Net earnings total $1.034 billion while Quebec wine sales grow 81%
Montreal, June 26, 2015
The SAQ ended the fourth quarter of its 2014-2015 fiscal year with cumulative net earnings of $1.034 billion, a 3.1% increase from the preceding fiscal year. The government corporation’s sales rose 2.4% from fiscal 2013-2014 to total $3.006 billion.
Thus, at fiscal year-end, the SAQ will pay a dividend of $1.034 billion to the Quebec government, $13 million more than the amount planned in the June 2014 provincial budget. In all, the federal and provincial government revenues from the SAQ’s business activities – in the form of dividends, federal duties and consumption taxes – totalled $2.028 billion, $1.630 billion of which was remitted to the Quebec treasury.
These financial results are consistent with the trend seen in recent years, as the SAQ has maintained healthy sales growth for 10 years now.
Spectacular growth for Origine Québec
The 2014-2015 fiscal year was an exceptional one for the local beverage alcohol industry. In the space of a year, volume sales in all categories of Origine Québec products experienced appreciable growth of around 22% to reach nearly 1.3 million litres. The Origine Québec wine category, which includes dessert and sparkling wines, turned in an especially remarkable performance, with spectacular growth of nearly 81%.
In fiscal 2015-2016, the SAQ intends to continue promoting Origine Québec products, which it hopes to introduce in another 80 stores. This would bring the number of points of sale with an Origine Québec section to 260.
Well-performing sales networks
At the end of the fourth quarter, the results reveal that the cumulative sales from the SAQ’s combined sales and distribution networks totalled $3.006 billion, an increase of $71.4 million or 2.4%. The corresponding volume sales rose 3.3 million litres or 1.7% to 192.7 million litres.
In the last five fiscal years, the annual average growth rate of sales in the store and specialized centre network was 3.5%, compared with 2.2% for the wholesale grocer network. This translates into a growth rate of 2.1% for volume sales in the store and specialized centre network and 2% in the wholesale grocer network.
Sales by category: wine accounted for 70% of the overall sales increase
At the end of the fourth quarter of fiscal 2014-2015, cumulative wine sales in all of the SAQ’s sales and distribution networks totalled $2.264 billion, up $50.7 million or 2.3% from the preceding fiscal year. For their part, volume sales rose 2.4% to 160.2 million litres. As ever much appreciated by Quebecers, wine accounted for more than 70% of overall sales growth.
Spirits experienced sales growth of $25.3 million or 4% to reach $664.3 million. Volume sales for this category totalled 22.1 million litres, a rise of 1.4%.
Net expenses under control
Net expenses totalled $566.6 million at fiscal year-end versus $551.5 million for the preceding year, a $15.1 million or 2.7% increase.
Expressed as a percentage of sales, net expenses were essentially the same as in fiscal 2013-2014, namely 18.8%.