SNDL Reports Third Quarter 2023 Financial and Operational Results and Achieves Positive Net Cash from Operating Activities and Free Cash Flow CALGARY, AB

SNDL Reports Third Quarter 2023 Financial and

Operational Results and Achieves Positive Net Cash from Operating Activities and Free Cash Flow

CALGARY, AB, Nov. 13, 2023 /CNW/ - SNDL Inc. (Nasdaq:

SNDL) ("SNDL" or the "Company") reported its financial and operational results for the third quarter

ended September 30, 2023. Unless otherwise indicated, all financial information in this press release is reported in millions of Canadian

SNDL has also posted a supplemental investor presentation

on its website, at https://sndl.com.

THIRD QUARTER 2023 FINANCIAL AND OPERATIONAL HIGHLIGHTS

"SNDL's positive net cash from operating activities

and first quarter of free cash flow generation marks a pivotal milestone, reflecting our team's commitment to operational and financial

excellence," said Zach George, Chief Executive Officer of SNDL. "We are intent on realizing SNDL's potential for improved profitability,

material growth and greater efficiencies across all of our segments. We recently commenced our Liquor Retail data program and continue

to see margin improvements in our Cannabis Retail network. In addition, we have rationalized our facility footprint and are moving aggressively

into procurement to drive improved results in our Cannabis Operations segment. As previously disclosed, we are in the advanced stages

of restructuring key U.S. credit exposures in a manner compliant with U.S. laws. Our commitment to delight consumers remains steadfast

as we work to deliver cost-effective, high-quality products and exceptional retail experiences. While we have made significant progress

and recognize our achievements, our goals are a far climb from where we stand today. Our industry-leading balance sheet and improved operations

enable us to avoid short-term thinking in order to build the foundations of a business that we believe will create sustainable shareholder

value through strong free cash flow generation."

THIRD QUARTER 2023 KEY FINANCIAL METRICS

THIRD QUARTER 2023 RESULTS

SNDL's business is operated and reported in four segments:

Liquor Retail, Cannabis Retail, Cannabis Operations and Investments.

SNDL is Canada's largest private sector liquor

retailer, operating 170 locations, predominantly in Alberta, under its three retail banners: "Wine and Beyond", "Liquor

Depot" and "Ace Liquor".

With its ownership interest in Nova Cannabis Inc.

("Nova"), SNDL is Canada's largest private-sector cannabis retailer, operating 186 locations under its four retail

banners: "Value Buds", "Spiritleaf", "Superette", and "Firesale Cannabis". SNDL's Cannabis Retail

strategy is based on several pillars, including the quality of its store locations, its range of products, and the unique experiences

it provides customers. Using data and insights from a large volume of monthly transactions enables SNDL to leverage technology and analytics

to inform and improve its retail strategy.

SNDL has a diverse brand portfolio from value to premium,

emphasizing premium inhalable formats and a full suite of 2.0 products. With enhanced procurement capabilities and plans to continue evolving

toward a cost-effective cultivation and manufacturing operation, the Cannabis Operations segment is a key enabler of SNDL's vertical integration

STRATEGIC AND ORGANIZATIONAL UPDATE

SNDL remains focused on building long-term shareholder

value through vertical integration, the accretive deployment of cash resources, expansion of its retail distribution network, the further

streamlining of the Company's operating structure, and enhanced offerings of high-quality brands within the Liquor Retail, Cannabis Retail

and Cannabis Operations segments.

Integration Initiatives

Since the acquisition of The Valens Company Inc.

in January 2023 (the "Valens Acquisition"), the Company has realized $21.9 million in annualized cost savings, substantially

exceeding its total initial target of $10 million. In 2023 alone, SNDL achieved cost savings of $17.8 million at an expenditure of $3.6

million. Most cost savings have been realized through SG&A, supply chain consolidation and operational efficiency. By 2024, run-rate

synergies are expected to exceed $40 million annually, and proceeds from asset sales are expected to total $9 million.

SNDL made significant optimizations to its facility

footprint to enhance the competitiveness and profitability of its Cannabis Operations segment. As a result of this key integration initiative,

SNDL expects optimizing its facility footprint to result in an additional $10 million in annual savings from its Cannabis Operations segment

through reduced fixed overhead, power costs, and increased labour efficiencies.

As part of SNDL's commitment to effectively address

market demand, the Company is in the process of rationalizing its SKU portfolio. By focusing on high-margin products and continuing to

drive innovation, the Company expects to see better margins for the Cannabis Operations segment and through owned retail in the upcoming

quarters. This approach is designed to allow the Company to optimize its resources and achieve its long-term goals while maintaining a

competitive edge in the market.

The Company's integration initiatives are critical

to SNDL's vision of establishing Canada's largest regulated products platform and generating sustainable free cash flow.

This press release is intended to be read in conjunction

with the Company's condensed consolidated interim Financial Statements and Notes for the three and nine month ended September 30, 2023,

and the accompanying Management's Discussion and Analysis ("MD&A"). These reports are available under the Company's

profile on SEDAR at www.sedarplus.ca and EDGAR at www.sec.gov/edgar.shtml.

The Company will hold a conference call and webcast

at 10:30 a.m. EST (8:30 a.m. MST) on Monday, November 13, 2023.

To access the live webcast of the call, please visit the following link:

A telephone replay will be available for one month.

To access the replay, dial:

Canada/USA Toll Free: 1-800-319-6413 or International Toll: +1-604-638-9010

When prompted, enter Replay Access Code: 0541#

The webcast archive will be available for three months via the link provided above.

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, Citizen Stash, Sundial Cannabis, Palmetto, Bon Jak,

Spiritleaf Selects, Versus Cannabis, Value Buds, Vacay, Grasslands and Superette. 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"),

including, but not limited to, statements regarding the Company's operational goals, the Company's ability to achieve improved profitability, growth

and efficiencies across all segments, or its goal of sustainable, positive gross margin and positive free cash flow, revenue generation

from the Liquor Retail proprietary data licensing program, expansion of product offerings (including the expected launch of the Company's

wine private label), the impact of rationalization initiatives on revenue and margins within the Cannabis Operations segment and owned

retail locations, the expansion and additional cost savings at the Atholville facility, performance of the Company's investments, including

through the SunStream joint venture and SunStream USA, the receipt of regulatory and listing authority approvals necessary to implement

the proposed SunStream USA investment structure, the ability to realize expected cost savings in relation to the Valens Acquisition, expected

run-rate synergies and expected proceeds from future asset sales, and any other potential forms of shareholder value creation.. Forward-looking

statements are frequently characterized by words such as "plan", "continue", "expect", "project",

"intend", "believe", "anticipate", "estimate", "likely", "outlook",

"forecast", "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