SQDC Reports First Quarter 2025-2026 Financial Results

*MONTRÉAL – *For the first quarter of its 2025-2026 fiscal year, which
ended on June 21, 2025, the Société québécoise du cannabis (SQDC) reported
comprehensive income of CAN$27.7 million, compared with CAN$23.9 million
for the same quarter of its preceding fiscal year. To this can be added the
tax revenues generated by its operations in the form of consumer and excise
taxes, estimated at CAN $68.0 million, with CAN$48.8 million going to the
Québec government and CAN$19.2 million to the federal government.

All funds were reported in Canadian dollars.

The dividend and the Québec portion of the excise tax are remitted in full
to the Ministre des Finances du Québec and reinvested primarily in
cannabis-related prevention efforts and research and in the fight against
the harmful effects of psychoactive substances. In all, $76.5 million will
be transferred to the Fonds de lutte contre les dépendances.
The quarterly results in brief

Overall sales for the first quarter reached $181.0 million versus $162.9
for the first quarter of the 2024-2025 fiscal year.

Volume sales totalled 37,114 kg of cannabis, compared with 32,098 kg for
the same quarter last year. Growing demand for concentrates category
products and the opening of eight new stores influenced the rise in volume
sales.

The average sales price, including taxes, for all cannabis products
combined was $5.61 per gram, as opposed to $5.84 in the first quarter of
fiscal 2024-2025.

During the quarter, 4.6 million transactions were recorded, compared with
4.1 million in the same quarter of the preceding fiscal year.

Store network sales rose to $173.4 million, compared with $155.0 million
for the same quarter of fiscal 2024-2025, while online sales reached $7.6
million versus $7.9 million for the same respective periods.

For the first quarter, the SQDC’s net expenses totalled $31.7 million or
17.5% of sales, compared with $28.8 million and 17.7% of sales for the same
quarter last year.
Prospects

SQDC management is satisfied with the results for its first quarter of
fiscal 2025-2026. The company ended the quarter with 106 stores in
operation, including those in Amqui and Pierrefonds, which opened their
doors between March 31 and June 21, 2025, compared with 98 stores at the
end of the same quarter of the preceding fiscal year. The opening of new
points of sale during the first quarter and throughout the fiscal year is
aligned with the strategic plan objective to improve accessibility and thus
enable the SQDC to carry out its mission. The company is also making good
on its commitment to offer products that are lower risk than those
available on the illegal market. Accordingly, the SQDC is preparing to
begin selling vaping products responsibly in the late fall of 2025.
About the Société québécoise du cannabis (SQDC)

The SQDC is a government corporation mandated to distribute and sell
cannabis in Québec with a focus on protecting customers’ health and safety.
The company is committed to offering quality products and informing and
advising consumers on how to minimize the health impacts of cannabis. The
goal is to shrink the illegal cannabis market in Québec. The declared
dividend equal to the company’s net income is transferred to the Fonds de
lutte contre les dépendances, a fund managed by the Ministère des Finances
du Québec, and reinvested primarily in cannabis-related education,
prevention efforts and research.