Quebec Cannabis Society – SQDC Registers Record Profits in Q2

The Société québécoise du cannabis (SQDC) recorded unprecedented revenues in the second quarter of the 2024-2025 fiscal year, partly thanks to the adaptation of its product offering to meet consumer demands.

SQDC: Growth in sales and transactions

During the quarter, the SQDC achieved total sales of $173.7 million (€116 million), which represents a substantial increase of 26% compared to the $151.7 million recorded during the same period last year. The quantity of cannabis sold also jumped, reaching 34,675 kilograms, compared to 27,498 kilograms in the second quarter of the 2023-2024 fiscal year.

Net sales reached $29.4 million , an increase of 15% over the prior year’s $24.9 million. This performance coincided with an increase in consumer transactions, which totaled $ 4.4 million, a significant increase over the $3.6 million recorded in the prior year quarter.

The SQDC’s activities generated substantial revenue for the provincial government. During the quarter, Quebec received $43.9 million in cannabis taxes , while the federal government collected $17.5 million. In total, cannabis sales contributed $ 73.3 million to Quebec’s revenue. These funds are reinvested in initiatives such as cannabis research and prevention programs.

Towards affordable products

The average selling price of cannabis fell to $5.76 per gram , compared to $6.34 per gram in the same quarter of 2023. This decline reflects a notable shift in consumer demand toward less expensive products and concentrates , which are generally priced lower than other categories. Despite this trend, the agency has managed to maintain profitability by increasing its sales volume and refining its offerings to meet diverse consumer preferences.

In the second quarter, the SQDC opened two new branches, including the 100th in Richelieu, Montérégie, and another in Donnacona. The SQDC has not opted for an aggressive expansion of its stores, as is the case in Ontario , but instead focuses on improving the consumer experience in its existing stores. According to Suzanne Bergeron, President and CEO of the SQDC, the agency has used six years of consumer data to better understand their preferences and refine its retail strategies.

“We’re starting to get a good amount of data on consumer preferences, what they like and what they don’t like, [as well as] what keeps them in the illicit market versus what they’re coming to the SQDC for,” Bergeron said in an interview with StratCann.

“Knowing that, we’re able to refine the strategy on how we’re going to tailor our stores so they feel welcome when they come in.”

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(Featured image by Terrance Barksdale via Pexels)

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