HALIFAX, August 25, 2016 – The Nova Scotia Liquor Corporation (NSLC) released its quarter-end results today (April 1, 2016 to July 3, 2016). Compared to last year:
- Net income (earnings) totaled $62.1 million; up $5.8 million or 10.3%
- Total sales were $157.9 million; up $14.4 million or 10.1%
- Total volume sold was up 10.0%
- Customer transactions (purchases) were up 7.7%, while the average dollar value of each transaction grew by 2.0%
“We are pleased to see the positive sales trends of 2015-2016 continue into the new fiscal year,” says Bret Mitchell, NSLC President & CEO. “Although the quarter included more selling days than the same period last year, at this point we are still seeing strong performance across all of our product categories.”
The first quarter results benefited from seven additional selling days compared to Quarter one last year, as well as the Canada Day holiday, which occurred in Quarter two last year.
Local Product Highlights for the quarter:
- NS craft beers sales grew by 48.4% to $2.5M. There are now 36 licensed microbreweries in Nova Scotia, and a growing number of popular local craft beer listings in our stores.
- NS spirits sales grew by 141.4% to $0.6M. Local spirit sales continue to grow, on the strength of several brands, including Nova Scotia Spirit Company rum, gin and vodka, Calderra’s Hurricane 5 Whisky, Ironworks Rum, and Glynnevan Double Barrel Whisky.
- NS wine sales (using locally-grown grapes) were up by 16.6% to $2.4M. Nova Scotia wines are gaining in popularity at home and abroad, with several varieties being recognized with national and international awards during Q1.
- NS commercial wine sales (produced here without local grapes) were up 11.5% to $5.4M
- Sales of Nova Scotia ready-to-drink products – which are largely ciders made with locally grown apples - increased 84.6% to $0.6M. Two local brands in particular – Muwin Estate’s Bulwark Craft Cider, and Peller Estates No Boats on Sunday Cider – led the way in terms of sales.
Business Highlights
First Quarter Sales Summary (This year vs. last year)
|
Category
|
Revenue
|
Volume (Hectoliters)
|
Percent of Total Sales
|
|
Wine
|
↑ 8.5 % to $33.3 M
|
↑ 6.7 %
|
21.1 %
|
|
Spirits
|
↑ 7.6 % to $39.6 M
|
↑ 6.7 %
|
25.1 %
|
|
Beer
|
↑ 9.6 % to $75.5 M
|
↑ 9.2 %
|
47.8 %
|
|
Ready-To-Drink
|
↑ 33.6 % to $9.5 M
|
↑ 32.7 %
|
6.0 %
|
Sales by Channel
|
Channel
|
Total Sales
|
Change from last year
|
|
NSLC Retail Store
|
$128.7 million
|
↑ $11.4 million
|
|
Licensees (bars/restaurants)
|
$14.2 million
|
↑ $1.2 million
|
|
Agency Stores (franchised stores)
|
$12.3 million
|
↑ $1.9 million
|
|
Private Wine and Specialty Stores
|
$2.4 million
|
↓ $0.2 million
|
Operating Expense Ratio
The NSLC’s operating expense ratio for the quarter – including amortization and depreciation – was 15.6% compared to 16.3% reported for the same period last year.
Board Expenses
The NSLC released the Board of Directors’ expenses for the first quarter. These expenses amounted to $3.88 per Director, per day. An electronic version of these expenses is available at myNSLC.com.
About the NSLC
For over eighty 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 more than $190 million in locally-produced products every year. For more information about the NSLC, please visit our website at myNSLC.com.
For more information please contact:
Denise Corra
Nova Scotia Liquor Corporation
Phone: (902) 450-5920
Email: denise.corra@mynslc.com
Financial Highlights
For the quarter ended July 3, 2016
|
Q1
|
2016/2017
|
2015/2016
|
|
Sales Volume (Hectolitres)
|
209,089
|
190,128
|
|
Spirits
|
39,628,055
|
36,837,273
|
|
Wine
|
33,276,116
|
30,656,551
|
|
Beer
|
75,477,423
|
68,839,235
|
|
Ready to Drink
|
9,515,732
|
7,123,191
|
|
Non-liquor
|
26,801
|
22,273
|
|
Total Sales by Category
|
$ 157,924,128
|
$ 143,478,522
|
|
|
|
|
Gross Profit
|
86,723,687
|
79,763,301
|
|
Store Operating Expenses
|
(15,667,859)
|
(14,424,094)
|
|
Gross Operating Income
|
71,055,827
|
65,339,207
|
|
Other Corporate Expenses & Other Earnings
|
(8,928,034)
|
(9,011,236)
|
|
Income from Operations
|
$ 62,127,793
|
$ 56,327,971
|