SQDC increases net income and total sales in first quarter

Société québécoise du cannabis (SQDC) reported an overall net income of $23.9 million on Thursday for the first quarter, which ended on June 22. A person enters an SQDC shop in Montreal on Saturday, January 15, 2022. (The Canadian Press/Graham Hughes)

The Société québécoise du cannabis (SQDC) increased its overall net profit and total sales in the first quarter, citing growth in demand.

On Thursday, SQDC reported an overall net income of $23.9 million for the first quarter, which ended June 22, up by around 14 per cent on the same period last year.

Total sales were $162.9 million, up by around 12 per cent.

The Crown corporation reported that tax revenues generated by its operations in the form of consumption and excise taxes amounted to $60 million, of which $43 million went to the Quebec government and $17 million to the federal government.

Including net comprehensive income, SQDC paid a total of $83.9 million to both levels of government, including $66.9 million to the Quebec government, the company said in a press release. These sums are reinvested "in cannabis prevention and research."

In terms of volumes, sales were equivalent to 32,098 kg of cannabis for the quarter, compared with 25,675 kg for the same period last year. Growth in demand for concentrate-type products was partly offset by the labour dispute, now settled, which limited operations in 24 branches during the first quarter, according to the SQDC.

SQDC had 98 branches in the first quarter and has since opened two more. It is continuing to evaluate new market opportunities, it said.

During the quarter, 4.1 million transactions were recorded, compared with 3.4 million in the first quarter of 2023-2024.

SQDC's net expenses were $28.8 million, compared with $24.8 million in the same quarter last year.

-This report by The Canadian Press was first published in French on Sept. 5, 2024.