Cannabusiness in Quebec is high.
In its first fiscal year, from October 17, 2018, to March 30, 2019, the Société québécoise du cannabis (SQDC) had sales totalling $71 million (9.9 metric tons) making it the highest sales in the country in both dollars and volume.
According to the SQDC’s press release, in-store sales throughout the network totalled $57.6 million or 8 metric tons. 1.3 million transactions were completed, with an average shopping cart (including taxes) of $51.07.
The SQDC website generated $13.7 million in sales, corresponding to 1.9 metric tons of the green stuff. Roughly 257,000 transactions were completed, with an average shopping cart (including taxes) of $61.06.
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Soon after launching its store network, the SQDC opted to cut shop hours to four days a week due to supply challenges.
Despite the supply issues and its scaled-back expansion plans, the SQDC, which is now open seven days a week, estimates, based on Statistics Canada, that it is now the highest (pun intended) in all of Canada in both dollars and volume.
The SQDC reported a comprehensive income of $0 which consisted of a $4.9 million loss, offset by a financial contribution from the Quebec government.
Net expenses totalled $18.1 million, according to the SQDC, and included non-recurring start-up costs on the order of $4.9 million. Excluding said costs, net expenses would have been $13.2 million and the SQDC would have ended its fiscal year with a balance of $0.
Based on budget forecasts and producers’ supply cycles, the SQDC expects to become profitable in the coming fiscal year.
The Quebec government’s 2019-2020 budget lists the SQDC’s expected net earnings at $20 million.
The releases concludes by pointing out that the company is “generating value while maintaining its focus on education, health protection, and gradually bringing users into the legal market.”
All profits from the SQDC will be reinvested into cannabis research for the growing industry.