SNDL Inc (SNDL) 2025 Q3 法說會逐字稿

Good morning and welcome to SNDL's 3rd quarter 2025 financial results conference call.

早安，歡迎參加SNDL 2025年第三季財務業績電話會議。

This morning, SNDL issued a press release announcing their financial results for the 2025 3rd quarter ended on September 30, 2025. This press release is available on the company's website at SNL.com and filed on Edgar and Cedar as well.

今天上午，SNDL 發布新聞稿，公佈了截至 2025 年 9 月 30 日的 2025 年第三季財務業績。本新聞稿可在公司網站 SNL.com 上查閱，並已在 Edgar 和 Cedar 上備案。

The webcast replay of the conference will also be available on the SNL.com website.

本次會議的網路直播回放也將在 SNL.com 網站上提供。

SNDL has also posted a supplemental investor presentation in addition to the conference call presentation we will be reviewing today on its SNL.com website. Presenting on this morning's call, we have Zach George, Chief Executive Officer, and Alberto Pereo, Chief Financial Officer.

除了我們今天將要討論的電話會議簡報外，SNDL 還在其 SNL.com 網站上發布了一份補充投資者簡報。今天早上的電話會議上，我們有執行長 Zach George 和財務長 Alberto Pereo 出席。

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 the company's financial reports and other public filings that are made available on Cedar and Edgar. Additionally, all financial figures mentioned are in CAD unless otherwise indicated.

在會議開始之前，我想提醒各位投資者，今天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。可能影響業績的風險因素在公司的財務報告和其他公開文件中均有詳細說明，這些文件可在 Cedar 和 Edgar 上查閱。此外，除非另有說明，所有提及的財務數據均以加幣 (CAD) 為單位。

We will now make Prepared remarks and then we'll move to analyst questions.

接下來我們將作準備好的發言，然後進入分析師提問環節。

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

現在我將把通話交給扎克喬治。請繼續。

Welcome to SNDL's 3rd quarter 2025 financial and operational results conference call.

歡迎參加SNDL 2025年第三季財務與營運業績電話會議。

The 3rd quarter of 2025 marks another milestone for SNDL as we report record quarterly free cash flow and for the first time in our history, positive cumulative free cash flow for the 1st 9 months of the year.

2025 年第三季對 SNDL 而言又是一個里程碑，我們報告了創紀錄的季度自由現金流，並且有史以來第一次實現了今年前 9 個月的累計自由現金流為正。

We also continue to report sustained double-digit revenue growth in our combined cannabis segment, underscoring the strength of our ongoing operational and profitability improvements.

我們的大麻業務部門也持續保持兩位數的持續營收成長，凸顯了我們持續改善營運和獲利能力的強勁勢頭。

Beyond our ability to generate cash, which in our view is the ultimate measure of a business's fundamentals, we are also seeing numerous bright spots in our income statement.

除了我們創造現金的能力（我們認為這是衡量企業基本面的最終標準）之外，我們還在損益表中看到了許多亮點。

These include robust growth in our cannabis segments, margin expansion across our retail operations, and reductions in SG&A expenses. Collectively, these factors translate into continuous improvements in our financial performance.

這些包括大麻業務的強勁成長、零售業務利潤率的提高以及銷售、一般及行政費用的降低。綜合來看，這些因素會轉化為我們財務表現的持續改善。

Despite our progress in operations and our strengthened competitive position, this quarter's P&L reflects the impact of 11.9 million in unfavorable non-cash items. These were triggered by increases in our stock valuation, as well as inventory and fixed asset impairments, resulting in a reported offering loss of 11 million.

儘管我們在營運方面取得了進展，並且我們的競爭地位得到了加強，但本季的損益表反映了1190萬不利非現金項目的影響。這些損失是由股票估值上升以及庫存和固定資產減損引起的，導致報告的發行損失達 1,100 萬美元。

For those who are unfamiliar, our unvested long-term incentive equity grants show up as a liability on our balance sheet. So when our stock price increases, we have to take a negative charge to operating income in order to reflect the increased value of that liability.

對於不熟悉相關規定的人來說，我們尚未歸屬的長期激勵股權授予在我們的資產負債表上顯示為負債。因此，當我們的股價上漲時，我們必須在營業收入中提列負值，以反映該負債價值的增加。

These non-cash items and the volatility inherent to our industry should not overshadow the undeniable operational improvements we have achieved. We also continue to leverage the strategic advantage provided by our strong balance sheet with no debt and over $240 million in unrestricted cash as we build a resilient, growth-oriented, and profitable business.

這些非現金項目以及我們行業固有的波動性不應掩蓋我們所取得的無可否認的營運改善。我們將繼續利用我們強大的資產負債表（無債務，擁有超過 2.4 億美元的非限制性現金）所帶來的戰略優勢，打造一個具有韌性、以成長為導向且獲利的業務。

To this last point, during the 3rd quarter, we continue to support the regulatory review process in Ontario, which is the final step before closing the acquisition of 32 1 cm cannabis stores.

關於最後一點，在第三季度，我們繼續支持安大略省的監管審查程序，這是完成對 32 家 1 公分大麻商店的收購之前的最後一步。

We also accelerated our investment pace to support the opening of 5 new cannabis stores and 2 new wine and Beyond stores during the 4th quarter. Additionally, we completed the ramp up of our Atholville cultivation facility to support international growth, and we are now making further investments in its infrastructure.

我們還加快了投資步伐，以支持在第四季度開設 5 家新的大麻商店和 2 家新的葡萄酒及其他商品商店。此外，我們已完成阿索維爾種植設施的擴建，以支持國際業務成長，目前我們正在對其基礎設施進行進一步投資。

Last but not least, beyond strengthening our competitive position in Canada, the company continues to work to resolving the ongoing litigation required to complete the Sunstream restructurings. These restructurings are expected to provide shareholders with exposure to dynamic medical markets, including Florida and Texas.

最後但同樣重要的是，除了加強我們在加拿大的競爭地位外，公司還繼續努力解決完成 Sunstream 重組所需的持續訴訟。預計這些重組將使股東有機會接觸到充滿活力的醫療市場，包括佛羅裡達州和德克薩斯州。

I'll pass the call to Alberto now for more insights on our 3rd quarter financial performance.

現在我將把電話轉給阿爾貝托，讓他更詳細地介紹我們第三季的財務表現。

Thank you, Zach. I want to remind everyone that the amounts discussed today are denominated in CAD unless otherwise stated. Certain figures referred to in 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，除非另有說明，今天討論的金額均以加幣計價。本次電話會議中提到的某些數據為非GAAP和非IFRS指標。有關這些措施的定義，請參閱SNDL的管理階層討論與分析文件。

Our 3rd quarter financial results represent another step forward in profitability, particularly in terms of free cash flow generation.

我們第三季的財務表現表明，在獲利能力方面又向前邁進了一步，尤其是在自由現金流產生方面。

Net revenue for the third quarter of 2025 reached 244 million, reflecting a 3.1% increase compared to Q3 of last year.

2025 年第三季淨收入達 2.44 億，比去年第三季成長 3.1%。

This growth was driven by our cannabis segments while the liquor segment continues to navigate market headwinds.

這一成長主要得益於我們的大麻業務，而酒類業務則繼續面臨市場逆風。

Gross profit of 64.2 million represents a 1.2 million increase or 1.9% growth year over year, despite being impacted by 3.9 million in non-cash inventory related adjustments within cannabis operations.

儘管受到大麻業務中 390 萬非現金庫存相關調整的影響，毛利仍達到 6,420 萬，比上年同期增加了 120 萬，增幅為 1.9%。

This inventory adjustments reduced gross margin by 160 basis points, more than offsetting the strong margin expansion in both liquor and cannabis retail segments.

這項庫存調整導致毛利率下降了 160 個基點，完全抵消了酒類和零售大麻業務的強勁毛利率成長。

As a result, consolidated gross margin declined 30 basis points compared to the prior year.

因此，合併毛利率較前一年下降了30個基點。

Operating income was affected by non-cash adjustments totaling 11.9 million.

營業收入受到總額為 1,190 萬的非現金調整的影響。

In addition to the $3.9 million inventory that Jasmin mentioned earlier, the 121% share price increase during the third quarter triggered a $6.8 million increase in share-based compensation liability.

除了 Jasmin 先前提到的 390 萬美元庫存外，第三季股價上漲 121% 還導致股權激勵負債增加了 680 萬美元。

Finally, we recorded a net of 1.6 million fixed asset impairment mostly driven by the idol skeleton facility.

最後，我們記錄了 160 萬固定資產減損淨額，主要原因是偶像骨架工廠的減損。

These three factors fully explain the reported operating loss of 11 million.

這三個因素完全解釋了報告的 1,100 萬營業虧損。

When excluding a $1.5 million restructuring charge, adjusted operating income ended at a loss of 9.5 million.

扣除 150 萬美元的重組費用後，調整後的營業收入虧損 950 萬美元。

Yet this represents a 7.1 million improvement of 42.7% compared to last year.

然而，與去年相比，這代表710萬人的改善，增幅達42.7%。

Free cash flow is the main highlight of the quarter with a positive 16.7 million.

自由現金流是本季的主要亮點，為正1670萬。

In addition to the 7.5 million improvement compared to the same period last year, these strong Q3 results enable us for the first time in our history to achieve positive cumulative free cash flow for the first nine months of the year, totalling 7.7 million year-to-date.

與去年同期相比，第三季業績成長了 750 萬，這也使我們歷史上首次實現了今年前九個月的累計自由現金流為正，年初至今累計自由現金流達 770 萬。

When reviewing our four year historical performance, we continue to demonstrate a clear upward trajectory, reflecting our sustained focus on growth and improved operational efficiency.

回顧過去四年的業績，我們持續展現出明顯的上升趨勢，這反映了我們對成長和提高營運效率的持續關注。

Additionally, we can observe the seasonality of free cash flow between the 1st and second half of the year.

此外，我們還可以觀察到上半年和下半年自由現金流的季節性變化。

With a consistent upward trend over time.

長期呈現持續上升趨勢。

When analyzing the contributions from each segment across our main financial KPIs, we can clearly see that net revenue growth was driven by our cannabis segments, partly upset by liquor retail.

透過分析各業務部門對我們主要財務KPI的貢獻，我們可以清楚地看到，淨收入成長是由我們的大麻業務板塊推動的，但受到酒類零售業務板塊的干擾。

The revenue elimination for cannabis is related to the sales from the cannabis operation segment into our own retail. As in previous quarters, this elimination is increasing as a result of our cannabis business growth.

大麻業務的收入減少與大麻營運部門向我們自己的零售通路的銷售額有關。與前幾季一樣，由於我們的大麻業務成長，這種淘汰率也在上升。

Adjusted operating income shows a solid improvement compared to the prior year, although there is some noise related to non-cash adjustments in both periods.

調整後的營業收入與前一年相比有顯著改善，儘管兩個時期都存在一些與非現金調整相關的干擾因素。

Liquor Riter posted a small decline of 0.6 million as gross margin and SG&A improvements were upset by revenue declines and the lapping of a 1.2 million favorable fixed asset impairment reversal recorded in 2024.

Liquor Riter 公佈的業績小幅下滑 0.6 百萬，原因是毛利率和銷售、一般及行政費用的改善被收入下降以及 2024 年記錄的 1.2 百萬有利固定資產減值沖回所抵消。

Cannabis retail delivers strong operating income growth driven by revenue gains, gross margin expansion, and SG&A efficiencies.

大麻零售業務的營業收入成長強勁，這得益於收入成長、毛利率擴張以及銷售、管理及行政費用的提高。

Additionally, this quarter included a 1 million reversal for asset impairments recorded several years ago.

此外，本季還包括對幾年前記錄的資產減損進行100萬美元的衝回。

Cannabis operations reported negative operating growth, primarily due by the 3.9 million inventory evaluation adjustments and the 2.7 million fixed asset impairment related to the IO Stellerton facility.

大麻業務報告稱營運成長為負，主要原因是 390 萬庫存評估調整和與 IO Stellerton 工廠相關的 270 萬固定資產減損。

The investment segment shows significant favorability year over year.

投資板塊較去年同期呈現顯著成長動能。

As last year included an unfavorable valuation adjustment from the Sunstream investment portfolio.

去年，Sunstream 投資組合的估值進行了不利調整。

Finally, despite meaningful cost reductions in the corporate segment, the 6.8 million increase in share-based compensation triggered by the 121% rise in our share price in the third quarter resulted in a 2.2 million unfavorable movement year over year.

最後，儘管公司部門大幅削減了成本，但由於第三季股價上漲 121%，導致股權激勵支出增加了 680 萬英鎊，造成年比不利變動 220 萬英鎊。

Clearly, there are numerous atypical adjustments impacting the 3rd quarter in both years.

顯然，這兩年的第三季都受到許多非典型調整的影響。

When we strip away this noise, the underlying improvement in operating income becomes evident.

剔除這些幹擾因素後，營業收入的根本改善就顯而易見了。

Both the 3rd quarter and the year-to-date free cash flow results are the key highlights.

第三季和年初至今的自由現金流業績都是本次報告的重點。

It's representing historic records for the company.

它代表了該公司的歷史記錄。

In the third quarter, the negative income of 13.3 million was driven by the different non-cash adjustments previously mentioned, which leads to the high amount of $30.8 million in non-cash adbacks.

第三季度，1330萬美元的負收入是由前面提到的各種非現金調整造成的，這導致了高達3080萬美元的非現金調整返還。

Inventory and other working capital follow the regular seasonality as the investments in the first half of the year start being offset as of the 3rd quarter.

庫存和其他營運資金遵循正常的季節性規律，因為上半年的投資從第三季開始被抵銷。

We're also seeing the higher amount of CapEx and least payments in the 3rd quarter compared to the previous two quarters, driven by the incremental capital investments for the anticipated store openings in the 4th quarter.

與前兩個季度相比，第三季資本支出較高，而付款額最低，這是由於預計第四季度新店開業需要增加資本投資所致。

This strong Q3 free cash flow results is allowing us to report for the first time in our history positive cumulative free cash flow in the first nine months of the year with a total of 7.7 million.

第三季強勁的自由現金流業績使我們能夠首次在今年前九個月實現累計自由現金流為正，總額達 770 萬美元。

Looking closer at the three operating segments, starting with liquor retail, we see that the segment delivered net revenue of $139.4 million in the third quarter, a 3.6% year over year decline as it continues to face market headwinds.

仔細觀察這三個營運部門，首先是酒類零售，我們發現該部門第三季淨收入為 1.394 億美元，年減 3.6%，因為它繼續面臨市場不利因素。

Gross profits of 36.7 million represents a modest reduction of 0.2 million compared to the prior year, as the revenue decline was almost fully offset by 80 basis point improvement in gross margin, which reached 26.3%, a new historic record for the segment.

毛利為 3,670 萬，比上年略微減少了 20 萬，因為收入下降幾乎完全被毛利率 80 個基點的提高所抵消，毛利率達到 26.3%，創下該業務板塊的新歷史紀錄。

Operating income came in at 11.2 million, a decrease of 0.6 million compared to last year.

營業收入為1120萬，比去年減少了60萬。

While the record gross margin and further reduction in SG&A spending provided support, these gains were upset by the lapping of a 1.2 million in fixed asset impairment reversals recorded in 2024.

雖然創紀錄的毛利率和銷售、一般及行政費用的進一步減少提供了支撐，但這些收益被 2024 年記錄的 120 萬固定資產減值衝回所抵消。

Cannabis retail delivered outstanding results in the third quarter.

第三季度，大麻零售業務取得了優異的業績。

Net revenue of $85 million represents a new record for the segment, supported by a 4.8% year over year growth, driven primarily by a 3.6% increase in same store sales.

淨收入達到 8,500 萬美元，創下該業務類股的新紀錄，年增 4.8%，主要得益於同店銷售額成長 3.6%。

Gross profit of 22.5 million is also historic high for the segment, reflecting an 8.5% increase compared to last year, supported by a 90 basis points improvement in gross margins.

該業務板塊的毛利達到 2,250 萬，創歷史新高，較去年增長 8.5%，毛利率提高了 90 個基點。

Finally, both operating income and adjusted operating income reached new records for the segment, driven by revenue growth, margin expansion, and SG&A optimization.

最後，在營收成長、利潤率擴大和銷售、管理及行政費用優化的推動下，該部門的營業收入和調整後營業收入均創下新紀錄。

Operating income of 9.1 million, more than double compared to last year. Further benefiting from a 1 million fixed asset impairment reversals recorded in the quarter.

營業收入達910萬，比去年翻了一番還多。此外，本季也受惠於100萬固定資產減損撥回。

Our cannabis operation segment delivered mixed results as a result of non-cash adjustments impacting the 3rd quarter, masking the underlying improvements.

由於非現金調整影響了第三季度，我們的大麻業務部門業績喜憂參半，掩蓋了潛在的改善。

Net revenue for the third quarter of 2025 was 37.4 million, also a new record for the segment, reflecting a 12.4 million or 50% growth compared to the prior year.

2025 年第三季淨收入為 3,740 萬美元，也創下了該部門的新紀錄，與去年同期相比增長了 1,240 萬美元，增幅達 50%。

This growth was driven by edibles following the acquisition of Endiva in the fourth quarter of 2024, as well as the accelerating international sales that reached 4.2 million in the quarter.

這項成長主要得益於2024年第四季收購Endiva後可食用產品的銷售，以及該季度國際銷售額加速成長，達到420萬人。

Gross profit was impacted by 3.9 million inventory write-offs and valuation adjustments primarily related to the cultivation ramp up at our Ale facility.

毛利受到 390 萬庫存減損和估值調整的影響，這主要與我們 Ale 工廠的種植規模擴大有關。

Growth margin ended up at 13.4% in the quarter, as the inventory adjustments had a negative impact of 10.4% points to the margin of the segment.

本季成長利潤率最終為 13.4%，因為庫存調整對該業務板塊的利潤率產生了 10.4 個百分點的負面影響。

Finally, adjusted operating income also reflects a 2.7 million fixed asset impairment related to the sterleton idol facility.

最後，調整後的營業收入也反映了與斯特爾頓偶像工廠相關的 270 萬固定資產減損。

The total of $6.6 million in unfavorable inventory and fixed asset non-cash adjustments resulted in the negative 4.8 million adjusted operating income.

總計 660 萬美元的不利存貨和固定資產非現金調整導致調整後營業收入為負 480 萬美元。

Over to use act for additional comments related to our strategic priorities.

接下來，我們將使用 Act 來發表與我們的策略重點相關的其他意見。

Looking at the progress we've made towards our three strategic priorities, growth, profitability, and people. There are several highlights I'd like to point out. Let's start with growth.

看看我們在實現成長、獲利能力和人才這三大策略重點方面所取得的進展。我想指出幾個亮點。讓我們從成長開始。

Our cannabis retail segment continues to outperform the market, achieving 3.6% same source sales growth in the third quarter and contributing to an additional 12 basis point gain in market share.

我們的零售大麻業務持續跑贏市場，第三季同店銷售額成長 3.6%，市佔率也因此成長了 12 個基點。

Despite softness in the liquor market, our Wine and Beyond banner continues to demonstrate strength with 2.9% same for sales growth, supported by double-digit growth in private label sales.

儘管酒類市場疲軟，但我們的 Wine and Beyond 品牌仍保持強勁勢頭，銷售額較去年同期成長 2.9%，這得益於自有品牌銷售額的兩位數成長。

As mentioned in previous calls, we've accelerated organic capital investments in new store expansion. In addition to the 2 cannabis stores open during the 3rd quarter, we anticipate opening 5 new cannabis stores and 2 new wine and Beyond stores in the 4th quarter.

正如先前電話會議中提到的，我們已經加快了對新店擴張的有機資本投資。除了第三季開設的 2 家大麻商店外，我們預計在第四季度開設 5 家新的大麻商店和 2 家新的葡萄酒及其他商品商店。

It is also encouraging to see strong 50% revenue growth from our cannabis operation segment driven by market leadership in edibles following the acquisition of Endiva in the fourth quarter of last year, as well as continued growth in international sales, which reached 4.2 million in the third quarter.

令人鼓舞的是，在去年第四季收購 Endiva 後，我們的大麻業務部門在食用產品領域佔據市場領先地位，收入實現了強勁增長 50%，國際銷售額也持續增長，第三季度達到 420 萬美元。

Shifting to profitability, the most significant highlight is the generation of $17 million in free cash flow during the quarter, enabling us to achieve positive year-to-date free cash flow of 7.7 million at the end of the third quarter for the very first time in our history. This was accomplished through revenue and margin expansion, coupled with working capital optimization, despite incremental CapEx investments to fund future growth.

談到獲利能力，最顯著的亮點是本季度產生了 1700 萬美元的自由現金流，使我們在第三季末實現了 770 萬美元的年初至今正自由現金流，這在我們公司歷史上尚屬首次。這是透過擴大收入和利潤率，並優化營運資本來實現的，儘管增加了資本支出投資以資助未來的成長。

While adjusted offering income remains negative due to the previously mentioned non-cash items reflected in the quarter, it did grow by 43% compared to the prior year, supported by revenue growth, retail margin expansion, and reductions in G&A costs.

儘管由於本季度反映的上述非現金項目，調整後的發行收入仍為負值，但與上年相比增長了 43%，這得益於收入增長、零售利潤率擴張以及一般及行政費用的減少。

On that point, G&A expenses in the 3rd quarter were $4 million lower than last year, as our $5 million of productivity savings more than offset inflationary pressures.

就這一點而言，第三季的一般及行政費用比去年減少了 400 萬美元，因為我們透過提高生產力節省的 500 萬美元足以抵消通膨壓力。

Additionally, data licensing revenue contributed 4.6 million in the quarter, providing further support for gross margin expansion.

此外，數據授權收入在本季貢獻了 460 萬美元，進一步支撐了毛利率的擴張。

Foundational to all of these improvements is our people's strategic priority.

所有這些改進的基礎是我們員工的策略優先事項。

During the 3rd quarter, we continue to enhance the deployment of talent cards and development conversations, a key step in our strategic talent review process.

在第三季度，我們將繼續加強人才卡和發展對話的部署，這是我們策略性人才評估流程的關鍵一步。

We also launched a recruitment efficiencies project to streamline hiring and improve the experience for recruiters, hiring managers, and candidates through automated workflows.

我們還啟動了一個招募效率提升項目，旨在透過自動化工作流程簡化招募流程，改善招募人員、招募經理和候選人的體驗。

Additionally, we introduced a monthly leadership development series, a new networking forum where leaders share personal and professional experiences and discuss our strategic priorities.

此外，我們還推出了每月一次的領導力發展系列活動，這是一個全新的交流論壇，領導者可以分享個人和職業經驗，並討論我們的策略重點。

As we focus on driving strong execution in the 4th quarter and a strong finish to the year, we are also encouraged by the many opportunities and execution plans our teams are developing for 2026, taking us step by step closer to our ambition to become a global cannabis leader.

在我們專注於推動第四季度強勁執行力並為全年圓滿成功的同時，我們也對團隊正在為 2026 年制定的眾多機遇和執行計劃感到鼓舞，這些計劃正一步步將我們推向成為全球大麻領導者的雄心壯志。

Once again, I'd like to thank our entire team for their contributions and our shareholders for their continued trust.

我再次感謝我們整個團隊的貢獻，以及股東們一直以來的信任。

I will now hand the call back to the operator for the analyst Q&A session.

現在我將把電話轉回給接線員，進行分析師問答環節。

Thank you, and we will now begin our analyst Q&A session. In order to join the Q&A, please press 11 on your telephone.

謝謝，現在我們將開始分析師問答環節。若要參與問答環節，請按電話上的 11。

You will then hear an automated message advising that your hand is raised.

然後您會聽到一條自動語音訊息，告知您已舉手。

Also, if you are on speakerphone, please pick up the handset before pressing any keys. To a story a question, press 11 again. One moment while we can pull the Q&A roster.

另外，如果您正在使用免持通話，請在按任何按鍵之前拿起聽筒。故事的提問，請再按 11。請稍等片刻，我們調出問答環節名單。

And the first question today will be coming from the line of Aaron Gray of Alliance Global Partners. Please go ahead.

今天第一個問題將來自 Alliance Global Partners 的 Aaron Gray。請繼續。

Hi, good morning and thank you very much for the questions and I see some more of the cash flow generation. First question for me, I just want to kind of strip out, some of the one offs, make sure we have a good understanding of how best thing about the business going forward. So particularly for cannabis operations, included the write offs for for inventory, within that. So just want to clarify there from the prepared remarks was it only the 3.9 inventory and the gross margin and. The 1.6 million fixed asset that's SG&A and not in gross margin. So want to clarify that point. And then secondly, you know how best to think about the gross margin specifically for the cannabis operations, going forward, if both of those are added back, it gets you back to that 29% gross margin from prior quarter if just inventory it gets you more to the mid-20s. So I just want to get a better understanding of how to think about that on a go forward basis.

您好，早安，非常感謝您的提問，我看到了一些關於現金流生成的資訊。我的第一個問題是，我想排除一些個別情況，確保我們對企業未來發展的最佳方向有一個清晰的了解。因此，特別是對於大麻業務而言，其中也包括了庫存的註銷。所以我想澄清一下，根據準備好的演講稿，是否只有 3.9 的庫存和毛利率？這160萬固定資產屬於銷售、一般及行政費用，不計入毛利。所以我想澄清一下這一點。其次，要具體考慮大麻業務的毛利率，最好是把這兩項都加回去，這樣就能恢復到上一季的 29% 毛利率；如果只考慮庫存，毛利率就能達到 20% 左右。所以我想更能理解今後該如何看待這個問題。

Thank you.

謝謝。

Hi, good morning and thank you for the question. So yes, I confirmed the, 3.9 million of inventory adjustments that obviously is impacting gross profit, and it has an impact of about 10.6% points in the margin of the segment. The other one-time adjustment that we saw in the quarter is the facility, impairment. It's a 2.7 million charge. That happened below, gross profits, so it's in other increment expenses, so it's part of operating income, but not reflected in the gross margin. So the total of those two things obviously are impacting operating income, but the only impact to gross profit is based on the inventory adjustment. Without those adjustments, we would have been at around 25% margin in the segment, which is what we're expecting. We have seen in round about that number in the last couple of quarters and we're expecting that to be the low end of the ranges for the future.

您好，早安，感謝您的提問。是的，我確認了390萬的庫存調整，這顯然會影響毛利，並且對該業務部門的利潤率產生了約10.6個百分點的影響。本季我們看到的另一個一次性調整是設備減損。這是一筆270萬的指控。這種情況發生在毛利下方，因此它屬於其他增量費用，因此它是營業收入的一部分，但並未反映在毛利率中。因此，這兩個因素加起來顯然會對營業收入產生影響，但對毛利的影響僅限於庫存調整。如果沒有這些調整，我們在該領域的利潤率應該在 25% 左右，這也是我們所期望的。過去幾季我們看到的數字大致都在這個範圍內，我們預計這將是未來數字範圍的下限。

Okay, great, thanks for that color.

好的，太好了，謝謝你提供的顏色。

Sales to provincial boards saw some nice growth both on a quarter over quarter and a year over year basis.

對省級委員會的銷售額無論環比還是同比增長，都取得了不錯的增長。

Any specific drivers there and anything to think about in terms of the mix within that shipment timing for how we think about that line segment going forward because it does seem like that growth outpaced some of what we're seeing from the third-party POS data.

是否有任何具體的驅動因素，以及在發貨時間方面有哪些需要考慮的因素，以便我們更好地考慮該產品線未來的發展，因為看起來該增長速度超過了我們從第三方 POS 數據中看到的一些增長速度。

Mm Yes, indeed we're seeing the same softness overall in the sales to the provincial boards, from cannabis operations. We know that it's not driven by our own segments, as we continue to gain momentum there and we continue to see growth, but we have seen some softness in third-party retail. Obviously, we don't have full visibility to the, inventory numbers at the provincial ports. So an element of the slowdown could be as well driven by that, but overall as that we have seen, over the last couple of quarters, a slowdown in in third-party retail, that we're working on, obviously trying to create, some additional momentum and with the changes in new products and innovation, we believe that we're going to be regaining momentum there.

嗯，是的，我們確實看到，來自大麻企業的對省級委員會的銷售整體上也出現了同樣的疲軟態勢。我們知道這並非由我們自身的業務板塊驅動，因為我們在這些板塊持續獲得成長勢頭，並且持續看到成長，但我們看到第三方零售業務出現了一些疲軟。顯然，我們無法完全掌握各省港口的庫存數量。因此，部分放緩因素可能也由此產生，但總體而言，正如我們在過去幾個季度所看到的，第三方零售業務有所放緩，我們顯然正在努力創造一些額外的動力，隨著新產品和創新的出現，我們相信我們將重新獲得動力。

And just to add to Alberto's comments and good morning, thanks for the questions. We are seeing great progress in specific categories including edibles, free roll and vape, and so that's enabled us to keep a great pace relative to the broader market.

我只想補充一下 Alberto 的評論，早安，感謝大家的提問。我們在食用產品、自由捲菸和電子煙等特定類別中取得了巨大進展，因此，我們能夠相對於整個市場保持快速成長。

Okay, great, thanks for that. Last one for me, I know you've been, increasing your efforts internationally. I think you said 4.2% in the quarter. So how best to think about, international sales going forward? How big of a part of the business do you feel like that could be, within the next 12 to 18 months?

好的，太好了，謝謝。最後一個問題，我知道你一直在加大國際的投入。我想你之前說的是季度成長率為 4.2%。那麼，展望未來，我們該如何更好地看待國際銷售呢？您認為在未來 12 到 18 個月內，這會在業務中佔據多大的份額？

It does keep to, continue to gain momentum. We have been increasing quarterly over quarter, since the beginning of the year. We have a strong demand, we have a lot of purchase orders, for the fourth quarter as well. We are bullies as well, with the outlook, for 2026. A lot of our international partners. They are exploring options to continue increasing purchases from us. They're struggling with reliability of supply from some of their other partners that they have and they have been very pleased with with our performance so far. So, yeah, we believe and we're anticipating that that number will continue growing in the future.

它確實保持著這種勢頭，並且繼續發展壯大。自年初以來，我們的業績每季都在成長。我們需求強勁，訂單很多，第四季也是如此。展望 2026 年，我們也是霸凌者。我們有很多國際合作夥伴。他們正在探索各種方案，以繼續增加從我們這裡採購的商品數量。他們正努力解決一些合作夥伴供貨可靠性方面的問題，但他們對我們目前的表現非常滿意。是的，我們相信並預期這個數字未來會繼續成長。

Good it's worth mentioning that we are continuing to ramp production at our Aleville, New Brunswick facility that benefits from extremely attractive relative power pricing. And so we should see monthly production based on our targets north of 15,000 kg a month in 2026. And so we expect the bulk of that biomass to be directed at international markets and there's a number of other both 2.0 and other growth opportunities that we're looking at.

值得一提的是，我們正在繼續提高位於新不倫瑞克省阿萊維爾工廠的產量，該工廠受益於極具吸引力的相對電力價格。因此，根據我們的目標，到 2026 年，每月產量應該會超過 15,000 公斤。因此，我們預計大部分生物質將銷往國際市場，我們也正在關注許多其他 2.0 和其他成長機會。

Okay great thanks for that call I'll go and jump back into the queue.

好的，非常感謝您的來電，我這就重新排隊。

Thank you. As a reminder, if you would like to ask a question, please press 11 on your telephone. One moment for the next question.

謝謝。再次提醒，如果您有任何疑問，請按電話上的 11。稍等片刻，準備回答下一個問題。

Our next question will be coming from the line of Federico Gomez of ATB Capital Markets. Your line is open.

下一個問題將來自 ATB Capital Markets 的 Federico Gomez。您的線路已開通。

Morning, thanks for taking my questions.

早上好，謝謝您回答我的問題。

First question just on the the Motm transaction that still hasn't closed you said we're waiting regular for approval in Ontario. So is there anything specific that's been an issue with that approval? I'm just thinking about the previous history here back when you had the transaction, and I believe that there was a hold up there in Ontario. So just, any comments on that.

第一個問題是關於尚未完成的 Motm 交易，您說我們正在等待安大略省的常規批准。那麼，在審批過程中是否存在什麼具體問題呢？我只是在回想之前你們進行交易時的情況，我相信當時在安大略省那邊遇到了一些阻礙。所以，大家對此有什麼看法嗎？

Thanks for the question, Fred and good morning. We don't have any additional information to share. We thought this would be the review would be completed late October, it's early November. There are a number of, retail licenses, both, applications that have been submitted, by.

謝謝你的提問，弗雷德，早安。我們沒有其他資訊可以分享。我們原以為這項審查會在十月下旬完成，現在都十一月初了。目前已提交了多份零售許可證申請。

Affiliated entities as well as third parties that are, still moving to the pipeline in Ontario, so we'll update the market, as soon as we have greater clarity.

關聯實體以及第三方仍在向安大略省的管道轉移，因此一旦我們有了更清晰的信息，我們將立即向市場更新情況。

Thank you. And then second question just on cannabis retail, I guess we saw good Samsar sales growth this quarter again, record numbers and gross profilebrating coming as well. Just, broader comments about what you're seeing in that market right now. Are you seeing opportunities to increase prices and margins? Are you seeing a good pipeline of M&A? Or it's going to be concentrated more on organic growth, obviously excluding the 1cm transaction, just some broader color on the outlook for Canada's retail in Canada right now. Thanks.

謝謝。第二個問題是關於大麻零售的，我想我們本季再次看到了 Samsar 良好的銷售成長，創紀錄的數字和毛利成長也即將到來。請就您目前在該市場觀察到的情況發表一些更廣泛的評論。您是否看到了提高價格和利潤率的機會？您認為併購專案儲備充足嗎？或者，它將更多地集中於有機成長，顯然不包括對 1cm 的交易，只是對目前加拿大零售業前景的一些更廣泛的描述。謝謝。

It's a great question. We are seeing maturity. It's really a province by province assessment. We've seen, extreme saturation start to settle in Alberta, and as you well know, Federico, Alberta was one of the quickest provinces out of the gate in terms of its pace of door count growth.

這是一個很好的問題。我們正在見證成熟。這其實是逐個省份進行的評估。我們已經看到，阿爾伯塔省的市場開始出現極度飽和的局面，而且正如你所知，費德里科，阿爾伯塔省是入戶數量增長速度最快的省份之一。

You're seeing signs emerging of maturity in markets like Ontario as well, although there's still, we still think there's opportunity there. And I think that the days of easy kind of double-digit high single-digit same sort sales growth upon opening locations and managing discount retail strategy are going to be in the rearview very quickly execute. On the floor and owning the consumer relationship with a very convenient and attractive experience for customers, is critical at this point. So, we are very much focused on our consumer and owning that relationship.

您也看到像安大略省這樣的市場出現了成熟的跡象，儘管仍然存在，我們仍然認為那裡有機會。我認為，透過開設門市和管理折扣零售策略，輕鬆實現兩位數或個位數銷售成長的日子很快就會成為過去。在銷售一線，透過為顧客提供非常便捷和有吸引力的體驗來建立和維護與顧客的關係，在這一點上至關重要。因此，我們非常注重消費者，並致力於維護與消費者的關係。

Yeah, I would add, if you compare, to the same period of last year, you have probably noticed in the third quarter that our same store sales have slowed down somewhat compared to the first half of the year. On the other side, we're seeing a significant increase on 90 basis points improvement in, gross margin. The main reason last year as of the 3rd quarter we started to run more aggressive promotional activities that obviously pusho a little bit the top-line. But, tempered the gross margin, as we are lapping that, strong promo activity this year, we're see the margin progression, but we see somehow a little bit of a slowdown on terms of sales revenue growth. It will probably be a similar dynamic in the 4th quarter, but we still see some, we see margins somewhat stabilizing for the long run. There's always an opportunity to increase efficiencies and manage mix a little bit better and gain marginally on the growth margin, but clearly, yes, as Zach said on the revenue growth and the market growth, we're assuming and we're expecting, it would stay in the low single-digit going forward.

是的，我還要補充一點，如果與去年同期相比，您可能已經注意到，第三季我們同店銷售額與上半年相比有所放緩。另一方面，我們看到毛利率顯著提高了 90 個基點。去年第三季度，我們開始進行更積極的促銷活動，這顯然在某種程度上推動了營收成長，而主要原因就是這些活動推動了營收成長。但是，由於今年促銷活動強勁，毛利率下降，我們看到毛利率提高，但銷售收入成長卻略有放緩。第四季的情況可能類似，但我們仍然看到利潤率在長期內會趨於穩定。總是有機會提高效率，更好地管理產品組合，並在成長幅度上略有提升，但顯然，正如 Zach 所說，關於收入成長和市場成長，我們假設並預計，未來成長率將保持在個位數低點。

Thank you then. That's very helpful. And then just the final question, just I guess related to that as well, just on the rise rewards program, now that you have some more time with that, anything you can share in terms of how the rollouts occurring, relative to your expectations and any data points, regarding members of the program, economics, etc. Thanks.

謝謝。那很有幫助。最後一個問題，我想也與此相關，關於“Just on the Rising”獎勵計劃，既然您現在有更多的時間來了解它，您能否分享一下該計劃的推出情況，與您的預期相比如何，以及關於該計劃的成員、經濟效益等方面的任何數據點。謝謝。

Thanks for the question, Federico. We, we're still early days. We're just several months into this launch, but it is tracking quite well. The engagement we're getting from loyalty members is extremely strong. We're excited to roll out a similar and parallel program for our liquor business in the coming quarters and think that there'll be an interesting opportunity and some very rich data that we can receive from that. We're going to update the market on this program, but wanted to get a couple quarters, of performance underneath our belt before, sharing more detailed stats.

謝謝你的提問，費德里科。我們現在還處於起步階段。雖然產品上市才幾個月，但目前進展相當順利。我們從忠誠會員那裡獲得的參與度非常高。我們很高興能在接下來的幾個季度為我們的酒類業務推出類似的平行項目，並認為這將帶來有趣的機遇，我們可以從中獲得一些非常豐富的數據。我們將向市場更新該專案的最新進展，但在分享更詳細的統計數據之前，我們想先累積幾個季度的業績數據。

Thank you very much.

非常感謝。

Thank you. This does conclude the Q&A session for today. I would like to turn the call back over to Zach George for closing remarks. Please go ahead.

謝謝。今天的問答環節到此結束。我謹將電話交還給札克喬治，請他作總結發言。請繼續。

Thanks to all for joining us today. I appreciate your support and we look forward to updating you on our progress in the near future.

感謝各位今天蒞臨。感謝您的支持，我們期待在不久的將來向您報告我們的進展。

Thank you.

謝謝。

This concludes today's conference call. You may disconnect your line.

今天的電話會議到此結束。您可以斷開線路。

Thank you for participating and have a pleasant day.

感謝您的參與，祝您有個愉快的一天。