Quebec liquor board (SAQ) reports another drop in net profit

SAQ head office is seen in Montreal, Monday, Feb. 12, 2024. (Ryan Remiorz, The Canadian Press)

The Quebec liquor board (Société des alcools du Québec - SAQ) reported a 3.5 per cent drop in third-quarter net profit on Thursday compared with the same period a year earlier.

The Crown corporation said that for the quarter ending Dec. 30, its profits totalled $522.7 million, compared with $541.4 million for the same quarter last year.

Meanwhile, sales fell by 0.9 per cent to $1.4 billion, largely due to a decline in the wholesale grocery network. Sales in the branch and specialized centre network remained stable at $1.3 billion.

The SAQ has made no secret of the fact that the "slight decline" seen over the last three quarters could continue, given the economic climate.

"The operating results achieved in the third quarter are satisfactory given the economic context. However, they are not sufficient to enable us to achieve our net profit target for the year," it acknowledged in its third-quarter financial report.

Online sales were up 30 per cent on the same quarter last year, accounting for 4.1 per cent of consumer sales. The SAQ explains this increase by the anticipation of a commercial activity.

The average basket of purchases made by consumers in stores and specialized centres fell from $68.95 to $67.65, a decline of 1.9 per cent.

Sales of Quebec products in the third quarter totalled $195.3 million and accounted for 15.1 per cent of sales in the branch and specialized centre network, down 2.2 per cent year-on-year.

This report by The Canadian Press was first published in French on March 28, 2024.