MONTRÉAL, Feb. 13, 2025 /CNW/ - The Société québécoise du cannabis (SQDC) has reported comprehensive income of $40.5 million for the third quarter of its fiscal year, which ended January 4, 2025. For comparison purposes, comprehensive income was $33.0 million for the same quarter of the preceding fiscal year.
Tax revenues, in the form of consumer and excise taxes generated by the company's operations, amounted to $72.6 million, $5112.5 million of which is paid to the Québec government and $21.1 million to the federal government.
In all and including comprehensive income, the SQDC is remitting $113.1 million to the two levels of government, of which $92.0 million is going to the Quebec treasury for reinvestment primarily in cannabis-related prevention efforts and research.
Quarterly results at a glance
- Overall sales in the third quarter totalled $235.9 million as opposed to $201.6 million in the third quarter of the preceding fiscal year.
- In terms of volume, some 47,843 kg of cannabis were sold during the third quarter, compared with 37,215 kg during the third quarter of the preceding fiscal year. The average sales price of all cannabis products taken together was $5.67 a gram, taxes included.
- The sales increase can be largely explained by growing demand from products in the concentrates family, which had the effect of increasing equivalent gram sales volume. This factor is the main source of the difference between the percentage growth figures for dollar sales and volume sales. In addition, the end of the labour dispute, which was resolved during the third quarter of fiscal 2023-2024, increased traffic during the holiday period of the current fiscal year. The opening of a new store during the quarter also contributed to the sales increase.
- A total of 6.0 million transactions were completed during the third quarter, compared with 4.9 million in the third quarter of fiscal 2023-2024.
- Store network sales reached $226.5 million versus $189.3 million for the same quarter of fiscal 2023-2024.
- Online sales totaled $9.4 million for the quarter as opposed to $12.3 million for the third quarter of fiscal 2023-2024. The interruption of deliveries caused by the Canada Post labour dispute explains the drop in online sales for the third quarter of fiscal 2024-2025 compared with the same quarter of the preceding fiscal year.
- The SQDC's net expenses for the quarter totalled $37.5 million, compared with $33.4 million for the third quarter of fiscal 2023-2024. Expressed as a percentage of sales, net expenses were 15.9% versus 16.6% for the third quarter of 2023-2024. Net expenses consist of selling and administrative expenses, net finance income and other income.
- The SQDC had 101 stores in operation at the end of the third quarter, three more than at the end of the third quarter of the preceding fiscal year.
Highlights of the third quarter
To ensure it can fulfill its mission of reducing the scope and size of the illegal cannabis market in Québec while maintaining a focus on health protection, the SQDC wants to improve accessibility for its customers.
With that aim, the company is continuing to evaluate market opportunities in currently unserved areas. At the same time and over the coming months, the company will open new stores with a rethought interior design, the goal being to improve the customer experience with better-adapted pathways, new furniture, lighting and signage, square footage adapted to market size and an optimized range of products for sale The in-store pick-up service is also being improved and the delivery service expanded into new areas.
The SQDC has also implemented a significant technology solution for improving and simplifying all the company's human resources management processes.
The financial report for the third quarter of the 2024-2025 fiscal year is now available (in French only) on the SQDC website: Publications | SQDC
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 objective is to shrink the illegal cannabis market in Québec. All the SQDC's profits are remitted to the Fonds de lutte contre les dépendances, a fund managed by the Ministère des Finances du Québec, and reinvested primarily in cannabis-related education, prevention efforts and research. For more information, visit SQDC.ca.
SOURCE Société québécoise du cannabis
Media inquiries: Chu Anh Pham, Public Affairs Advisor and Spokesperson, 438 884-1693, [email protected]
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