What happened
The trading week started off nicely for Canadian marijuana company SNDL (SNDL -2.50%), which saw its share price inch marginally higher as the S&P 500 index slumped by nearly 1%. Investors were cheered by the company's latest set of quarterly results, which showed growth and a popular weed industry line item landing comfortably in the black.
So what
Fueled by acquisitions, SNDL managed to boost its net revenue for the third quarter by more than 16-fold on a year-over-year basis to 230.5 million Canadian dollars ($173.8 million). Collectively, the analysts tracking the pot company were expecting the equivalent of just under $172 million.
The story was different on the bottom line, where SNDL flipped to a loss of CA$98.8 million ($74.5 million) from the year-ago profit of CA$16.7 million ($12.6 million). The company was notably impacted by noncash impairments, which amounted to CA$86.5 million ($65.2 million).
The company's performance looked a little better when measured by the cannabis industry's favored profitability metric, earnings before interest, taxes, depreciation, and amortization (EBITDA). On a non-GAAP (adjusted) basis, this came in at a profit of CA$18.3 million ($13.8 million) for the period.
Now what
Not surprisingly, SNDL's most dramatic improvement came in its cannabis retail division. Bolstered by acquisitions, these operations brought in more than CA$66 million ($49.8 million) in the third quarter for a more than tenfold increase.
The company's other divisions, liquor retail and cannabis operations, also saw growth, albeit with less dramatic improvements. The former's take inched up by 1%, while the latter's increased 7%.
