NSLC Announces 2016 Year End Results

NSLC Announces 2016 Year-End Results

Halifax, June 28, 2016 – The NSLC released its year-end results today (April 1, 2015 to March 31, 2016). Compared to last year:

Net income (earnings) totaled $241.3 million; up $13.3 million or

5.8%

Total sales were $607.6 million; an increase of $16.3 million or 2.8%

Total volume of alcohol sold was up 1.7%

Overall retail customer transactions (purchases) were up 1.1%, while the average dollar value of each transaction grew by 1.0%.

 

“I am very pleased to report a strong year for our company in 2015-2016,” says NSLC President & CEO Bret Mitchell. “While several factors contributed to these results, including our efforts to control costs, they confirm we’re focusing on the

right things: Customer service excellence, promoting responsible enjoyment, and supporting local industry.”

Local Product Sales Highlights

Nova Scotia wine sales (made with locally grown grapes) grew by 8.7% to $9.6 million.

NS craft beer sales grew by 25.5% to $7.6 million. The craft beer industry has grown significantly over the past year, and now comprises four percent

of all beer sold. There are now 32 microbreweries in Nova Scotia and more than 40 craft beer listings available at NSLC stores.

NS spirit sales grew by 177.3% to $1.5 million. Nova Scotia distillers had a very strong year in sales through NSLC stores. Awareness and popularity of local spirits continued to grow and was helped along after several of the local

varieties carried by the NSLC were recognized and won medals this spring at the World Spirits Competition in San Francisco.

NS commercial wine sales (produced here with imported grapes) were up 7.3% to $21.7 million.

NS commercial beer sales were stable in 2015-2016, at $160.5 million.

NS ready-to-drink products, which are largely ciders, had a strong year with sales increasing by 44.4%. The popularity of ciders in Nova Scotia continues to grow, and now comprises 22 percent of all ready-to-drink sales.

Business Highlights

 

Category

Revenue

Volume

 

 

Per Cent of

 

(Hectoliters)

 

Total Sales

 

 

 

 

 

 

Wine

4.4% to $135.6M

4.1%

 

 

22.3%

 

Spirits

1.4% to $162.9M

0.7%

 

 

26.8%

 

Beer

2.1% to $278.7M

0.9%

 

 

45.9%

 

Ready-To-Drink

8.9% to $30.2M

9.0%

 

 

5.0%

Sales by Channel

 

 

 

 

 

 

 

 

 

 

 

 

 

Channel

 

 

Sales

Change

 

 

 

 

 

 

 

NSLC Retail Stores

 

 

$497.7 M

$10.4 M (2.1%)

 

Licensees (bars/restaurants/pubs)

 

$53.6 M

$1.1

M (2.1%)

 

Agency Stores (independently owned)

 

$44.4 M

$3.6

M (8.9%)

 

Private Wine and Specialty Stores

 

$10.9 M

$1.2

M (12.1%)

 

Other Wholesale

 

 

$0.9M

$0.04 M (4.5%)

Financial Highlights

For the quarter ended March 31, 2016

Q4

 

2015/2016

 

2014/2015

Sales Volume (Hectolitres)

 

165,533

 

157,888

Spirits

 

36,812,468

 

35,668,218

Wine

 

29,242,499

 

27,420,810

Beer

 

58,048,071

 

55,381,190

Ready to Drink

 

5,071,693

 

4,446,664

Non-liquor

 

19,346

 

18,058

Total Sales by Category

$

129,194,076

$

122,934,940

Gross Profit

 

72,433,829

 

68,534,357

Store Operating Expenses

 

(15,962,980)

 

(15,471,029)

Gross Operating Income

 

56,470,849

 

53,063,328

Other Corporate Expenses & Other Earnings

 

(8,479,968)

 

(11,083,051)

Income from Operations

$

47,990,881

$

41,980,277

 

 

 

 

 

 

Operating Expense Ratio 

The NSLC’s operating expense ratio for the year – including amortization and depreciation – was 15.9% compared to 16.9% reported over the prior year.

Board Expenses

The NSLC released the Board of Directors’ expenses for the fourth quarter. These expenses amounted to $6.06 per Director, per day. An electronic version of these expenses is available at www.myNSLC.com.

Responsibility

Other key achievements for the NSLC in 2015-2016 include reducing greenhouse gas emissions and delivering our responsible enjoyment mandate. Through our We ID program our retail employees asked for ID 1.7 million times in 2015-2016,and

refused the sale more than 13,000 times. Community-based fundraising programs administered by NSLC and supported by our customers raised over $300,000.

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 www.mynslc.com

For more information please contact:

Beverley Ware

Nova Scotia Liquor Corporation

Beverley.ware@myNSLC.com

O: (902) 450-5920

M: (902) 456-5040

 

For the 12 months ended March 31, 2016

YTD Q4

 

2015/2016

 

2014/2015

Sales Volume (Hectolitres)

 

788,756

 

775,886

Spirits

 

162,937,174

 

160,667,855

Wine

 

135,581,539

 

129,817,056

Beer

 

278,746,585

 

272,950,002

Ready to Drink

 

30,198,868

 

27,739,224

Non-liquor

 

120,421

 

125,883

Total Sales by Category

$

607,584,588

$

591,300,020

Gross Profit

 

337,973,579

 

327,792,876

Store Operating Expenses

 

(61,231,677)

 

(61,281,852)

Gross Operating Income

 

276,741,902

 

266,511,024

Other Corporate Expenses & Other Earnings

 

(35,484,804)

 

(38,524,542)

Income from Operations

$

241,257,098

$

227,986,482