NSLC Announces Second Quarter Results

Halifax, October 30, 2018 – The NSLC released its second quarter results today (July 2, 2018 to September 30, 2018) Compared to last year: 

  • Net income (earnings) totaled $70 million; down $0.8 million or 1.2%
  • Total sales were $182.2 million; an increase of $5.4 million or 3.1%
  • Total volume of beverage alcohol sold was up 2.9%
  • Retail customer transactions (purchases) were up 1.9%, but the average dollar value of each transaction fell by 3.4% 

“Innovative products in the Ready-To-Drink category, strong local products sales, and favourable summer weather contributed to our solid financial performance this quarter. We are optimistic we are on track to meet our financial obligations this fiscal year” said Bret Mitchell, NSLC President & CEO.  

Business Highlights

Sales Comparison by Category

Category Revenue Volume (Hectolitres sold by NSLC) Per Cent of Total Sales
Wine 1.7% to $38.8M 2.9% 21.2%
Spirits 1.3% to $43.2M 0.9% 23.6%
Beer 2.7% to $83.6M 1.7% 45.7%
Ready-To-Drink 25.7% to $16.6M 24.7% 9.1%

Sales by Channel

Channel Sales Change
NSLC Retail Stores $147.9M $5.6M (4.0%)
Licensees (bars/restaurants/pubs) $15.1M $0.1M (0.5%)
Agency Stores (independently owned) $15.6M $0.2M (1.3%)
Private Wine and Specialty Stores $3.4M $0.4M (9.4%)
Other Wholesale $0.2M $0.1M (37.7%)

Business Highlights

  • Efforts to promote responsible choices were in full-swing with the NSLC’s Cabbioke participating in eight parades, 16 community events, 43 store visits with 78 employee volunteers.
  • Construction was completed on the first cannabis store in Amherst.
  • A new NSLC Express store was opened on Dunbrack Street in Halifax.
  • Two separate awareness campaigns for cannabis, ‘Need to Know’ and ‘What to Expect’, were launched.
  • The first purchase orders for recreational cannabis were placed with 14 licensed producers.

Local Product Sales Highlights

The growth in local industry continues to be strong, driven by innovation in the categories, the expansion of businesses and quality products.

  • Nova Scotia wine sales grew by 6.7% to $3.8 million.
  • Nova Scotia craft beer sales grew by 32.3% to $5.2 million.
  • Nova Scotia spirit sales grew by 34.7% to $2.2 million.
  • Nova Scotia commercial wine sales (produced in Nova Scotia with imported grapes) were down 1.9% to $5.9 million.
  • Nova Scotia commercial beer contributed $47 million in sales, up $1 million or 2.2%.
  • Nova Scotia ready-to-drink products, which are largely ciders, had a strong quarter with sales increasing by 26.6% to $1.8 million.

Operating Expense Ratio

The NSLC’s operating expense ratio for the year – including amortization and depreciation – was 15.3% compared to 14.2% reported the prior year. This increase is largely a result of the preparations required to offer cannabis as a new product category.

Board Expenses

The NSLC released the Board of Directors’ expenses for the fourth quarter. These expenses amounted to $2.27 per Director, per day. An electronic version of these expenses is available here.

About the NSLC

For over eighty years, the NSLC has been managing the safe and responsible sale of beverage alcohol in Nova Scotia, returning 100% of its profits to government to help fund key public services. As a true partner in our communities, the NSLC conducts its business with integrity and respect for the environment, while supporting the sale of more than $200 million in Nova Scotia-produced products every year. For more information about the NSLC, please visit our website at myNSLC.com.

For more information please contact:

Beverley Ware, Communications Advisor


O: (902) 450-5920

M: (902) 456-5040


Financial Highlights

For the quarter ended September 30, 2018

Q2 2018/2019 2017/2018
Sales Volume (Hectolitres) 239,383 232,533
Spirits $43,189,775 $42,622,751
Wine 38,817,066 39,500,048
Beer 83,555,929 81,414,070
Ready-To-Drink 16,608,298 13,190,351
Non-Liquor 29,552 35,998
Total Sales by Category $182,200,620 $176,763,218
Gross Profit $98,070,552 $95,994,400
Store Operating Expenses (17,618,368) (15,978,764)
Gross Operating income $80,452,184 $80,015,636
Other Corporate Expenses & Other earnings (10,329,998) (9,073,362)
Income from Operations $70,122,186 $70,942,275

For the 6 months ended September 30, 2018 

YTD Q2 2018/2019 2017/2018
Sales Volume (Hectolitres) 443,077 437,972
Spirits $82,253,709  $82,176,146 
Wine 73,076,169  74,212,413 
Beer 155,982,752  156,019,773 
Ready-To-Drink 27,639,813  22,979,551 
Non-Liquor 53,251  61,844 
Total Sales by Category $339,005,695  $335,449,726 
Gross Profit $183,097,937  $182,389,975 
Store Operating Expenses (33,545,017) (31,949,852)
Gross Operating income $149,552,920  $150,440,123 
Other Corporate Expenses & Other earnings (20,430,451) (18,803,442)
Income from Operations $129,122,469  $131,636,682 



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