(Montreal) The Quebec Cannabis Society (SQDC) posted net income on Monday up 22.2% for its third quarter compared to the same period a year earlier, even though its revenues fell 1.7% during this time.
The Crown corporation’s net and comprehensive income was $32.2 million, compared to $26.4 million in the previous third quarter.
SQDC revenues totaled 187.3 million, which compared with 190.5 million in the same quarter a year earlier.
The company admitted that the evolution of its sales was undermined by a labor dispute affecting 24 of the 26 branches represented by the Canadian Union of Public Employees (CUPE). The branches affected by a strike remain in operation with reduced opening hours, thanks to the work of the managers.
The entire SQDC network had 92 branches as of December 31, the last day of the third quarter. This figure compares with 81 branches at the end of the previous third quarter.
The value of sales made through the SQDC website reached 10.7 million in the most recent quarter, up from 9.6 million in the last three months of 2021.
Meanwhile, sales in the branch network rose to 176.6 million from 180.9 million a year earlier.
The SQDC’s net expenses reached 27.3 million in the most recent quarter, down from 27.6 million recorded a year earlier. The net expense-to-sales ratio was 14.6%, compared to 14.5% in the previous third quarter.
Staff compensation, which is the company’s main net expense, totaled 14.2 million in the third quarter, compared to 15.1 million a year earlier.
The SQDC gives Québec all of its net income, as well as the tax revenues related to its operations. In the most recent quarter, consumption and excise taxes reached $54.4 million, including $38.4 million intended for the Quebec government.
The general and unlimited strike of members of CUPE, affiliated with the FTQ, began on May 28. The last offer presented by Quebec, in December, was rejected by 94% by the members.
Salary is the main point in dispute. CUPE is demanding a salary for its members comparable to that of other government corporations, such as the Société des alcools du Québec (SAQ), ie at least $20 an hour. Currently, CUPE union members earn $17.12 per hour when hired.
In the press release presenting its most recent results, the SQDC indicated that it ” [espérait] always arrive at a negotiated agreement between the two parties.