(Montreal) The Quebec Cannabis Society (SQDC) on Tuesday posted second-quarter net income up 17% over the same period last year, but its total sales fell 2.8% during the same period. period, which she attributed to a strike in some branches.
The SQDC’s net income reached 22.3 million in the most recent quarter ended September 10, which compared with a result of 19.0 million for the same period a year earlier.
Total sales reached 139.1 million in the second quarter, compared to 142 million in the same quarter last year. In volume, this represented 25,095 kg of cannabis, compared to 25,857 kg a year earlier.
The state-owned company attributed the stagnation in sales in particular to the strike which has lasted for six months in 22 of its 90 branches. These branches remain open, but their opening hours are reduced. In addition, some of them had to temporarily close their doors during the quarter to allow managers to take vacations.
Net expenses, which include selling expenses, administrative expenses and net financing income and expenses, amounted to 21.5 million, compared to 19 million last year. They accounted for 15.5% of sales in the most recent quarter, compared to 13.3% a year earlier.
Branch network sales were 132.5 million, compared to 134.4 million in the second quarter last year. In addition, online sales reached 6.6 million, compared to 7.6 million for the same period last year. This decline in online sales was explained by the strength of this sector last year, in the context of the pandemic, estimated the company.
All of the SQDC’s net income is remitted in the form of a dividend to the Quebec Ministry of Finance and reinvested in particular in cannabis prevention and research, as well as in the fight against the harms related to the use of psychoactive substances.
In the outlook for its quarterly financial report, the management of the SQDC said it was satisfied with its financial results for its second quarter, but said it observed “a slowdown in its growth and its current ability to capture the illegal market”, despite the addition of new branches.
“In the coming months and if the situation continues in the branches of the company which operate with reduced opening hours, the capture of the illegal market could continue to be affected, she underlined in her report. Remember that the SQDC always wants to reach a satisfactory agreement between the parties. »
At the end of the most recent quarter, the SQDC had 90 branches in operation, compared to 77 at the end of the second quarter of last year.