NSLC Announces 2016 Third Quarter Results

Halifax, February 24, 2016 – The NSLC released its third quarter results today (September 28, 2015 to December 27, 2015). Compared to the same period last year:

-Net income (earnings) totaled $64.4 million; up $2.4 million or 3.9%

-Total sales were $157.8 million; an increase of $2.8 million or 1.8%

-Total volume of alcohol sold was up 1.2%

-Overall retail customer transactions (purchases) were up 1.2%, while the average dollar value of each transaction grew by 0.5%

“The NSLC had another strong quarter in Q3”, said Bret Mitchell, NSLC President & CEO. “The holiday season is always our biggest in terms of sales, and this year was even stronger than last year. In fact we saw modest increases in all of our product categories, thanks in part to new and exciting product offerings, especially from local producers, and some great product promotions on popular brands by our suppliers.”

Local Product Sales Highlights

Nova Scotia wine sales (made with locally grown grapes) grew by 14.7% to $2.8 million.

NS craft beer sales grew by 25.1% to $2.0 million. Thanks to strong growth in this category, Nova Scotia now boasts 23 microbreweries, and NSLC stores offer over 40 regular listings of locally brewed craft beer varieties.

NS spirit sales grew by 256.3% to $580,000. More than a quarter of that growth is due to the success of a single product. Fortress Amber Rum, which is produced by the Authentic Seacoast Company in Guysborough, was launched last February and sales have grown steadily every quarter since then.

Bret Mitchell says customers are connecting with products like Fortress Amber Rum because they love that it’s made locally. “Locally produced products speak to the heritage, culture and tradition of this province,” says Mitchell. “Nova Scotia’s producers put a lot of heart into every bottle, and because of that our customers understand they’re buying good quality.”

NS commercial wine sales (produced here with imported grapes) were up 5.8% to $5.9 million.

NS ready-to-drink products, which are largely ciders, had another strong quarter with sales increasing by 35.0%

1

Business Highlights

 

Category

Sales

Volume

 

 

Per Cent of

 

(Hectoliters)

 

Total Sales

 

 

 

 

 

 

Wine

3.9% to $38.4M

3.1%

 

 

24.3%

 

Spirits

0.8% to $46.9M

0.1%

 

 

29.7%

 

Beer

0.9% to $66.2M

0.6%

 

 

42.0%

 

Ready-To-Drink

8.1% to $6.3M

7.2%

 

 

4.0%

Sales by Channel

 

 

 

 

 

 

 

 

 

 

 

 

 

Channel

 

 

Sales

Change

 

 

 

 

 

 

 

NSLC Retail Stores

 

 

$130.9 M

$2.1 M (1.7%)

 

Licensees (bars/restaurants/pubs)

 

$13.1 M

$0.1

M (0.9%)

 

Agency Stores (independently owned)

 

$10.5 M

$0.2

M (1.6%)

 

Private Wine and Specialty Stores

 

$3.0 M

$0.4

M (14.2%)

 

Other Wholesale

 

 

$0.2M

$0.05 M (27.9%)

Operating Expense Ratio

The NSLC’s operating expense ratio for the quarter – including amortization and depreciation – was 15.3% compared to 15.9% reported for the same period last year.

Board Expenses

The NSLC released the Board of Directors’ expenses for the third quarter. These expenses amounted to $4.34 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 public services. As a true partner in our communities, the NSLC conducts its business with integrity, and respect for the environment, while suppo rting the sale of more than $195 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

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Financial

Highlights

 

 

For the quarter ended December 27, 2015

 

 

Q3

 

 

2015/2016

 

2014/2015

Sales Volume (Hectolitres)

 

 

193,179

 

190,921

Spirits

$

46,857,805

$

46,479,044

Wine

 

 

38,374,890

 

36,947,984

Beer

 

 

66,237,439

 

65,675,120

Ready to Drink

 

 

6,271,609

 

5,804,097

Non-liquor

 

 

47,227

 

48,312

Total Sales by Category

 

$

157,788,970

$

154,954,557

Gross Profit

$

88,650,189

$

86,746,278

Store Operating Expenses

 

 

(14,995,706)

 

(15,394,448)

Gross Operating Income

$

73,654,483

$

71,351,830

Other Corporate Expenses & Other Earnings

 

 

(9,206,976)

 

(9,311,968)

Income from Operations

$

64,447,507

$

62,039,862

 

 

 

 

 

 

For the 9 months ended December 27, 2015

YTD Q3

 

2015/2016

 

2014/2015

Sales Volume (Hectolitres)

 

623,223

 

617,998

Spirits

$

126,124,706

$

124,999,637

Wine

 

106,339,041

 

102,396,246

Beer

 

220,698,514

 

217,568,813

Ready to Drink

 

25,127,176

 

23,292,560

Non-liquor

 

101,075

 

107,825

Total Sales by Category

$

478,390,512

$

468,365,080

Gross Profit

$

265,539,750

$

259,258,519

Store Operating Expenses

 

(45,268,697)

 

(45,810,823)

Gross Operating Income

$

220,271,053

$

213,447,696

 

 

 

 

 

Other Corporate Expenses & Other Earnings

 

(27,004,836)

 

(27,441,491)

Income from Operations

$

193,266,217

$

186,006,205