The SQDC reports net income of $26.4 million for the third quarter of its 2021-2022 fiscal year

Montréal, February 17th, 2022 – The Société québécoise du cannabis (SQDC) had total sales of $190.5 million in the third quarter of fiscal 2021-2022, a $17.5 million increase from the third quarter of its preceding fiscal year. This allowed the company to report net income of $26.4 million, compared with $23.3 million in the corresponding quarter of fiscal 2020-2021.

At the end of the first three quarters of its 2021-2022 fiscal year, the SQDC reported net income of $60.2 million as opposed to $48.1 million at the end of the same period last fiscal year. The entire amount will be remitted to the Québec government and reinvested primarily in cannabis-related research and prevention efforts.

To the amount can be added government revenues arising from the company’s operation, in the form of consumer taxes collected by the provincial and federal governments and excise taxes. Combined, these totalled around $56.3 million in the third quarter.

Quarterly results in brief

• For the period from September 12, 2021, to January 1, 2022, sales totalled $190.5 million. This corresponds to 34,582 kg of cannabis sold legally during the quarter.
• The store network sold 32,846 kg of cannabis for dollar sales totalling $180.9 million. Around 4.3 million in-store transactions were completed.
• For their part, online sales reached 1,736 kg of cannabis for total dollar sales of $9.6 million, with 117,554 transactions being completed.
• Net expenses amounted to $27.6 million, giving a ratio of net expenses to sales of 14.5%.

Quarterly highlights

• On October 12, 2021, Jacques Farcy joined the SQDC team as the company’s new President and Chief Executive Officer.
• The SQDC moved forward with its deployment plan, opening four new stores. As at January 1, 2022, the company had 81 stores and 989 employees in its network.
• The opening of the Chibougamau store on October 15, 2021, finally gave the SQDC a physical presence in each of Québec’s administrative regions, another step toward achieving one of the three orientations of its strategic plan, namely to increase accessibility to the legal market by expanding the store network. This is a key factor in fulfilling the company’s mission to convert the illegal market while maintaining a focus on health protection.

COVID-19

The health measures in place to limit the spread of COVID-19 have allowed SQDC stores to continue providing a safe environment to employees and customers. The store network remained open without interruption throughout the quarter, as it has since the start of the pandemic.

The interim financial report for the 16-week quarter from September 12, 2021, to January 1, 2022, is now available (in French only) on SQDC.ca.

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. By law, 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.