NSLC Releases Year-End Financial Performance

Halifax, June 25, 2024 – The NSLC released its year-end financial results today (April 1, 2023 – March 31, 2024), reporting total sales of $874.5 million for the year, with beverage alcohol sales of $753.4 million and cannabis sales of $121.0 million. Total earnings for this fiscal period were $283.8 million, a 0.3% decrease compared to this time last year.

“This past fiscal year proved to be challenging for the NSLC team and our shoppers,” said Greg Hughes, President & CEO. “Despite dealing with forest fires, floods, and severe storms, our team did an amazing job getting through them all. I am extremely proud of their dedication to deliver on our mandate while taking care of one another, and our results reflect their incredible efforts.” Hughes shared.

Beverage alcohol sales increased by 0.5% with a 4.2% decrease in the total volume sold, and cannabis sales increased by 8.9%. Local beverage alcohol continues to perform well with a 3.5% increase to $94.4 million. Beverage alcohol transactions for the year decreased by 2.3% and the average basket increased by 3.0% to $39.78. Cannabis transactions increased by 12.2% with the average basket size decreasing by 3.0% to $37.27, partly reflective of a 4.0% reduction in the average price per gram to $5.96.

The NSLC continues to make access to a safe and legal supply of cannabis to Nova Scotians a priority, adding an additional location bringing our cannabis retail network to 49 locations across the province. Currently, 79% of Nova Scotians live within 10 kilometers of a safe supply of cannabis.

“We continue to see strong growth in cannabis sales demonstrating our continued progress in competing with the illicit cannabis market,” said Hughes. “In addition to the expansion of our cannabis retail network, our strong vendor partnerships, including our valued local cannabis producers, have played an important role.”

Sales across most NSLC channels (Licensees, Agency Stores and online) were favourable with a 2.3% increase in sales to bars, restaurants, and pubs, a 2.7% increase in sales to Agency Stores, and a 20.2% increase in online sales. Private Wine and Specialty Stores continued to work through existing inventory resulting in a 14.0% decrease in sales.

This past year, the NSLC launched a new responsibility campaign, What are you willing to miss? designed to draw attention to the special moments, celebrations and milestones that could be missed if they chose to drive impaired.

“At the heart of everything we do is our commitment to social responsibility,” shared Hughes. “We take our role as responsible retailer of beverage alcohol and cannabis seriously, and part of that work is our commitment to sharing messages that encourage Nova Scotians to plan ahead and consume the products we sell, responsibly.”

In addition to investing in awareness, the NSLC also makes community investment a priority. Through our community investment program, and together with our teams, partners, shoppers, suppliers, and participating Agency stores, the NSLC invested $1.73 million in more than 100 charities and causes across the province, including a record-breaking total of $685,000 for the month-long IWK Campaign.

Business Highlights

• The retail team continues to be vigilant with responsible sales, challenging more than 2.2 million shoppers for identification and refusing nearly 16,000 sales.
• WeID Mystery Shop scores at retail were 91% for the year, confirming our shoppers who appear to be under 30 years of age are challenged for identification.
• Added one cannabis store to the network: Young Street

Community Investment Highlights

• For the Good of our Community Fund, with the support of our suppliers, awarded $140,000 to 11 Nova Scotia organizations who support community well-being, including food security, affordable housing, mental health wrap-around supports, and the environment.
• Together with our team members, supplier partners, generous shoppers, and participating Agency stores, we raised a total of $685,000 for the IWK Foundation – the most significant fundraising effort in the NSLC’s history.
• On the heels of our IWK Campaign, we kicked off a week-long at-cash campaign in support of Red Cross Canada Wildfire Fund Appeal. Together with our team members and generous shoppers, we raised $200,000.
• In November, we launched a new responsibility campaign, What Are You Willing to Miss? To support the launch, we partnered with Halifax Transit for the second year in a row to provide free rides to 39,886 riders on one of the busiest weekends of the holiday season. Rides were free after 6:00 pm on Friday, December 1 and Saturday, December 2, 2023.
• Together with our team members, generous shoppers, and suppliers, we raised $320,000 for Feed Nova Scotia and the Mental Health Foundation of Nova Scotia through our 2023 holiday at-cash campaign.
• Partnered with MADD Canada to support their school assembly program to create awareness of the dangers of drinking and driving. Our funding helped deliver 47 presentations across Nova Scotia reaching over 7,000 students.
• 429 NSLC employees volunteered more than 3,000 hours throughout this fiscal to give back to our communities.

Financial Highlights

(Compared to the same period last year):

• Earnings for the year totaled $283.8 million; a decrease of $0.9 million or 0.3%.
• Total sales were $874.5 million; an increase of $13.8 million or 1.6%.
• Cannabis sales were $121.0 million; an increase of 8.9%.
• Beverage alcohol sales were $753.4 million; an increase of 0.5%.
• Retail shopper transactions for beverage alcohol decreased by 2.3%, and the average dollar value of each transaction increased by 3.0% to $39.78.
• The total volume of beverage alcohol sold decreased by 4.2%.
• Retail shopper transactions for cannabis increased by 12.2%, and the average dollar value of each transaction decreased by 3.0% to $37.27.

Local Product Sales Highlights

Beverage Alcohol

• Nova Scotia beer sales increased by 5.7% to $30.3 million.
• Nova Scotia wine sales increased by 1.8% to $17.1 million.
• Nova Scotia spirit sales decreased by 0.3% to $12.8 million.
• Nova Scotia ready-to-drink sales increased by 4.1% to $34.3 million.

Cannabis

• Nova Scotia cannabis sales increased by 17.9% to $39.5 million.
• Nova Scotia cannabis accounts for 32.7% of all cannabis sales.

Operating Expense Ratio

The NSLC’s operating expense ratio for the fiscal year, including amortization and depreciation, was 17.6% compared to 16.7% reported the prior year.

Board Expenses

The NSLC Board of Directors’ expenses for the fourth quarter amounted to $4.04 per Director, per day.

About the NSLC

The NSLC manages the safe and responsible sale of beverage alcohol and cannabis in Nova Scotia, returning 100% of its profits to government to help fund key public services. The NSLC aspires to be a trusted retailer, partner, employer, and responsible industry steward that is helping to create a stronger Nova Scotia.

For more information please contact:

Terah McKinnon
Senior Communications Advisor, External Relations
media@myNSLC.com 
Office: 902-450-5847
Mobile: 902-717-0979