SQDC's third quarter net income was $33 million

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The Société québécoise du cannabis (SQDC), the provincial agency that oversees the legal sale of cannabis products in the province, said on Wednesday that its net income for the third quarter ended Dec. 30 was $33 million.

The result was a 2.5 percent increase over the third quarter's result of $32.2 million for 2022.

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SQDC's total sales from Sept. 10 to Dec. 30 were $201.6 million, up 7.6 percent from $187.3 a year ago.

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However, net losses continued to eat up most of the agency's revenues. They accounted for 16.6 percent of third-quarter sales — $33.4 million, compared with 14.6 percent in the third quarter last year.

Net expenses for SQDC's second quarter, which ended September 9, 2023, were 15.7 percent of sales.

SQDC believes that improvements in product categories, including extracts, edibles and formats, have allowed it to increase its sales.

Stand-alone sales at SQDC units were $189.3 million in the third quarter, compared to $176.6 million in the prior-year third quarter.

Online sales were $12.3 million, compared to $10.7 million in the third quarter last year.

Last week, SQDC announced that it would be closing one of its outlets, which it has never done before.

The closing of the SQDC branch in Montreal's Plaza Saint-Hubert on March 2 will result in the loss of 11 jobs. A spokeswoman for the agency said the closure was a “business decision” made “from a sound management perspective.”

SQDC reported net income of $20.6 million in the first quarter and $24.9 million in the second quarter.

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