The Société des alcools du Québec (SAQ) has just had a tough spring. For the first time in 10 years, sales and net income fell in the quarter ended June 17.
“This is something completely new for us,” admits SAQ’s new CEO, Jacques Farcy.
In the first quarter, revenue reached $902.5 million, a slight decline of 1.2%, while net profit fell $24.3 million to $301 million.
Sales fell by 2.3% in the 410 branches. Price increases in recent months will have helped stabilize dollar sales, which are stable.
Sales of Quebec products accounted for 15.7% of store sales, representing a plateau for local products.
“The bubble that was created in Quebec spirits no longer exists. With more producers and a stabilizing market, the situation for distilleries here is becoming more complex,” notes Mr. Farcy.
Hard times
Inflationary pressures and declines in disposable income would not be unrelated to declines in store sales.
“It is also our job to manage the less good years to continue to provide good financial benefits to Quebec,” says the CEO.
Outside the branch network, sales in the food wholesale network fell by 25% in the first quarter.
“Sales were lower than expected. They still had a lot of stock and orders were falling,” explains Mr Farcy.
If the SAQ doesn’t break a sales record this year, the new boss won’t be too worried.
“We will continue to invest in the future,” he said.
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