NSLC Announces 2014 Second Quarter Results

The Nova Scotia Liquor Corporation (NSLC) released its second quarter results today (June 30, 2014 to September 28, 2014). Compared to last year:

  • Net income (earnings) totaled $69.0 million; an increase of $2.1 million or 3.2%
  • Total sales were $169.0 million; an increase of $0.1 million
  • Total volume of alcohol sold was up 0.2%
  • Overall customer transactions (purchases) were down 1.2%, however; the average dollar value of each transaction grew by 1.6%

“Declines in beer and spirits sales were essentially countered by a growing interest in our ready-to-drink (RTD) category,” said Bret Mitchell, NSLC President and CEO. “RTD sales were up 18% thanks in part to another record- breaking year in local ciders. In all, sales of Nova Scotia ciders were up nearly 63%, which has a positive impact on both our bottom line and the local economy.”

Local Product Highlights:

  • Sales of Nova Scotia wines were up 9.4% to $3.5M, building on the 7.8% growth experienced last year
  • Sales of Nova Scotia ciders increased 62.8% to $0.4M, building on 170.0% growth the year prior
  • Sales of Nova Scotia craft beers were up 28.9% to $1.5M, building on the 18.1% growth experienced last year
  • Sales of Nova Scotia spirits were up 0.9% to $0.3M, building on the 1.2% growth experienced last year

Business Highlights

Sales Comparison by Category

Category

Revenue

Volume (Hectoliters)

Per Cent of Total Sales

Wine

1.7% to $34.8M

0.3%

20.6%

Spirits

3.2% to $41.6M

0.9%

24.6%

Beer

0.8% to $82.2M

1.0%

48.6%

Ready-To-Drink

18.1% to $10.5M

18.8%

6.2%

Retail Stores

The NSLC’s retail sales (NSLC banner stores) for the quarter were $138.2 million, a 0.3% increase from $137.8 million last year.

Licensee Sales

The NSLC’s licensee sales (restaurants, pubs and bars,) sales were $15.2 million, a 2.2% decrease from $15.6 million last year.

Agency Stores

Sales to NSLC’s agency stores (co-located stores serving the province’s rural communities) rose from $12.4 million to $13.1 million, an increase of 5.6%.

Private Wine and Specialty Stores

Sales to the province’s four private wine and specialty stores declined from $2.9 million to $2.3 million.

Operating Expense Ratio

The NSLC’s operating expense ratio for the year – including amortization and depreciation – was 14.6% compared to 14.9% reported over the prior year.

Board Expenses

The NSLC released the Board of Directors’ expenses for the second quarter. These expenses amounted to $1.39 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 September 28, 2014

Q2

       2014/2015

            2013/2014

Sales Volume (Hectolitres)

      232,491

            232,057

Spirits

          $ 41,564,910

          $ 42,942,965

Wine

 34,786,686

   34,209,268

Beer

  82,193,749

    82,896,750

Ready to Drink

  10,461,209

    8,854,864

Non-liquor

                        34,086

30,410

Total Sales by Category

           $ 169,040,640

$ 168,934,257

Gross Profit

       $ 93,596,684

             $ 91,979,179

Store Operating Expenses

               (15,654,943)

(15,890,090)

Gross Operating Income 

               $ 77,941,741

$ 76,089,089

Other Corporate Expenses & Other Earnings

              $ (8,966,914)

$ (9,244,641)

Income from Operations

       $ 68,974,827

          $ 66,844,448

For the 6 months ended September 28, 2014 

YTD Q2

         2014/2015

             2013/2014

Sales Volume (Hectolitres)

        427,077

             431,550

Spirits

         $ 78,520,593

             $ 82,024,268

Wine

  65,448,262

      64,727,367

Beer

    151,893,693

      154,623,408

Ready to Drink

   17,488,463

      14,666,507

Non-liquor

                          59,512

55,334

Total Sales by Category

             $ 313,410,523

$ 316,096,884

Gross Profit

        $ 172,512,241

            $ 172,294,334

Store Operating Expenses

                (30,416,375)

(30,491,302)

Gross Operating Income

            $ 142,095,866

$ 141,803,032

Other Corporate Expenses & Other Earnings

             $ (18,129,523)

$ (17,835,153)

Income from Operations

      $ 123,966,343

           $ 123,967,879