The Nova Scotia Liquor Corporation (NSLC) released its quarter one results today (April 1, 2018 to July 1, 2018). Compared to last year:
- Net income (earnings) totaled $59 million; down $1.7 million or 2.8%
- Total sales were $156.8 million; a decrease of $1.9 million or 1.2%
- Total volume of beverage alcohol sold was down 0.8%
- Overall retail customer transactions (purchases) were down 2.0%, and the average dollar value of each transaction grew by 0.5%
Changes to net income are a result of timing of the Easter Holiday weekend (compared to last year), as well as preparations for the retailing of recreational cannabis. “We expected a decline in net income but are pleased to report we are performing ahead of plan for the first quarter,” said Bret Mitchell, NSLC President & CEO. “Sales increased as the quarter progressed, and we are optimistic we are on track to meet our year-end forecasts.”
Mr. Mitchell said the corporation continues to focus on providing exceptional customer service, promote responsible enjoyment, support local industry and offer value to customers. “We are diligent with expense controls, make improvements that drive efficiencies and are excited to see continued strong growth in the sales of local products.”
Sales Comparison by Category
||Volume (Hectolitres sold by NSLC)
||Per Cent of Total Sales
||1.3% to $34.3M
||1.2% to $39.1M
||2.9% to $72.4M
||12.7% to $11.0M
Sales by Channel
|NSLC Retail Stores
|Agency Stores (independently owned)
|Private Wine and Specialty Stores
Operating Expense Ratio
The NSLC’s operating expense ratio for the quarter – including amortization and depreciation – was 16.6% compared to 16.2% reported the prior year.
The NSLC released the Board of Directors’ expenses for the first quarter. These expenses amounted to $2.87 per Director, per day. An electronic version of these expenses is available HERE.
- We implemented an online ordering system for our wholesale customers, making it easier for them to do business with us.
- Portland Street became our first Signature store in June, offering a Port section with a tasting unit, a premium spirits section, limited finds and a full assortment across all categories.
- We continue our commitment to corporate social responsibility with Cabbioke taking part in 25 parades and 26 events across the province this fiscal year, celebrating responsible choices throughout our local communities. Well over 100 employees have volunteered to support these events.
- Our employees continue to be vigilant with ID challenges to keep beverage alcohol out of the hands of minors. Last year, we asked for ID 1.7 million times.
Local Product Sales Highlights
The growth in local industry continues to be strong, driven by the expansion of new businesses, quality products and innovation in the categories.
- Nova Scotia farm wine sales increased by 1.1% to $2.6 million
- Nova Scotia craft beer sales grew by 29.9% to $4.2 million. The NSLC lists products from 21 local breweries and 1 of every 4 beer listings on NSLC shelves is a local craft beer.
- Nova Scotia commercial beer contributed just over $36 million in sales.
- Nova Scotia spirit sales grew by 30.3% to $1.6 million.
- Nova Scotia commercial wine sales (produced in Nova Scotia with imported grapes) were down 4.2% to $5.6 million.
- Nova Scotia ready-to-drink products had a strong quarter with sales increasing by 23.7% to $1.3 million. This strong growth was driven mainly by cider products.
For the quarter ended July 1, 2018
|Sales Volume (Hectolitres)
|Total Sales by Category
|Store Operating Expenses
|Gross Operating income
|Other Corporate Expenses & Other earnings
|Income from Operations
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 click here.
For more information please contact:
Beverley Ware, Communications Advisor
Nova Scotia Liquor Corporation
Phone (O): (902) 450-5920 (M) 902-456-5040