Quebec's cannabis corporation's net profits up 51 per cent over last year
Quebec's cannabis crown corporation SQDC (Société québécoise du cannabis) increased its first-quarter net income by 51 per cent compared to the same period last year, which the SQDC attributed in part to growth in the number of branches in its network.
The provincially-run corporation's net income reached $14.8 million for the 12 weeks ending June 19, SQCD said Friday.
That's an increase of $5.1 million over the $9.7 million result for the same period last year.
Sales, meanwhile, jumped 23 per cent, or $26.1 million, to $136.5 million. That number represents 24,538 kilograms of cannabis legally sold in Quebec.
The company attributed the increase to the deployment of new branches and the migration of consumers from the illegal market.
The SQDC network counted 68 branches as of June 19, up from 42 at the same time last year.
The Crown corporation said all of the profit will be paid as a dividend to the Quebec government, which will reinvest in cannabis prevention and research.
The SQDC collected the equivalent of $46.1 million in consumption and excise taxes in the most recent quarter. Of this amount, $32.9 million will go to the provincial government and $13.2 million to the federal government.
The company also mentioned that it is conducting a pilot project to expand its online delivery service to Quebec City.
SQDC customers also ordered less than they did at the same time last year when the pandemic began. Online sales dropped from $15.8 million to $9.3 million. They now represent the equivalent of 6.8 per cent of total sales value.
-- This report by The Canadian Press was first published in French on Sept. 10, 2021.