Sundial Growers announces cost saving measures, rightsizing at Alberta facility

Sundial Growers announced changes to its operations through a rightsizing of cannabis cultivation in Olds, Alberta, in an effort to focus the facility on premium products and brands. The Valens Company transaction has accelerated the need to optimize and rationalize SNDL‘s manufacturing and operational footprint to better address market saturation and oversupply. SNDL has initiated a headcount reduction of approximately 85 employees at the Olds facility as a part of a larger phased cost savings program that is expected to deliver close to $9M in savings across labour and operational costs. The cost savings initiatives are expected to position SNDL to exceed its previously announced integration savings target as a result of the acquisition of Valens. SNDL expects to complete most of this transition within the first quarter of 2023, and the cost savings will be immediately accretive to adjusted EBITDA. The company expects to report record net revenue and net cash provided by operating activities for the fourth quarter of 2022, with the year-end and fourth quarter of 2022 results expected to be announced at the end of March 2023. The company’s ongoing focus on high-quality cannabis cultivation operations, combined with Valens’ low-cost biomass procurement capabilities, will enhance SNDL’s ability to offer a wide range of customized, innovative products to meet customer demand and current market conditions. SNDL is confident that consumers will not see changes to the availability and quality of the company’s brands. Through its integration and rationalization efforts, the company is assessing all assets and will continue to make decisions based on sustainable profitability.