NSLC Announces Third Quarter Results 2017

HALIFAX, February 21, 2017 – The Nova Scotia Liquor Corporation (NSLC) released its third quarter results today (October 3, 2016 to January 1, 2017). Compared to the same period last year:

  • Net income (earnings) totaled  $64.8 million, an increase of $0.3 million or 0.5% compared to the third quarter last year
  • Total sales were $161.0 million; an increase of $3.2 million or 2.0%
  • Total volume of beverage alcohol sold by NSLC was down 0.7%
  • Overall customer transactions were down 0.1%, while the average dollar value of each transaction increased by 2.3%

“Continued strong performance in Q3 means we’re well positioned at this point to achieve our full-year financial targets,” said Bret Mitchell, President and CEO. “We’re also pleased to see our efforts to promote local in our stores continue to reap positive results in terms of higher sales for Nova Scotian products.”

Local Product Sales Highlights:

  • NS spirits sales grew by 111.6% to $1.2M. Local spirit sales continue to grow, on the strength of several great products, including NS Spirit Co.’s Blue Lobster Vodka, Calderra’s Hurricane 5 Whiskey, and Glenora’s Glen Breton Rare.
  • Sales of Nova Scotia ready-to-drink products – which are largely ciders made with locally grown apples - increased 83.0% to $0.8M.
  • NS craft beers sales grew by 29.5% to $2.5M.
  • NS wine sales (using locally-grown grapes) were up by 1.7% to $2.9M.
  • NS commercial wine sales (produced here without local grapes) were up 5.8% to $6.3M.

Business Highlights

Sales Comparison by Category

Category Revenue Volume (Hectolitres sold by NSLC) Per Cent of Total Sales
Wine 3.9% to $39.9M 2.3% 24.8%
Spirits 1.9% to $47.8M 1.3% 29.7%
Beer 0.4% to $66.0M 2.6% 41.0%
Ready-To-Drink 17.2% to $7.3M 17.0% 4.6%

Sales by Channel

Channel Sales Change
NSLC Retail Stores $133.8M $2.8M (2.2%)
Licensees (bars/restaurants/pubs) $12.8M $0.2M (1.7%)
Agency Stores (independently owned) $11.0M $0.5M (4.5%)
Private Wine and Specialty Stores $3.2M $0.2M (6.6%)
Other Wholesale $0.1M $0.1M (53.1%)

Operating Expense Ratio

The NSLC’s operating expense ratio for the year – including amortization and depreciation – was 15.2%0.1% reduction of the ratio reported for the same period last year. 

Board Expenses

The NSLC released the Board of Directors’ expenses for the third quarter. These expenses amounted to $5.80 per Director, per day. An electronic version of these expenses is available at myNSLC.com. To view, click 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 quarter ended January 1, 2017

Q3 2016/2017 2015/2016
Sales Volume (Hectolitres) 191,756 193,179
Spirits $47,746,979 $46,857,805
Wine 39,855,459 48,374,890
Beer 66,002,112 66,237,439
Ready-To-Drink 7,347,429 6,271,609
Non-Liquor 50,182 47,227
Total Sales by Category $161,012,161 $157,788,970
Gross Profit $89,322,693 $88,650,189
Store Operating Expenses (15,749,217) (14,995,706)
Gross Operating income $73,573,476 $73,654,483
Other Corporate Expenses & Other earnings (8,781,738) (9,206,976)
Income from Operations $64,791,738 $64,447,508