The Société des alcools du Québec (SAQ) posted first-quarter net income on Friday up 14.6%. The increase is supported by a 9.7% growth in sales, as the market returned to conditions more similar to those prevailing before the start of the pandemic.
The Crown corporation’s net income was $325.6 million for the quarter ended June 18, compared to $284 million for the same period last year.
Revenue reached 913.1 million during the quarter, compared to 832.2 million last year. Expressed in volume, quarterly sales reached 53.7 million litres, an increase of 2.9% compared to last year.
The SAQ attributed this growth to the resumption of activities in the restaurant and bar sector, which contributed to a $93 million increase among this clientele. On the other hand, the return to a pre-pandemic level of sales in restaurants and drinking places had an adverse impact on sales made to consumers, which fell by 12.2 million.
Old shopping habits
For their part, consumers seemed to reconnect with their old buying habits, observed the SAQ. In fact, their average basket during store visits fell to $65.40, compared to $69.71 in the same quarter last year.
During this time, traffic increased by 4.6%, suggesting that customers came to the branch more frequently. In addition, online sales fell 8.5% year-on-year to 23.8 million in the most recent quarter. They represent 3.6% of sales made to consumers.
Most product categories generated better sales in the most recent quarter. Sales of wine increased by 8.5% over one year to reach 625.4 million, while those of spirits grew by 15.8%, to 244.8 million.
Sales of ready-to-drink products fell 4.9% to 37 million, but those of beer, cider and complementary products rose 9.3% to 5.9 million.
Substantial revenues for governments
The SAQ’s net expenses climbed 4.6% to 134.4 million, which represents 14.7% of sales. This ratio was 15.4% in the equivalent quarter last year.
The SAQ points out that it generates substantial revenue for both levels of government.
In the first quarter, these revenues reached 618.8 million, compared to 556.6 million during the same quarter of 2021-2022, an increase of 11.2%.
This increase is explained in particular by an increase in the consumption taxes collected due to the increase in sales as well as by higher rebates of excise and customs duties, she explains.
The amounts owing to the Quebec Treasury reached $499.2 million compared to $446.8 million, a jump of 11.7%.
With The duty