NSLC Announces 2014 First Quarter Results

The Nova Scotia Liquor Corporation (NSLC) released its first quarter results today (April 1, 2014 to June 29, 2014).

Key Business Highlights:

  • Net income (earnings) totaled $55.0 million; a decrease of $2.1 million or 3.7%
  • Total sales were $144.4 million; a decrease of $2.8 million
  • Total volume of alcohol sold was down 2.5%
  • Overall customer transactions (purchases) were down 3.1%, however; the average dollar value of each transaction grew by 1.8%

Local Product Highlights:

  • Sales of Nova Scotia ciders increased 71.9% on top of the 206.8% increase the year prior
  • Sales of Nova Scotia craft beers grew by 29.9%, building on the 14.3% growth the year prior
  • Sales of Nova Scotia wines grew by 1.6%, building on the 25.1% growth the year prior

“These initial results are slightly above our target for the year, and illustrate that even though Nova Scotians are choosing to drink less, they’re continuing to reach for more local products,” said Bret Mitchell, NSLC President and CEO. “We are thrilled to be a part of this growing movement, and look forward to working with our industry partners to continue creating new opportunities for Nova Scotia business.”

Business Highlights

Sales Comparison by Category

Category

Revenue

Volume (Hectoliters)

Per Cent of Total Sales

Wine

↑ 0.5% to $30.7M

↓ 0.9%

21.2%

Spirits

 ↓ 5.4 % to $37.0M

↓ 3.6%

25.6%

Beer

↓ 2.8% to $69.7M

↓ 4.0%

48.3%

Ready-To-Drink

↑ 20.9% to $7.0M

 ↑ 25.1%

4.9%

Sales Comparison by Channel

Channel

Sales

Change from last year

NSLC Retail Store

$118.4 million

$1.7 million

Licensees (bars/restaurants)

$13.4 million

$611,000

Agency Stores (franchised stores)

$9.6 million

↑ $6,000

Private Wine and Speciality Stores

$2.7 million

$476,000

Operating Expense Ratio

The NSLC’s operating expense ratio for the year – including amortization and depreciation – was 16.6% compared to 15.8% reported over the prior year.

Board Expenses

The NSLC released the Board of Directors’ expenses for the first quarter. These expenses amounted to $4.25 per director, per day. An electronic version of these expenses is available on myNSLC.com.

About the NSLC

For over 80 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 over $30 million in local products every year. For more information on the NSLC, please visit www.myNSLC.com.

For more information please contact:

Mike Maloney
Nova Scotia Liquor Corporation
Phone: (902) 450-5920
Email: mike.maloney@myNSLC.com

Financial Highlights
For the quarter ended June 29, 2014

Q1

   2014/2015

2013/2014

Sales Volume (Hectolitres)

194,587

199,493

Spirits

         $ 36,955,683

              $ 39,081,303

Wine

  30,661,576

    30,518,099

Beer

 69,699,944

 71,726,658

Ready to Drink

7,027,253

    5,811,643

Non-liquor

                        25,426

24,924

Total Sales by Category  

           $ 144,369,883

$ 147,162,627

Gross Profit

        $ 78,915,557

               $ 80,315,155

Store Operating Expenses

            (14,761,432)

(14,601,212)

Gross Operating Income

             $ 64,154,125

$ 65,713,943

Other Corporate Expenses & Other Earnings

 

                (9,162,609)

 

(8,590,512)

Income from Operations

        $ 54,991,516

               $ 57,123,431

*NOTE:

  • Prior year gross profit and store operating expenses have been adjusted to reflect a change in the reporting classification of product breakage. This had no impact on reported earnings.
  • Prior year reported earnings include a gain on property sale of $490,000.
  • Current year reported earnings include a gain on property sale of $74,000.