NSLC Announces 2015 Third Quarter Results

The Nova Scotia Liquor Corporation (NSLC) released its third quarter results today (September 29, 2014 to December 28, 2014). Compared to last year:

  • Net income (earnings) totaled $62.0 million; up $200,000 or 0.4%
  • Total sales were $155.0 million; a decrease of $1.1 million or 0.7%
  • Total volume of alcohol sold was down 1.1%
  • Overall customer transactions were down 0.9%, however, the average dollar value of each transaction grew by 0.34%
“We were pleased that, in spite of continued overall transaction and volume declines, we still managed to improve our net income for the quarter,” said Bret Mitchell, President and CEO, NSLC. “Sales performance over the important December selling period exceeded expectations, with local wine, beer, spirits and cider all experiencing exceptional growth.”

Local Product Sales Highlights:

  • Nova Scotia wine sales grew by 19.9% to $3.2M – building on the 7.7% growth experienced the year prior
  • Nova Scotia cider sales increased 54.6% to $0.3M – building on 199.0% growth in the year prior
  • Nova Scotia craft beer sales grew by 27.4% to $1.3M – building on the 25.5% growth experienced last year
  • Nova Scotia spirit sales grew by 9.1% to $0.4M – building on the 2.4% growth experienced last year

Business Highlights

Category

Revenue

Volume (Hectoliters)

Per Cent of Total Sales

Wine

0.7% to $36.9M

⇊ 0.6%

23.8%

Spirits

⇊ 3.4% to $46.5M

0.7%

30%

Beer

⇊ 0.6% to $65.7M

⇊ 2.1%

42.4%

Ready-To-Drink

13.1% to $5.8M

⇈ 16.5%

3.9%

Sales by Channel

Channel

Sales

Change

NSLC Retail Stores

$128.8 M

$0.6 M (0.5%)

Licensees (bars/restaurants/pubs)

$13.1 M

$0.4 M (3.2%)

Agency Stores (independently owned)

$10.4 M

$1 M (10%)

Private Wine and Specialty Stores

$2.6 M

$1 M (27.7%)

Other Wholesale

$0.2M

$0.02 M (10.8%)

Compared to last year, the NSLC benefited from the addition of seven new agency stores which had a positive impact on sales. However, this was offset by lower sales to the Private Wine and Specialty stores (PWSS) due in part to a transition in inventory ownership from the NSLC to PWSS owners. Additionally, in the prior year the NSLC benefited from one-time gains on property dispositions amounting to approximately $700,000. Adjusted for this one-time gain, year over year earnings growth was 1.5%.

Operating Expense Ratio

The NSLC’s operating expense ratio for the year – including amortization and depreciation – was 15.9% compared to 15.6% reported over the prior year.

Board Expenses

The NSLC released the Board of Directors’ expenses for the second quarter. These expenses amounted to $5.19 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 December 28, 2014

Q3

       2014/2015                             2013/2014

Sales Volume (Hectolitres)

         190,921                                193,073

Spirits

        $ 46,479,044                        $ 48,099,233

Wine

 36,947,984                           36,687,598

Beer

 65,675,120                           66,098,370

Ready to Drink

5,804,097                              5,133,986

Non-liquor

                         48,312                                  46,406

Total Sales by Category

            $ 154,954,557                    $ 156,065,592

Gross Profit

         $ 86,746,278                      $ 86,103,053

Store Operating Expenses

                 (15,394,448)                         (15,717,377)

Gross Operating Income

                $ 71,351,830                       $ 70,385,676

Other Corporate Expenses & Other Earnings

                  (9,311,968)                           (8,563,234)

Income from Operations

        $ 62,039,862                     $ 61,822,442

 For the 9 months ended December 28, 2014

 
 
 
 
 
 
 
                                                                                                                             

YTD Q3

           2014/2015                         2013/2014

Sales Volume (Hectolitres)

            617,998                             624,623

Spirits

           $ 124,999,637                   $ 130,123,501

Wine

       102,396,246                      101,414,965

Beer

        217,568,813                     220,721,778

Ready to Drink

      23,292,560                      19,800,493

Non-liquor

                         107,825                             101,740

Total Sales by Category

              $ 468,365,080                $ 472,162,476

Gross Profit

           $ 259,258,519                 $ 258,397,387

Store Operating Expenses

                   (45,810,823)                    (46,208,679)

Gross Operating Income

                $ 213,447,696                   $ 212,188,708

Other Corporate Expenses & Other Earnings

                    (27,441,491)                     (26,398,387)

Income from Operations

        $ 186,006,205                  $ 185,790,321