuring actions initiated in July. As you can see on the following page, summarizing the restructuring program progress, this program delivered more than $2 million in savings in the quarter, equivalent to an annualized run rate of $10 million or about 50% of our planned target.

我們還實現了 500 萬美元的管理費用節省，足以抵消通貨膨脹和由所有部門效率提高以及 7 月啟動的重組行動推動的成長投資。正如您在下頁看到的，重組計劃的進展總結顯示，該計劃在本季度實現了 200 多萬美元的節約，相當於年化運行率 1000 萬美元，約占我們計劃目標的 50%。

Finally, we remain committed to our people as a top strategic priority. In the second quarter, we launched a strategic talent review to identify key roles as well as development and succession plans.

最後，我們依然致力於將人民放在第一位的戰略重點。第二季度，我們啟動了策略人才評估，以確定關鍵職位以及發展和繼任計畫。

We continued deploying several community engagement initiatives, offering all of our team members the possibility to participate in sessions around mental and physical well-being and also rolled out an employee recognition program with over 40 awards being presented across our organization, celebrating the amazing contributions from our team members. Last but not least, we continue the development of a total reward structure that aligns our compensation philosophy with both individual and company performance.

我們繼續部署多項社區參與計劃，為所有團隊成員提供參加有關身心健康的活動的機會，同時還推出了員工表彰計劃，在整個組織內頒發了 40 多個獎項，以表彰團隊成員的傑出貢獻。最後但同樣重要的一點是，我們將繼續發展全面的獎勵結構，使我們的薪酬理念與個人和公司績效保持一致。

My conviction and confidence in our team that is setting new records with each quarter are at all-time highs. Our dedicated leaders have the expertise and drive to unlock SNDL's significant potential. I'd like to thank our entire team for their contributions and our shareholders for their continued trust.

我對我們的團隊每個季度都在創下新紀錄的信心達到了歷史最高水平。我們敬業的領導者擁有專業知識和動力，可以釋放 SNDL 的巨大潛力。我要感謝我們整個團隊的貢獻以及股東的持續信任。

I will now pass the call back to the operator for analyst Q&A. Thank you.

我現在將把電話轉回給接線員，以便分析師進行問答。謝謝。

(Operator Instructions) Frederico Gomes, ATB Capital Markets.

（操作員指示） Frederico Gomes，ATB 資本市場。

First question on the Nova acquisition. Could you talk about, I mean, why you decided to acquire that remaining stake? And strategically, I guess, just what sort of advantages do you see in owning -- fully owning Nova as opposed to a majority stake?

第一個問題關於 Nova 收購。你能談談為什麼你決定要收購剩餘的股份嗎？從策略角度來看，您認為完全擁有 Nova 相對於擁有多數股權有哪些優勢？

Frederico, thank you very much for the question. So as you know, this is a very competitive space with excess taxation and reasonably low margins. So the acquisition of that minority stake in Nova is going to ensure that SNDL shareholders can get the full benefit of the cash flow and earnings potential of that retail business.

弗雷德里科，非常感謝您提出這個問題。如你所知，這是一個競爭非常激烈的領域，稅收過高，利潤率相當低。因此，收購 Nova 的少數股權將確保 SNDL 股東能夠充分利用該零售業務的現金流量和獲利潛力。

On your cannabis operations, quite a significant improvement in margins there. Can you talk a little bit about the key drivers behind that margin improvement? And in terms of your expectations going forward, do you expect to continue to see margin expanding? And if so, where is that going to come from?

就你們的大麻業務而言，利潤率有相當顯著的提高。能否談談利潤率提高的關鍵驅動因素？就您對未來的期望而言，您是否預期利潤率將繼續擴大？如果是這樣，那它將從何而來？

Yes. Fred, this is Alberto. So yes, actually, most of the -- or all of the improvements are driven by an end-to-end holistic productivity program that the management team of the segment has put in place already since the end of last year. As you remember, in the fourth quarter of 2023, we decided to exit or close the Olds facilities that created already a bump in the gross margin and the profitability of the segment in the first couple of quarters. Since then, we have been driving efficiencies in labor and automation in our manufacturing facilities.

是的。弗雷德，這是阿爾貝托。所以是的，實際上，大部分或所有的改進都是由該部門的管理團隊自去年年底以來已經實施的端到端整體生產力計劃所推動的。大家還記得，在 2023 年第四季度，我們決定退出或關閉 Olds 工廠，這已經在前幾個季度帶來了該部門毛利率和盈利能力的提升。自那時起，我們一直致力於提高製造工廠的勞動力和自動化效率。

We're seeing a ramp-up in our cultivation assets as well. So as we were already anticipating in the previous quarters, we were expecting to be over 20% by the end of this year.

我們的種植資產也在增加。因此，正如我們在前幾個季度所預期的那樣，我們預計今年年底這一比例將超過 20%。

So we're happy to see that already happening in the second -- in the third quarter. And we have a long list of additional initiatives, including the additional capacity utilization from the growth that the business has seen and more automation and efficiency improvements that will continue to push that gross margin further up.

因此，我們很高興看到這在第二季和第三季已經發生。我們還有一系列額外的舉措，包括透過業務成長來提高產能利用率，以及提高自動化和效率，這些都將繼續進一步提高毛利率。

Yes. Frederico, you've been following our story for quite some time, and you're well aware that in the earlier days several years ago, Olds was sitting with exposure to a power jurisdiction that really challenged its competitiveness. And so as we've built the business, leaned more into procurement and broadened out our manufacturing capabilities, we have been able to eliminate exposure to high-cost biomass, which would really impair COGS.

是的。弗雷德里科，您關注我們的故事已經有一段時間了，您也很清楚，幾年前，奧茲莫比爾 (Olds) 面臨著電力管轄權的威脅，這對其競爭力提出了真正的挑戰。因此，隨著我們業務的建立、更傾向於採購並擴大我們的製造能力，我們已經能夠消除對高成本生物質的依賴，而這將真正損害銷貨成本。

And so that was a meaningful first step that's been showing up through the numbers in the last year. And our President of cannabis, Tyler Robson, has been leading for a number of initiatives that are being very impactful in today's environment, including managing mix, SKU creep, automation. And so there's a number of efficiencies that are still in play. And we're very confident in the team being in a position where they actually understand the drivers here and can action against the economic outcomes that we're seeking. So when we think about room for expansion, do we think that we can take gross margins to a zone where they have a three handle, the answer is absolutely.

這是很有意義的第一步，這一點已從去年的數據中體現出來。我們的大麻總裁泰勒羅布森 (Tyler Robson) 一直領導多項在當今環境下產生巨大影響的舉措，包括管理組合、SKU 蔓延和自動化。因此，仍有許多效率措施在發揮作用。我們非常有信心，團隊確實了解這裡的驅動因素，並能採取行動實現我們所尋求的經濟結果。因此，當我們考慮擴展空間時，我們是否認為我們可以將毛利率提升到三個手柄的區域，答案是肯定的。

So a lot more to come here.

因此，這裡還有更多內容。

Perfect. And then just one more for me. In regards to capital allocation, I know that you mentioned a bit of this, but how are you looking at, I guess, different growth options and investments in Canada, the US or other geographies internationally? And the second part of the question also in regards to your buyback, you obviously repurchased some shares recently.

完美的。然後對我來說再來一個。關於資本配置，我知道您提到了一些這方面的內容，但我想您是如何看待加拿大、美國或其他國際地區的不同成長選擇和投資的？問題的第二部分也與您的回購有關，您最近顯然回購了一些股票。

So can you comment on those repurchases? Is it something that you intend to continue to do tap that buyback? And in terms of the valuation here, you bought it at $1.90. So how do you view your valuation right now at over $2.20?

那麼您能對這些回購做出評論嗎？您是否打算繼續利用這種回購手段？就這裡的估價而言，你以 1.90 美元的價格買入它。那麼您如何看待目前超過 2.20 美元的估值？

So there's a few questions in there. Just starting with capital allocation. It's going to be a very similar answer consistent with what we spoke about last quarter, Frederico. So two real key priorities in terms of capital allocation are going to be continued growth in Canadian retail and also investment in -- potential investment in assets in the US Both of those pillars are part of our core multiyear strategic plan.

其中有幾個問題。剛從資本配置開始。弗雷德里科，這個答案將與我們上個季度討論的非常相似。因此，資本配置方面的兩個真正關鍵優先事項是繼續成長加拿大零售業以及對美國資產的潛在投資。

And when you think about the repurchase of shares, we absolutely want to take advantage of repurchasing shares at levels that we think reflect a discounted valuation.

當您考慮回購股票時，我們絕對希望利用我們認為反映折扣估值的水平回購股票。

The transactions that you referenced were part of a nondiscretionary trading plan, which we were able to execute through a blackout period. And this is something that will be regularly reviewed by our Board in terms of scale and levels at which to purchase. So we expect to be in a position to acquire shares on an ongoing basis. I think there's a misconception out there that somehow a share repurchase plan is best used to prop up a security. And that's just something we will never do.

您所提到的交易是非自由支配交易計劃的一部分，我們可以在禁售期內執行該計劃。我們的董事會將定期審查採購的規模和水準。因此，我們期望能夠持續收購股票。我認為有一種誤解，認為股票回購計畫是支撐證券的最佳方式。這是我們永遠不會做的事情。

It's really for the benefit of long-term holders as we're reflecting really strongly into positive free cash flow and ultimately net income.

這確實有利於長期持有者，因為我們對正自由現金流和最終淨收入的反映非常強烈。

Yewon Kang, Canaccord Genuity.

Yewon Kang，Canaccord Genuity。

So my first question is regarding the recently completed Indiva acquisition. Through that transaction, SNDL obtained a facility in London. And my understanding is now that the company has two edibles-focused facility, including the LYF facility in Kelowna. Just wanted to ask about if you guys have any plans to consolidate these facilities in the future. And I know it's only been a few weeks since the acquisition closed, but could you guys give us a color on the upside you're seeing from integrating Indiva brands onto your distribution channel?

我的第一個問題是關於最近完成的 Indiva 收購。透過該交易，SNDL 獲得了位於倫敦的一家工廠。據我了解，該公司目前擁有兩家專注於食品的工廠，包括位於基洛納的 LYF 工廠。只是想問你們將來是否有合併這些設施的計劃。我知道收購才剛結束幾週，但你們能否談談將 Indiva 品牌整合到你們的分銷管道中將帶來哪些好處？

It's a great question. And I'll let Alberto talk a little bit about our broader planning. The acquisition actually closed yesterday, so well inside of a few weeks. And we're very excited about the addition of the Indiva team and product mix to our broader business. You will see an impact in Q4 from almost two months' worth of performance there.

這是一個很好的問題。我將讓 Alberto 稍微談談我們更廣泛的規劃。這項收購實際上已於昨天完成，距今僅有幾週的時間。我們非常高興 Indiva 團隊和產品組合能夠加入我們更廣泛的業務。您將會看到第四季近兩個月的表現所帶來的影響。

And given the margin profile that's available in the edibles category, we see that this acquisition being margin accretive to our upstream manufacturing portfolio. So it's something we're very excited about. I would answer the question on real estate more broadly. There are a number of opportunities we have for facility consolidation that will result in noncore real estate being available for monetization, which should further bolster cash balances and enable us to recycle capital into accretive opportunities. We're going to be working on a longer-term prudent and thoughtful integration plan with Indiva, and we'll be able to provide more details on that in the coming months.

考慮到食品類別的利潤狀況，我們認為此次收購將增加我們上游製造組合的利潤。所以這是我們非常興奮的事情。我會更廣泛地回答有關房地產的問題。我們有許多設施整合的機會，這將導致非核心房地產可供貨幣化，這將進一步增加現金餘額，並使我們能夠將資本回收為增值機會。我們將與 Indiva 制定更長期、更審慎、更周到的整合計劃，並將在未來幾個月內提供更多細節。

Yes. Just to add the -- both our teams, the existing of SNDL and the team from Indiva now joining our family, they are already collaborating and exploring the different synergy opportunities that we have across revenue, supply chain and operating expenses. We do have a long list of ideas that are being analyzed to make sure we make the right choices and the right decisions. But certainly, we do see a lot of synergies. We'll be able to share where those opportunities are as we complete the analysis in the next several weeks.

是的。補充一下——我們的兩個團隊，現有的 SNDL 團隊和現在加入我們大家庭的 Indiva 團隊，他們已經在合作並探索我們在收入、供應鏈和營運費用方面的不同協同機會。我們確實有很多想法需要分析，以確保我們做出正確的選擇和正確的決定。但可以肯定的是，我們確實看到了許多協同效應。我們將在接下來的幾週內完成分析，並分享這些機會。

And just a second question on the retail environment for cannabis dispensaries. So a couple of your peers have called out some of the pressures that they're seeing in Ontario, specifically in relation to the illicit stores popping up all around the province. Just wanted to ask if you have been seeing similar pressures on your retail stores as a result of this illicit market that's popping up again and what your thoughts are going forward in terms of the provincial regulators coming in to regulate these illegal stores?

第二個問題是關於大麻藥局的零售環境。您的幾位同事提到了他們在安大略省看到的一些壓力，特別是與全省各地湧現的非法商店有關的壓力。我只是想問一下，由於這個非法市場再次出現，您的零售店是否也面臨類似的壓力，對於省級監管機構即將出台規範這些非法商店的措施，您有何看法？

It's a great question. It's also a very difficult question. The impact of the illicit market in the Canadian -- within the Canadian landscape has been constant. I wouldn't say that there's some new emergence of headwinds. They've been there in different forms in most provinces.

這是一個很好的問題。這也是一個非常難的問題。加拿大境內非法市場的影響一直持續存在。我不會說出現了一些新的不利因素。它們以不同的形式出現在大多數省份。

What we do know is that there is some degree of enforcement happening, and we've seen pockets and incidents that are encouraging in terms of our provincial government's willingness to stamp out the illicit market.

我們所知道的是，某種程度的執法正在進行，而且我們看到一些令人鼓舞的事件，表明我們省政府願意剷除非法市場。

We still need broader regulatory change to help support that. And we believe that you're going to see additional rational reform come through in 2025. Even something as small as changing the limits on edibles from 10 milligrams to 100 would have a material impact on illicit market trade. Again, no one's coming to save us here. So what we do know is that convenience and value are winning with the consumer at the end of the day, and we're able to offer a very competitive selection that is delighting consumers.

我們仍然需要更廣泛的監管變革來幫助支持這一點。我們相信，2025 年你將會看到更多合理改革的推出。即使是像將食用限量從 10 毫克改為 100 毫克這樣小的事情也會對非法市場貿易產生重大影響。再說了，沒有人來救我們。因此，我們知道，最終贏得消費者的是便利性和價值，而我們能夠提供非常有競爭力的選擇，讓消費者滿意。

And so we're going to continue to focus on being strong competitors in the legal market.

因此，我們將繼續致力於成為合法市場的強大競爭對手。

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

（操作員指示）問答環節到此結束。我想將會議交還給扎克喬治 (Zach George) 來做結束語。

Thank you, operator, and thank you to everyone for joining us for the call. We look forward to updating you in the coming months. Have a great day.

謝謝接線員，也謝謝大家參加我們的通話。我們期待在接下來的幾個月內向您提供最新資訊。祝你有美好的一天。

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。您可以斷開您的線路。感謝您的參與，祝您有個愉快的一天。