NSLC Announces 2015 Year-end Results

The Nova Scotia Liquor Corporation (NSLC) released its year-end results today (April 1, 2014 to March 31, 2015). Compared to last year:

  • Net income (earnings) totaled $228 million; down $0.3 million or 0.1%
  • Total sales were $591 million; down $1.9 million
  • Total volume of alcohol sold was down 0.8%, following a 2.8% decline in the prior year
  • Overall retail customer transactions (purchases) were down 1.7%, however; the average dollar value of each transaction grew by 1.5%

“In spite of continued volume declines and fewer customer transactions, we exceeded our profit expectations for the year,” said Bret Mitchell, NSLC President and CEO. “And accounting for the full year impact of our licensee discount program and the sale of properties the year prior, our net income was up by $1.96 million or 0.7%.”

Local Product Highlights for the YEAR:

  • Nova Scotia wine sales rose 12.0% to $11.6M, building on the 10.6% growth last year
  • Nova Scotia cider sales increased 55.4% to $1.2M on top of the 146% increase the year prior
  • Nova Scotia craft beer sales rose 25.4% to $5.1M, building on the 22.0% growth last year
  • Nova Scotia spirit sales grew by 80.7% to $0.5M, building on the 0.7% growth last year*

Local Product Highlights for the QUARTER:

  • Sales of Nova Scotia wines grew by 21.6%, building on the flat growth in Q4 last year
  • Sales of Nova Scotia ciders increased 38.8% on top of an increase of 104% in the year prior
  • Sales of Nova Scotia craft beers grew by 15.7%, building on the 34.0% growth last year
  • Sales of Nova Scotia spirits grew by 386.7%, building on the 0.7% drop the year prior

*Growth of local spirits was driven by the launch of a new brand, Authentic Seacoast Distilling.

Year End Sales Summary (2015 vs. 2014)

Category

Revenue

Volume (Hectoliters)

Percent of Total Sales

Wine

1.7 % to $129.8M

↑ 0.4 %

22.0%

Spirits

↓ 2.8 % to $160.7M

↓ 0.4 %

27.2%

Beer

↓ 1.2 % to $273.0M

↓ 2.2 %

46.2%

Ready-To-Drink

17.1 % to $27.7M

21.0 %

     4.7%

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

Category

Revenue

Volume (Hectoliters)

Percent of Total Sales

Wine

4.4 % to $27.4 M

 ↑ 3.4%

 22.3 %

Spirits

1.2 % to $35.7 M

4.0 %

 29.0 %

Beer

0.4 % to $55.4 M

↓ 1.5 %

 45.1%

Ready-To-Drink

14.3 % to $4.4 M

   ↑17.3 %

   3.6%

 
 
 
 
 
 
 
 

Year End Business Highlights

Year Sales by Channel 

Channel

Total Sales

Change from last year

NSLC Retail Store

$487.2 million

$1.0 million

Licensees (bars/restaurants)

$52.5 million

$1.9 million

Agency Stores (franchised stores)

$40.8 million

$3.1 million

Private Wine and Specialty Stores

$9.7 million

$2.0 million

NOTE: Agency store sales benefitted from the addition of seven new agency stores versus last year.

Operating Expense Ratio

The NSLC’s operating expense ratio for the year – including amortization and depreciation – was 16.9% compared to 16.3% reported over the prior year.

Board Expenses

The NSLC released the Board of Directors’ expenses for the fourth quarter. These expenses amounted to $4.68 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, 2015

Q4

        2014/2015

              2013/2014

Sales Volume (Hectolitres)

       157,888

              157,762

Spirits

         $ 35,668,218

             $ 35,233,765

Wine

  27,420,810

      26,255,894

Beer

   55,381,190

     55,605,030

Ready to Drink

 4,446,664

      3,890,573

Non-liquor

                         18,058

18,225

Total Sales by Category

            $ 122,934,940

$ 121,003,488

Gross Profit

 68,534,357

       66,767,479

Store Operating Expenses

                (15,471,029)

(14,691,383)

Gross Operating Income

             $ 53,063,328

$ 52,076,096

Other Corporate Expenses & Other Earnings

                 (11,083,051)

(9,620,861)

Income from Operations

        $ 41,980,277

             $ 42,455,235

 

For the 12 months ended March 31, 2015

YTD Q4

        2014/2015

             2013/2014

Sales Volume (Hectolitres)

        775,886

             782,385

Spirits

        $ 160,667,855

            $ 165,357,266

Wine

    129,817,056

       127,670,859

Beer

  272,950,002

      276,326,808

Ready to Drink

  27,739,224

       23,691,066

Non-liquor

                        125,883

119,965

Total Sales by Category

            $ 591,300,020

$ 593,165,964

Gross Profit

        $ 327,792,876

            $ 325,164,867

Store Operating Expenses

                 (61,281,852)

(60,900,062)

Gross Operating Income

             $ 266,511,024

$ 264,264,805

Other Corporate Expenses & Other Earnings

                (38,524,542)

(36,019,248)

Income from Operations

      $ 227,986,482

          $ 228,245,557