(Montreal) The Société québécoise du cannabis (SQDC) increased its overall net income and total sales in the first quarter, citing growth in demand.
The SQDC reported on Thursday an overall net result of 23.9 million during the first quarter ended June 22, up approximately 14% compared to the corresponding period of the previous fiscal year.
Its total sales were 162.9 million, up about 12%.
The state-owned company indicated that the tax revenues generated by its operations in the form of consumption taxes and excise taxes amounted to $60 million, of which $43 million was paid to the Quebec government and $17 million to the federal government.
In total and including the net overall result, $83.9 million is paid by the SQDC to the two levels of government, including $66.9 million to the Quebec government, the company indicated in a press release. These sums are notably reinvested “in prevention and research in cannabis.”
In terms of volumes, sales were equivalent to 32,098 kg of cannabis for the quarter, compared to 25,675 kg for the previous fiscal year. Growth in demand for concentrate-type products was partly offset by the now-resolved labour dispute that limited operations at 24 branches during the first quarter, according to the SQDC.
The SQDC had 98 branches during the first quarter, and has opened two more since then. It is continuing to evaluate new market opportunities, it was indicated.
During the quarter, 4.1 million transactions were recorded, compared to 3.4 million for the first quarter of 2023-2024.
The SQDC’s net expenses were $28.8 million, compared to $24.8 million in the corresponding quarter of the previous fiscal year.