HALIFAX, October 24, 2017 – The Nova Scotia Liquor Corporation (NSLC) released its second quarter results today (July 3, 2017 to October 1, 2017). Compared to last year:
- Net income (earnings) totaled $70.9 million; up $0.5 million or 0.7%
- Total sales were $176.8 million; an increase of $4.0 million or 2.3%
- Total volume of beverage alcohol sold was up 2.1%
- Retail customer transactions (purchases) were down 0.2%, while the average dollar value of each transaction grew by 2.4%
“We are pleased with our performance so far this fiscal year leading into the busy holiday selling season,” said Bret Mitchell, NSLC President & CEO. “This is an exciting time in the beverage alcohol industry as we continue to see significant growth in the sales of local products.”
Local Product Sales Highlights for the quarter:
- Nova Scotia wine sales were up by 11.9% to $3.5 million
- Nova Scotia craft beer sales grew by 49.5% to $3.9 million
- Nova Scotia spirit sales grew by 85.2% to $1.6 million
- Nova Scotia commercial wine sales were up 2.0% to $6.0 million
- Nova Scotia ready-to-drink products (largely ciders made with locally grown apples) increased by 46.4% to $1.4M
Business Highlights
- Our commitment to corporate social responsibility continued with Keep It Social, a partnership with Nova Scotia universities to raise awareness and conversation about the harms of high-risk drinking
- The 22nd annual Festival of Wines was a tremendous success with thousands of guests enjoying the week’s events, culminating in two days of Grand Tastings that included more than 350 wines from 12 countries.
Second Quarter Sales Summary (This year vs. last year)
| Category |
Revenue |
Volume (Hectolitres sold by NSLC) |
Per Cent of Total Sales |
| Wine |
4.3% to $39.9M |
1.8% |
22.3% |
| Spirits |
1.4% to $42.6M |
2.9% |
24.1% |
| Beer |
1.2% to $81.4M |
0.5% |
46.1% |
| Ready-To-Drink |
6.6% to $13.2M |
5.1% |
7.5% |
Sales by Channel
| Channel |
Sales |
Change |
| NSLC Retail Stores |
$142.4M |
$3.1M |
| Licensees (bars/restaurants/pubs) |
$15.0M |
$0.4M |
| Agency Stores (franchised stores) |
$15.2M |
$0.9M |
| Private Wine and Specialty Stores |
$3.7M |
$0.5M |
Operating Expense Ratio
The NSLC’s operating expense ratio for the quarter – including amortization and depreciation – was 14.2% compared to 13.9% reported for the same period last year.
Board Expenses
The NSLC released the Board of Directors’ expenses for the first quarter. These expenses amounted to $0.66 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 $190 million in locally-produced products every year. For more information about the NSLC, please visit our website at myNSLC.com.
For more information please contact:
Beverley Ware
Nova Scotia Liquor Corporation
Phone: (902) 450-5920
Email: beverley.ware@mynslc.com
Financial Highlights
For the second quarter ended October 1, 2017
| Q2 |
2017/2018 |
2016/2017 |
| Sales Volume (Hectolitres) |
232,533 |
227,687 |
| Spirits |
$42,622,751 |
$42,020,467 |
| Wine |
39,500,048 |
37,875,874 |
| Beer |
81,414,070 |
80,451,035 |
| Ready-To-Drink |
13,190,351 |
12,379,459 |
| Non-Liquor |
35,998 |
35,512 |
| Total Sales by Category |
$176,763,218 |
$172,762,348 |
|
|
|
| Gross Profit |
$95,994,400 |
$94,535,494 |
| Store Operating Expenses |
(15,978,764) |
(15,419,350) |
| Gross Operating income |
$80,015,636 |
$79,116,145 |
| Other Corporate Expenses & Other earnings |
(9,073,362) |
(8,680,769) |
| Income from Operations |
$70,942,275 |
$70,435,376 |
| YTD Q2 |
2017/2018 |
2016/2017 |
| Sales Volume (Hectolitres) |
437,972 |
436,776 |
| Spirits |
$82,176,146 |
$81,648,522 |
| Wine |
74,212,413 |
71,151,990 |
| Beer |
156,019,773 |
155,928,459 |
| Ready-To-Drink |
22,979,551 |
21,895,192 |
| Non-Liquor |
61,844 |
62,314 |
| Total Sales by Category |
$335,449,726 |
$330,686,476 |
|
|
|
| Gross Profit |
$182,389,975 |
$181,259,181 |
| Store Operating Expenses |
(31,949,852) |
(31,087,209) |
| Gross Operating income |
$150,440,123 |
$150,171,972 |
| Other Corporate Expenses & Other earnings |
(18,803,442) |
(17,608,803) |
| Income from Operations |
$131,636,682 |
$132,563,169 |