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SQDC Generates $54 Million in Q1

For its first quarter ending June 18, 2022, Société québécoise du cannabis (SQDC) generated $54 million for the Québec government. That total consists of net income of $20.5 million and $33.5 million from consumer and excise tax revenue.

SQDC claims that 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.

SQDC’s overall sales for the quarter reached $139 million, compared with $136.5 million for the first quarter of the preceding fiscal year. Of that total, $132.3 million was sold through the network of stores. Net earnings amounted to $6.7 million or 16.6% of sales.

A total of 25,050 kg of cannabis was legally sold during the period and online sales represented 1,703 kg.

A new in-store pick-up service was gradually introduced beginning in April and is now offered across the network. Customers can purchase products on and pick up their order in a store at no extra charge.

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. On the same date last year, SQDC only had 68 stores operating.

Two Unions Striking

After prolonged strikes, 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.

Tags: Cannabis Retail (252), excise tax (4), Quebec cannabis industry (1), Société québécoise du cannabis (11), SQDC (22)