NSLC Second-Quarter Financial Performance

Halifax – October 24, 2023 ­­– The NSLC released its second-quarter (July 3, 2023 – October 1, 2023) financial results today, reporting a 0.6% increase in earnings to $83.3 million. Total sales for the quarter were up 1.2% to $242.1 million with an increase in both beverage alcohol and cannabis. There was a 0.1% increase in beverage alcohol sales to $210.7 million, and an 8.7% increase in cannabis sales to $31.4 million.

“This quarter, we saw an increase in earnings despite recent volume declines in beverage alcohol,” says Greg Hughes, President & CEO. “On a daily basis our team works hard to serve our customers responsibly, and I am proud of their commitment.”

Second-quarter results also show an increase in most sales channels, with a 2.7% increase in sales to bars, restaurants and pubs. Sales of local beverage alcohol and cannabis increased by 4.3% to $39.0 million, led by local beer with a 5.1% increase to $9.1 million, and Nova Scotia cannabis sales, which grew 19.6% to $10.3 million.

In July, the NSLC opened a new cannabis location in Halifax, renovating the Young Street store, which now offers both cannabis and beverage alcohol.

“Over the past five years, we have worked hard to increase the opportunity for our customers to access cannabis, safely,” Hughes explains. “We started with 12 cannabis locations and now we’re up to 49 stores across the province.”

Corporate social responsibility is at the heart of who we are. Our people are driven by the good we do and our commitment to having a positive impact on the communities we serve.

This quarter, with the support of our generous customers and participating Agency stores, our team members raised $70,200 for Feed Nova Scotia during our Labour Day Weekend at-cash fundraiser.

In honour of Truth and Reconciliation Day, the NSLC continued our partnership with Muin Clothing Co., owned by Derek Lewis of Millbrook First Nation, and Stanfield’s to support the National Day for Truth and Reconciliation by providing approximately 1,000 orange shirts to team members. A dollar from every shirt supports the Na-mi-quai-ni-mak Fund, which provides grants to survivors and Indigenous communities to commemorate residential schools and sites.

Q2 Business Highlights

• Our diligent front-line employees asked customers who appeared to be under the age of 30 for valid photo ID 598,635 times and refused service 4,079 times.
• Our team supported Lunenburg and Cape Breton Pride Festivals with donations from our Regional Giving Fund and participating in Pride Parades in both communities.
• Together with our team members, generous customers, and participating Agency stores, we raised a total of $70,200 for Feed Nova Scotia during our Labour Day Weekend at-cash fundraiser.
• Our employees across the province demonstrated our support of the National Day for Truth and Reconciliation by wearing orange t-shirts. We also held a flag-raising ceremony to honour Mi’kmaq History Month.
• 68 NSLC employees volunteered more than 340 hours throughout this quarter to give back to our communities.

Financial Highlights (compared to the same period last year)

• Net income (earnings) totaled $83.3 million, an increase of $0.5 million or 0.6%.
• Total sales were $242.1 million, an increase of $2.8 million or 1.2%.
• Cannabis sales were $31.4 million, an increase of 8.7%.
• Beverage alcohol sales were $210.7 million, an increase of 0.1%.
• The total sales of local beverage alcohol and local cannabis sold increased by 4.3% to $39.0 million.
• Retail customer transactions for beverage alcohol decreased by 2.2% and the average value of each transaction increased by 2.9% to $40.02.
• Retail customer transactions for cannabis increased by 13.8% and the average dollar value of each transaction decreased by 4.4% to $37.04.
• The average price per gram for cannabis decreased by 3.5% to $6.03.

Local Product Sales Highlights

Beverage Alcohol

• Nova Scotia ready-to-drink sales decreased by 0.7% to $11.2 million.
  • Local cooler sales decreased by 1.1% to $9.1 million.
  • Local cider sales increased by 0.9% to $2.1 million.
• Nova Scotia craft beer sales increased by 5.1% to $9.1 million.
• Nova Scotia spirit sales decreased by 5.1% to $3.3 million.
• Nova Scotia wine sales decreased by 4.9% to $5.2 million.

Cannabis

• Nova Scotia cannabis sales led the growth in local products with a 19.6% increase in sales to $10.3 million.
• Nova Scotia cannabis accounts for 32.8% of all cannabis sales, the largest we have seen to date.

Sales by Channel

Operating Expense Ratio

The NSLC’s operating expense ratio for the fiscal quarter, including amortization and depreciation, was 15.4% compared to 14.6% reported the prior year. 

Board Expenses

The NSLC released the Board of Directors’ expenses for the quarter. These expenses amounted to $2.51 per Director, per day. An electronic version of these expenses is available to download. 

About the NSLC

The NSLC manages the safe and responsible sale of beverage alcohol and cannabis in Nova Scotia, returning 100% of its profits to government to help fund key public services. The NSLC aspires to be a trusted retailer, partner, employer, and responsible industry steward that is helping to create a stronger Nova Scotia. For more information about the NSLC, please visit our website at myNSLC.com.

For more information please contact:

Terah McKinnon
Senior Communications Advisor, External Relations
media@myNSLC.com
O: (902) 450-5847
M: (902) 717-0979