Alberta’s cannabis distribution agency, AGLC, has announced its first year of profits from its cannabis operations, after three years of losses since legalization. The agency reported a net income of over $18 million for the fiscal year 2022-2023, from over $600 million in sales.
AGLC’s Cannabis Revenue and Expenses
According to the agency’s annual report, the cost for the AGLC to bring in $618.9 million in sales from April 1, 2022, to March 31, 2023, was $558.5 million, leaving the agency with $60.4 million in net revenue. Operating expenses for AGLC’s cannabis operations took away another $49.3 million of that, leaving it with a net income of a little over $18 million. This is nearly three times as much as the $7 million forecasted in the province’s 2022-2023 budget.
The province also brought in $164 million in cannabis tax from the sales. As a comparison, in the same time period, gaming brought in nearly $1.6 billion for AGLC, while liquor brought in $825.1 million.
AGLC’s Cannabis Market Share and Trends
Alberta has the highest number of retail stores per person in Canada, and 27% of licensed cannabis producers are based in Alberta. The number of cannabis stores as of March 31, 2023, was the same as the previous year at 756. The agency currently lists 752 as of March 5, 2024.
Cannabis sales in Alberta were about $130 per capita, compared to about $95 in Ontario in the same time frame. Unsurprisingly, dried flower sales still dominate the Alberta market, accounting for 33.4% of all sales. When combined with pre-rolls and milled flower, which AGLC lists separately, this is nearly 59% of all sales from dried flower products.
Vapes represent just over 20% of total sales in dollars, while extracts are almost 12%. Dried flower sales declining Despite still controlling the bulk of sales, dried flower (excluding pre-rolls and milled flower) showed its third year of declines, from $237.9 million in fiscal year 2021, $226.5 million in fiscal year 2022, and $206.9 million for the 2023 fiscal year, as of March 31, 2023. Milled cannabis flower, however, did increase from $15.7 million in 2022 to $23.9 million in 2023. Just $2.6 million was sold in the fiscal year covering 2020-2021. Pre-roll sales increased from $120.8 million in 2022 to $131.8 million in 2023.
Sales in dollars from vapes, extracts, edibles, oil, beverages, capsules and soft gels all increased, while topicals and seeds decreased (as well as non-liquid beverages).
AGLC’s Cannabis Contribution to the General Revenue Fund
In the 2023 fiscal year, AGLC contributed $2.4 billion from gaming, liquor and cannabis operations to the General Revenue Fund, with cannabis accounting for less than 1%. This fund supports various public services and programs in Alberta, such as health care, education, infrastructure and social services.
AGLC’s cannabis profits are a welcome addition to the fund, especially in the context of the COVID-19 pandemic and its economic impacts. The agency’s president and CEO, Alain Maisonneuve, said in a statement that “AGLC is proud of the role we play in generating revenue for the benefit of Albertans and supporting the industries we regulate through these unprecedented times”.
