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Friday, Dec 9, 2022
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Business

SQDC reports losses in revenue due to ongoing strike

22 stores have been on strike since May 20

SQDC reports losses in Q2 revenue due to ongoing strike
Photo by Jeangagnon via SQDC

The Société Québécoise du Cannabis (SQDC) said it has seen a decrease in its profits this year since a number of its stores went on strike six months ago.

On Tuesday, the SQDC announced its financial statements for its second quarter of 2022 ended Sept. 10 and reported an 8-per-cent increase of Q2 net income to $22.3 million from $20.5 million in the last quarter.

The company reported a total revenue of $69.4 million after consumer and excise taxes which is a 28 per cent increase from $54 million last quarter.

However, sales decreased by 2 per cent to $139.1 million from $142 million last year. The SQDC sold 25,095 kilograms of cannabis at its store network and online shops. Net expenses reached $21.5 million.

According to the government-run cannabis retail store, the dip in sales was because of the ongoing strike at 22 of the 90 stores.

“As always, the entirety of the SQDC’s net income will be remitted to the Ministre des Finances du Québec and reinvested primarily in cannabis research and prevention efforts and in fighting adverse effects related to the use of psychoactive substances,” said SQDC in a statement.

Read more: SQDC reports Q1 net income of $20.5M, 24% of stores still on strike

Read more: SQDC employees strike because of low wages, poor working conditions

During the quarter, the government-run company introduced its 90-minute delivery service pilot program in Quebec City and Saguenay-Lac Saint Jean communities. It also opened a new store in Piedmont for a total of 90 from 77 in the same quarter during the last fiscal year.

The SQDC continues bargaining with the Syndicat Canadien de la Fonction Publique (SCFP), which represents 28 of its 90 stores. Twenty-two out of the 28 stores have been on strike since May 20 and are being run by management on a limited schedule.

 

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