NSLC Announces 2014 Year-end Results

The Nova Scotia Liquor Corporation (NSLC) released its year-end results today (April 1, 2013 to March 31, 2014). Compared to last year:

  • Net income (earnings) totaled $228 million; an increase of $1.9 million or 0.8%
  • Total sales were $593.2 million; an increase of $223,000
  • Total volume of alcohol sold was down 2.8%, following a 0.7% decline in the prior year
  •  Overall customer transactions (purchases) were down 2.37%, however; the average dollar value of each transaction grew by 2.43%

“Even though Nova Scotians continue to drink less, they’re increasingly turning to more premium and local options,” said Bret Mitchell, NSLC President and CEO. “On the local front, sales of Nova Scotia ciders were up nearly 146%, and our local wine and craft beer sales enjoyed double digit growth. As a committed partner in the Nova Scotian economy, we are pleased to see the continued support and growth of what we believe, are world-class products.”

Local Product Highlights:

  • Sales of Nova Scotia wines grew by 10.6%, building on the 21.9% growth last year
  • Sales of Nova Scotia ciders increased 146% on top of an increase of 95% in the year prior
  • Sales of Nova Scotia craft beers grew by 22.0%, building on the 11.7% growth last year. This growth was bolstered by the addition of new breweries including Boxing Rock Brewing, Authentic Seacoast Brewing, Hell Bay Brewing and The Whiffen Brewing Company

 Year End Sales Summary (2013 vs. 2014)

Category

Revenue

Volume (Hectoliters)

Percent of Total Sales

Wine

3.7 % to$127.7M

2.0 %

21.5%

Spirits

 ↓ 0.4 % to $ 165.4M

3.0 %

27.9%

Beer

1.6 % to $276.3M

3.6 %

46.6%

Ready-To- Drink

3.4 % to $23.7M

0.8 %

4.0%

 
 
 
 
 
 
 
 

 

Fourth Quarter Sales Summary (This year vs. last year)

Category

Revenue

Volume (Hectoliters)

Percent of Total Sales

Wine

1.9 % to $26.3 M

1.0 %

   21.7 %

Spirits

0.8 % to $35.2M

3.1 %

   29.1 %

Beer

0.3 % to $55.6M

2.2 %

46.0%

Ready-To- Drink

9.3 % to $3.9M

7.6 %

3.2%

 
 
 
 
 
 
 
 

 

Business Highlights

 Sales by Channel

Channel

Total Sales

Change from last year

NSLC Retail Store

$488.3 million

$500,000

Licensees (bars/restaurants)

$54.5 million

$1.8 million

Agency Stores (franchised stores)

$37.7 million

$100,000

Private Wine and Specialty Stores

$11.7 million

 $2.6 million*

  *NOTE: Sales increase to the province’s four private wine and specialty were largely due to a drawdown of inventory from the NSLC’s distribution centre.

Operating Expense Ratio

The NSLC’s operating expense ratio for the year – including amortization and depreciation – was 16.3% compared to 16.4% reported over the prior year.

Board Expenses

The NSLC released the Board of Directors’ expenses for the fourth quarter. These expenses amounted to $1.91 per director, per day. An electronic version of these expenses is available on myNSLC.com. More details on the NSLC’s year-end performance will be available in the integrated annual report, which will be available later this year.

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 March 31, 2014

Q4

2013/2014

2012/2013

Sales Volume (Hectolitres)

  157,762

 160,311

Spirits

        $ 35,233,765

       $ 35,514,090

Wine

 26,255,894

25,776,702

Beer

55,605,030

55,794,805

Ready to Drink

3,890,573

3,559,204

Non-liquor

                       18,225

                18,224

Total Sales by Category

 $ 121,003,488

   $ 120,663,025

Gross Profit

 $ 66,120,382

$ 65,022,153

Stores Operating Expense

              (14,044,286)

            (13,758,132)

Gross Operating Income

               $52,076,096

           $ 51,264,021

Other Corporate Expenses & Other Earnings

                (9,620,958)

            (10,832,214)

Income from Operations

  $42,455,139

$40,431,807


 

 
 
 
 
 
 
 
 

Financial Highlights
For the twelve month period ended March 31, 2014 

YTD Q4

2013/2014

2012/2013

Sales Volume (Hectolitres)

782,385

804,707

Spirits

$ 165,357,266

$ 166,049,783

Wine

127,670,859

123,111,946

Beer

276,326,808

280,737,766

Ready to Drink

23,691,066

22,920,029

Non-liquor

        119,965

123,369

Total Sales by Category

                 $ 593,165,964

$ 592,942,892

Gross Profit

$ 325,164,867

$ 323,889,577

Stores Operating Expense

               (60,900,062)

(59,096,164)

Gross Operating Income

                $ 264,264,805

$ 264,793,413

Other Corporate Expenses & Other Earnings

                (36,019,345)

(38,407,254)

Income from Operations

$ 228,245,460

$ 226,386,159

*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.