The SQDC reports net income of $19 million for its second quarter

Montréal, November 19, 2021 – The Société québécoise du cannabis (SQDC) ended the second quarter of its 2021-2022 fiscal year on September 11, 2021, reporting sales on the order of $142 million, a $21.8 million increase from the preceding quarter. The SQDC reported net income of $19 million for the quarter, $3.9 million more than for the second quarter of the preceding fiscal year. The entire amount will be remitted to the Ministre des Finances in the form of a dividend and reinvested primarily in cannabis-related prevention efforts and research as well as the fight against the adverse effects of psychoactive substances.

To this amount can be added the tax revenues arising from the company’s operations, namely federal and provincial consumer taxes and excise taxes, which totalled $48.4 million. All told, the SQDC will transfer $67.4 million to the Québec and Canadian governments, with $53.3 million going to Québec.

These results are attributable to the SQDC’s strategy for capturing a larger share of the illegal market through responsible sales, an adapted advisory service, a competitive offer and the expansion of its store network. At the end of its second quarter, the company had 77 points of sale, a significant increase from the 45 stores in operation on the same date last year.

Results in brief

• Sales from June 20 through September 11, 2021, totalled $142 million. This corresponds to 25,857 kg of cannabis sold legally during the quarter.
• • The store network sold 24,464 kg of cannabis for a total of $134.4 million.
  • Online sales reached 1,292 kg of cannabis and totalled $7.6 million.
• The number of transactions rose to 3.2 million, with an average sales price of $6.32 a gram (including taxes).
• Net expenses amounted to $19 million. The ratio of net expenses to sales was 13.3%.
• The company passed the 1,000-employee milestone this quarter.

The SQDC remains alert to the evolving COVID-19 situation. The company continues to comply with all public health guidelines and to run its business in a safe and responsible manner.

The company remains focused on its mission of distributing and selling cannabis with a focus on health protection while converting users to the legal market without encouraging cannabis use. The company is confident of achieving its objectives for the current fiscal year. The interim financial report for the 12-week quarter ending on September 11, 2021, is now available (in French only).

About the la 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 of 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 and research.