SQDC in Q3: Net income of $32.2 million from $187.3 million in sales

| Staff

The SQDC brought in more than $30 million in net income in the last three months of 2022, from nearly $190 million in cannabis sales. 

During its third reporter quarter of 2022, the Société québécoise du cannabis (SQDC) recorded an overall net income of $32.2 million from $187.3 million in sales. 

In addition, the province brought in another $38.4 million in estimated tax revenue in the same time period, out of $54.4 million collected (75 percent of excise taxes collected goes to the province). A total of $86.6 million was earmarked for governments from this reporting period, including $70.6 million for the Quebec state.

Quebec reinvests this income for prevention and research in the field of cannabis, as well as against any harm related to the use of psychoactive substances. 

Early Birds from September 11 and December 31, 2022, represented a slight decline from the same time period in 2021 of $190.5 million. The provincial cannabis agency says sales volume (33,242 kg of cannabis) declined slightly, potentially due to ongoing strike actions impacting two dozen SQDC locations. 

The sales also represent an increase from the previous quarter, which saw $139.1 million in sales, with an overall net income of $22.3 million.

The SQDC sold 31,274 kg of cannabis for a total amount of $176.6 million. Early Birds on the SQDC website accounted for another 1,968 kg of cannabis, for a total of $10.7 million. Net expenses for retail sales with 14.6 percent of sales, or $27.3 million. 

The SQDC had 92 branches operating as of Q3 2022, compared to 81 branches in the third quarter of 2021-2022. Forty-eight SQDC branches are non-unionized, while 26 are unionized. Twenty-four of those 26 are currently on strike. The stores are operating with limited hours. 

Two SQDC stores recently faced break-in, one at the Beauport SQDC location and another at an SQDC location in Montreal.

The SQDC’s President and CEO Jacques Farcy told StratCann in 2022 about the province’s plan to move from adding new stores to refining consumer experience, including a new “small lot” program to introduce new, unique products into the market.

If the pilot project is successful based on producer and consumer feedback, the SQDC plans on fully implementing the program in April-May 2023.