NSLC Announces 2015 First Quarter Results

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