SQDC brings $258.8 million to Quebec in 2023

The Société québécoise du cannabis (SQDC) reported a solid financial performance for the year ending March 30, 2024.

According to the latest data, SQDC achieved a sales total of 662.1 million dollars in 2023 with net income of  104.1 million dollars.

Tax revenues and economic contributions

SQDC's economic impact goes beyond its direct sales. The province has declared 154.7 million in tax revenues from SQDC activities, including consumption and excise taxes, and contributed 62.6 million to federal government coffers.

In total, SQDC's contributions to the Québec government, including net income and taxes, amounted to 258.8 million against 232.7 million last year.

All proceeds from sales and taxes go to the Quebec Ministry of Finance. These funds are specifically earmarked for prevention, cannabis research and the fight against drug abuse. negative effects associated with the use of psychoactive substances.

Sales volume and market share

In terms of product sales, SQDC reported sales of 122,478 kg of cannabis in the fiscal year, an increase of 15% on the 106,626 kg sold the previous year. The bulk of these sales were dried flowers ( 97,918 kg) and other cannabis products ( 24,560 kg).

Despite this increase in sales volume, the legal market in Quebec served 62,8 % of the total cannabis market by 2023-2024, down slightly on previous years.

The majority of SQDC's sales were generated by its physical stores, with just over $40 million coming from its online portal. The organization has a well-established network from 98 stores managed by the province in across Quebec, which is distinguished by the’highest legal age for cannabis in Canada, 21 years.

SQDC has implemented a number of initiatives to improve customer service.‘The extension of the delivery zone to 90 minutes and the introduction of new offers and product formats.

Suzanne Bergeron, who takes up her role as President and CEO in 2023, underlined the organization's commitment to customer satisfaction and respect for the legal framework; «While our branch network is now well established in all regions of Quebec, I am pleased to join our committed teams in offering our customers - the heart of our operations - the support, simplicity, value for money and choice they seek, while respecting our legal framework.»

Strict regulation and new products

Quebec applies a strict regulation of cannabis products. All products sold must have a maximum THC content of 30%, including edible products, and the province does not allow cannabis to be grown at home, except for medical purposes. Quebec also offers a limited range of edible products and currently prohibits vapes to cannabis. However, there are indications that this position may change in the future.

The annual report suggests the possibility of authorizing the sale of vape pen to better compete with the illicit market. Despite the ban, a survey conducted by the SQDC in 2023 revealed that 31% of cannabis users in Quebec had used cannabis vapes, compared with 12% the previous year, a trend that the SQDC will have to seize upon in its mission to convert the illegal market.