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SQDC Exceeds Target in Q1 2020

According to the President and CEO of the Société québécoise du cannabis (SQDC) Jean-Francois Bergeron, things are going exactly as planned.

“Our efforts have borne fruit,” he said in the company’s 2020 Annual Report, boasting that the company exceeded their surplus target by 30%, adding more than $90 million in revenue and taxes to Quebec’s coffers.

The new fiscal year seems to be getting off to a good start, as well. In its most recent report, SQDC claimed a net income of $9.7 million in the first quarter, $8.4 million more than this time last year.

Overall, from over 2 million transactions, the company earned $110.4 million in sales, an increase of $65.3 million over last year, which translates to 18,922 kg of cannabis. Of those, 2,791 kg were sold online for a total of $15.8 million through 190,000 transactions.

According to SQDC, COVID-19 did slow things down somewhat. Data showed that while transactions were down in frequency, cart sizes were larger. Additionally, stores that were scheduled to open during the height of the pandemic had to be put on hold.

Despite that, the SQDC opened 26 new stores, bringing the total up from 16 the previous year to 42 operational stores at the end of June. On top of that, the company launched express delivery in mid-July, offering same-day delivery to customers on the island of Montreal.

This growing retail footprint and convenience of shopping with the SQDC helped them acquire more than 40% of the illegal market, according to a press release.

Not only that, but the SQDC is now responsible for providing in-store employment for 644 people, and last year SQDC signed its first collective bargaining agreement, providing union representation for employees at 38 out of 42 stores.

According to its Strategic Plan for the next few years, the SQDC has major growth in its future, hoping to have as many as 70 stores operating by the end of 2021.

Tags: Cannabis retail stores (33), Jean-Francois Bergeron (2), online cannabis sales (3), Quebec cannabis (10), SQDC (28)