CALGARY,
AB, July 16, 2024 /CNW/ - SNDL Inc.
(Nasdaq: SNDL) ("SNDL" or "The Company") today
announced a restructuring project aimed at reducing corporate
overheads and improving the efficiency of its organizational
structure to position the Company for future growth. The project is
expected to deliver over $20 million
in annualized cost savings driven primarily by the optimization of
corporate overhead spending, including the reduction in 106
full-time employees. The restructuring will require a one-time
investment of $11 million over the
next 18 months.
As part of these operational adjustments, SNDL is consolidating
its Cannabis segments into a single unit under the leadership of
Tyler Robson. This consolidation is
intended to enhance efficiency, improve alignment and improve
process speed within SNDL's vertical model.
"This restructuring project and segment consolidation are
critical steps in our journey towards better capital deployment,
improved agility, focus, and profitability, and will free up
resources to invest in profitable growth opportunities," said
Zachary George, Chief Executive
Officer of SNDL. "We are committed to enhancing our organizational
effectiveness by streamlining processes while leveraging technology
and automation."
SNDL expects to achieve most of the anticipated annualized
savings by mid-2025, while starting to capture some of the
opportunities as early as Q3 2024.
ABOUT SNDL INC.
SNDL is a public company whose shares are traded on the Nasdaq
under the symbol "SNDL." SNDL is the largest private-sector liquor
and cannabis retailer in Canada
with retail banners that include Ace Liquor, Wine and Beyond,
Liquor Depot, Value Buds, Spiritleaf, and Firesale Cannabis. SNDL
is a licensed cannabis producer and one of the largest vertically
integrated cannabis companies in Canada specializing in low-cost biomass
sourcing, premium indoor cultivation, product innovation, low-cost
manufacturing facilities, and a cannabis brand portfolio that
includes Top Leaf, Contraband, Palmetto, Bon Jak, Versus, Value
Buds, and Vacay. SNDL's investment portfolio seeks to deploy
strategic capital through direct and indirect investments and
partnerships throughout the North American cannabis industry. For
more information on SNDL, please go to https://sndl.com/.
Forward-Looking Information Cautionary Statement
This news release includes statements containing certain
"forward-looking information" within the meaning of applicable
securities law ("forward-looking statements"). Forward looking
statements in this release include, but are not limited to,
expectations regarding cost savings and restructuring charges, and
statements regarding the future performance of the Company.
Forward-looking statements are frequently characterized by words
such as "plan", "continue", "expect", "project", "intend",
"believe", "anticipate", "estimate", "may", "will", "potential",
"proposed" and other similar words, or statements that certain
events or conditions "may" or "will" occur. These statements are
only predictions. Various assumptions were used in drawing the
conclusions or making the projections contained in the
forward-looking statements throughout this news release.
Forward-looking statements are based on the opinions and estimates
of management at the date the statements are made, and are subject
to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from
those projected in the forward-looking statements. The Company is
under no obligation, and expressly disclaims any intention or
obligation, to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as expressly required by applicable law.
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SOURCE SNDL Inc.