NSLC Releases Second Quarter Financial Performance

Halifax – December 3, 2024 - Today, the NSLC released its second quarter (July 1 – September 29, 2024) financial results, reporting a 0.5% increase in earnings to $83.8 million. Total sales for the quarter were up 1.5% to $245.8 million, with beverage alcohol sales increasing 1.2% to $213.2 million and cannabis sales increasing 3.9% to $32.6 million when compared to the previous year.

"This quarter we saw a slight increase in sales overall,” said Greg Hughes, President and CEO. “Cannabis, along with the ready-to-drink category, continue to perform well and are leading this growth.”

Sales to bars, pubs, and restaurants declined 0.8% to $14.6 million in this quarter, while other channels increased, with sales to Private Wine and Specialty Stores up 23.9% to $5.6 million, and sales to Agency stores up 4.9% to $20.9 million. 

Overall, sales of local beverage alcohol products increased 3.3% to $29.6 million, led by local ready-to-drink (RTD) with an increase in sales of 6.6% to $11.9 million, and an increase in craft beer sales of 4.1% to $9.5 million. Despite a decrease of 10.1%, local cannabis still represented 28.3% of total cannabis sales.

This quarter, with the support of our generous shoppers, our team members raised $77,150 for Feed Nova Scotia during our Labour Day Weekend at-cash fundraiser.

Our team members are also committed to giving their time. In all, 193 NSLC team members volunteered 1,474 hours throughout the quarter, including volunteering with Habitat for Humanity to help rebuild a home that was lost to the wildfires in Hammonds Plains in May 2023, participating in Pride Parades throughout the province, and volunteering with Special Olympics.

In July, the NSLC was the official Volunteer Program Partner for the 2024 Special Olympics Nova Scotia Provincial Summer Games held at Acadia University. Thirty team members from across the organization showed up to help - from helping at the opening ceremonies to timing events, signing-in athletes and volunteers, to helping with the closing ceremony.

We are always looking for ways to make a positive impact and give back to our communities and I am very proud of our team for their continued commitment to helping others,” Hughes shared. “Thanks to the generosity of our shoppers and supplier partners, our contributions are even greater.”

Q2 Business Highlights

• Our diligent frontline employees asked customers who appeared to be under the age of 30 for valid photo ID 572,313 times and refused service 3,684 times.
• Together with our team members and generous shoppers we raised a total of $77,150 for Feed Nova Scotia through our annual Labour Day at-cash campaign.
• In all, 193 NSLC team members volunteered 1,474 hours to give back to our communities throughout the quarter.
• To support our communities, team members walked in three Pride Parades across the province.
• The NSLC was the official Volunteer Program Partner for the 2024 Special Olympics Nova Scotia Provincial Summer Games held at Acadia University.

Financial Highlights

(Compared to the same period last year):

• Net income (earnings) totaled $83.8 million, an increase of $0.5 million or 0.5%.
• Total sales were $245.8 million, an increase of $3.7 million or 1.5%.
• Cannabis sales were $32.6 million, an increase of 3.9%.
• Beverage alcohol sales were $213.2 million, an increase of 1.2%.
• Total sales of local products were $38.9 million, a decrease 0.2%. 
• Retail customer transactions for beverage alcohol decreased by 3.5% and the average value of each transaction was $41.54, an increase of 3.8%.
• Retail customer transactions for cannabis increased by 3.4% and the average dollar value of each transaction was $37.22, an increase of 0.5%.
• The average price per gram for cannabis decreased by 2.0% to $5.88.

Local Product Sales Highlights

Beverage Alcohol

• Nova Scotia ready-to-drink sales led the growth in local products with a 6.6% increase to $11.9 million.
  • Local cooler sales increased by 8.4% to $9.9 million.
  • Local cider sales decreased by 1.2% to $2.0 million.
• Nova Scotia craft beer sales increased by 4.1% to $9.5 million.
• Nova Scotia spirit sales decreased by 1.8% to $3.2 million.
• Nova Scotia wine sales decreased by 1.9% to $5.1 million.

Cannabis

• Nova Scotia cannabis sales decreased 10.1% to $9.2 million.
• Nova Scotia cannabis accounts for 28.3% of all cannabis sales.

Operating Expense Ratio

The NSLC’s operating expense ratio for the fiscal quarter, including amortization and depreciation, was 16.0% compared to 15.4% reported the prior year. 

Board Expenses

The NSLC released the Board of Directors’ expenses for the quarter. These expenses amounted to $4.78 per Director, per day. An electronic version of these expenses are available to download.

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 about the NSLC, please visit our website at myNSLC.com.

For more information please contact:

Terah McKinnon

Senior Communications Advisor, External Relations

media@myNSLC.com 

Office: 902-450-5847