Cannabis sales continue to rise in Quebec

The Société québécoise du cannabis (SQDC) posted solid financial results for the third quarter of fiscal 2024-2025, with net income of reaching C$40.5 million, compared with 33 million $CA recorded over the same period last year, as reported by StratCann.

Increased sales and volume

The last report shows that sales of in Quebec totalled $235.9 million. compared with $201.6 million in the third quarter of the previous year, an increase of 17 % from one year to the next.

In terms of volume, SQDC sold 47,843 kg of cannabis over the past three months, compared with 37,215 kg sold in the same quarter in 2023-2024. This 28.6 % increase in sales volume is partly attributable to consumer interest in cannabis extracts, including oils and capsules, but also the few hash and other rosins that manage to stay below the provincial limit of 30% of THC.

Lower prices, more transactions

SQDC's strategy to make cannabis more affordable seems to be paying off. The average price per gram in the third quarter was 5,67 $, against 6,23 $ the previous year. This price adjustment probably contributed to the increase in consumer transactions, which reached 6 million purchases for all cannabis products, against 4.9 million transactions in the third quarter 2023-2024.

Despite overall growth, sales have fallen slightly, from 12.3 million dollars the previous year to 9.4 million. The SQDC attributes this decline to a postal strike in november, which had an impact on delivery services. However, sales in physical stores increased, generating 226.5 million, against 189.3 million in the same quarter last year.

At present, the SQDC operates 101 retail stores, with 104 licensed sites in the last quarter. The organization has announced its intention to further expand its physical presence in 2025, in order to meet the growing demand for legal cannabis in Quebec.

2025 should also see vape pens arrive in stores, a way to boost sales and developing the legal cannabis market of the province, which has been largely limited by strict product regulations and a ban on self-cultivation.

In addition to generating profits, SQDC helps finance public initiatives. On the 92 million in revenues generated by cannabis sales and excise taxes, the government has committed to reinvesting these funds in health-related programs, including the prevention and research on cannabis use.