The Société québécoise du cannabis (SQDC) reported net earnings of $20.6 million for the first quarter ending June 17, 2023, compared to $20.5 million for the same quarter last year.
There was an additional $49.8 million in tax revenue from the consumption and excise taxes, meaning the SQDC generated $70.4 million for government. This amount is remitted to the government and part of it is reinvested in the prevention of cannabis use and research.
Q1 Highlights
Sales grew by 2.6% compared to the same quarter last year despite the ongoing labour disputes.
The SQDC’s total sales between March 16 and June 17, 2023, reached $142.6 million, compared to $139 million during the first quarter of the previous fiscal year. 25,675 kg of cannabis were legally sold during this quarter. Online sales totalled $9.1 million with 1,714 kg of cannabis sold.
The number of transactions carried out during the quarter was around 3.4 million at an average selling price of $6.39 per gram. Comparatively, during the first quarter of the prior year 3.2 million transactions were carried out at an average selling price of $6.55 per gram. This reduction in prices has been seen across Canada.
Net expenses totaled $24.8 million or 17.4% of sales.
Expansion and Improvements
During Q1, the SQDC opened its 98th store in the Mile-End district of Montreal. It had 89 stores at the same time last year.
The SQDC.ca website has undergone numerous improvements as part of the company’s omnichannel strategy. These include new payment methods, Apple Pay and Google Pay, and an extension of the real-time chat tool with SQDC advisors.
Strike Update
Employees from 24 of the 26 stores accredited by the Canadian Union of Public Employees (CUPE) continue to be on strike. This represents approximately a quarter of the SQDC’s workforce. Branches on strike remain open and are operated by managers, but on reduced hours. CUPE and SQDC continue to be in negotiations.