The Nova Scotia Liquor Corporation (NSLC) released its first quarter results today (April 1, 2015 to June 28, 2015). Compared to last year:
- Net income (earnings) totaled $56.3 million; up $1.3 million or 2.4%
- Total sales were $143.5 million; down $0.9 million
- Total volume of alcohol sold was down 2.3% following last year’s 2.5% decline
- Overall retail customer transactions (purchases) were down 2.1%, however, the average dollar value of each transaction grew by 1.2%
“With a continued focus on expense control and refining our product mix, we performed well for the quarter, growing our net income over the last year and exceeding our plan,” said Bret Mitchell, President and CEO, NSLC.
Local Product Highlights for the quarter:
- NS craft beer sales grew by 17.4% to $1.7M, after last year’s 33.7% growth
- NS spirit sales grew by 338.6% to $0.2M, after last year’s 7.7% decline
- NS wine sales (using locally-grown grapes) were down by 6.5% after 4.7% growth last year (fueled in part by last year’s sellout of the NSLC’s best-selling wine, Nova 7)
- NS commercial wine sales (produced here without local grapes) were up 0.7% after last year’s 4.9% decline
- NS cider sales increased 42.1% on top of last year’s 71.9% growth
First Quarter Sales Summary (This year vs. last year)
|
Category
|
Revenue
|
Volume (Hectoliters)
|
Percent of Total Sales
|
|
Wine
|
↓ 0.02 % to $30.7 M
|
↑ 0.3 %
|
21.4 %
|
|
Spirits
|
↓ 0.3 % to $36.8 M
|
↓ 0.9 %
|
25.7 %
|
|
Beer
|
↓ 1.2 % to $68.8 M
|
↓ 3.1 %
|
48.0 %
|
|
Ready-To-Drink
|
↑ 1.4 % to $7.1 M
|
↑ 2.5 %
|
5.0 %
|
Sales by Channel
|
Channel
|
Total Sales
|
Change from last year
|
|
NSLC Retail Store
|
$117.3 million
|
↓ $1.1 million
|
|
Licensees (bars/restaurants)
|
$13.0 million
|
↓ $0.3 million
|
|
Agency Stores (franchised stores)
|
$10.4 million
|
↑ $0.8 million
|
|
Private Wine and Specialty Stores
|
$2.5 million
|
↓ $0.2 million
|
Operating Expense Ratio
The NSLC’s operating expense ratio for the year – including amortization and depreciation – was 16.3% compared to 16.6% reported over the prior year.
Board Expenses
Board expenses for the quarter amounted to $0.62 per director per day.
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 28, 2015
|
Q1
|
2015/2016
|
2014/2015
|
|
Sales Volume (Hectolitres)
|
190,128
|
194,587
|
|
Spirits
|
$ 36,837,273
|
$ 36,955,683
|
|
Wine
|
30,656,551
|
30,661,576
|
|
Beer
|
68,839,235
|
69,699,944
|
|
Ready to Drink
|
7,123,191
|
7,027,253
|
|
Non-liquor
|
22,273
|
25,426
|
|
Total Sales by Category
|
$ 143,478,522
|
$ 144,369,883
|
|
Gross Profit
|
$ 79,763,301
|
$ 78,915,557
|
|
Store Operating Expenses
|
( 14,424,094)
|
(14,761,432)
|
|
Gross Operating Income
|
$ 65,339,207
|
$ 64,154,125
|
|
Other Corporate Expenses & Other Earnings
|
(9,011,236)
|
(9,162,609)
|
|
Income from Operations
|
$ 56,327,971
|
$ 54,991,516
|