For the second quarter of its current fiscal year, the Société québécoise du cannabis (SQDC) has reported comprehensive income of $22.3 million. To that can be added the tax revenues resulting from the company’s operation (consumer and excise taxes), amounting to $47.1 million, of which $33.6 million will go to the Québec government. A total of $69.4 million is thus being paid to the two governments, including $55.9 million to Québec. As always, the entirety of the SQDC’s net income will be remitted to the Ministre des Finances du Québec and reinvested primarily in cannabis research and prevention efforts and in fighting adverse effects related to the use of psychoactive substances.
The results at a glance
- The SQDC’s overall sales for the period from June 19 to September 10, 2022, totalled $139.1 million, compared with $142 million for the second quarter of the preceding fiscal year. This corresponds to 25,095 kg of cannabis sold legally during the quarter. As can be seen, sales have stagnated, largely due to the ongoing strike at 22 of the company’s 90 stores. The affected stores remain open but with limited hours.
- The store network sold 23,864 kg of cannabis for a total of $132.5 million.
- Online sales reached 1,231 kg of cannabis or $6.6 million.
- Some 3.2 million in-store and online transactions were completed.
- Net expenses amounted to $21.5 million or 15.5% of sales.
Highlights of the quarter
- The company introduced its 90-minute delivery service in the Québec City area and designated Saguenay–Lac-Saint-Jean communities. The service is currently in pilot phase but may be expanded in the coming months. For more information, see SQDC.ca.
- The SQDC added several new solid edibles to its product catalogue in full compliance with its mission to capture the illegal cannabis market without encouraging use.
- On August 1, the company opened a new store in the municipality of Piedmont. This brings to 90 the total number of stores currently in operation, compared with 77 in the second quarter of last fiscal year.
- At September 10, 2022, the SQDC had 1,036 sales network and head office employees.
- The company remains in bargaining talks with the Syndicat canadien de la fonction publique (SCFP), which represents 28 of its 90 stores. Of those 28, 22 have been on strike since May 20 and are being run on a limited schedule by management personnel. The SQDC continues to hope for a negotiated agreement between the two parties.
About the Société québécoise du cannabis (SQDC)
The SQDC is a government corporation mandated to distribute and sell cannabis in Québec with a focus on protecting customers’ health and safety. The company is committed to offering quality products and informing and advising consumers on how to minimize the health impacts of cannabis. The long-term objective is to shrink the illegal cannabis market in Québec. All the SQDC’s profits are remitted to the Cannabis Prevention and Research Fund, which is managed by the Ministère des Finances du Québec and reinvested primarily in cannabis-related prevention efforts and research. For more information, visit SQDC.ca.