NSLC Announces Second Quarter Results

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