The SQDC reports net income of $20.5 million for its first quarter ended June 18, 2022

Montréal, September 12, 2022 – For its first quarter that ended June 18, 2022, the activities of the Société québécoise du cannabis (SQDC) generated $54 million for the Québec government. The company reported net income of $20.5 million for the quarter. To that can be added the $33.5 million in tax revenue resulting from its operations in the form of consumer and excise taxes, bringing the total to $54 million. The net income is remitted in its entirety to the ministre des Finances du Québec and reinvested primarily in cannabis research and prevention efforts and in fighting the adverse effects related to the use of psychoactive substances.

The results at a glance

• The SQDC’s overall sales for the period from March 27 to June 18, 2022, reached $139 million, compared with $136.5 million for the first quarter of the preceding fiscal year. A total of 25,050 kg of cannabis was legally sold during the period.
• The store network sold 23,802 kg of cannabis for a total $132.3 million.
• On the order of 3.15 million in-store transactions were completed.
• For their part, online sales reached 1,703 kg of cannabis or $9.3 million.
• Net earnings amounted to $6.7 million or 16.6% of sales.

Highlights of the quarter

• A new in-store pick-up service was gradually introduced beginning in April and is now offered across the network. Allowing customers to purchase products on SQDC.ca and pick up their order in a store at no extra charge, the new service is a way for the SQDC to uphold its commitment to accessibility.
• During the quarter, the company opened two new stores, in the cities of Montréal and Gaspé, bringing the total number of stores on June 18, 2022, to 89, with 1,051 employees in the company. It should be noted that the SQDC had 68 stores on the same date last year.
• The SQDC continued negotiations with the two unions that, on June 18, 2022, represented the employees of 44 of its 89 stores. An agreement was reached with the Confédération des syndicats nationaux (CSN) and approved by the employees concerned on June 26. Of the 28 stores represented by the Syndicat canadien de la fonction publique (SCFP), 22 have been on strike since May 20. With one exception, all these stores remain open, albeit on a reduced schedule, and are operated by managers. The SQDC still hopes a negotiated settlement between the two parties can be reached.

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.