NSLC Releases Third-Quarter Financial Performance

Halifax – March 12, 2024 – The NSLC released its third-quarter financial results today (October 2, 2023 – December 31, 2023), reporting a 1.5% increase in earnings to $80.0 million. Total sales for the quarter were up 1.8% to $232.2 million, with an increase in both beverage alcohol and cannabis. There was a 0.4% increase in beverage alcohol sales to $201.4 million, and a 12.0% increase in cannabis sales to $30.9 million. 

“This quarter, we saw an increase in earnings despite the continued trend of volume decline in beverage alcohol,” says Greg Hughes, President & CEO. “During the pandemic beverage alcohol volume sales increased steadily for a few years. Over the last few quarters, we’ve been seeing a slow and gradual decline, as those trends resettle to pre-pandemic levels. When it comes to cannabis sales, however, we’ve been seeing the opposite trend, as cannabis sales continue to increase.” 

Support for local continues to be important to our customers. Third-quarter results show an increase in sales of all local product categories by 8.7% to $35.2 million. The ready-to-drink category, which includes coolers and ciders, led local beverage alcohol sales with a 7.2% increase to $8.1 million, and Nova Scotia cannabis sales grew 17.7% to $10.0 million, and local product continues to hold a significant percentage of market share, representing 32.5% of all cannabis sold in our retail network. 

In November, the NSLC was proud to launch a new Responsibility Campaign, What are you willing to miss? The campaign reminds Nova Scotians to not drive impaired by drawing attention to the important moments, celebrations and milestones that could be missed if they choose to drive impaired. To support the launch of the campaign, we partnered with Halifax Transit through our free-ride program for the second year in a row, to provide free transit rides to close to 40,000 riders on one of the busiest weekends of the holiday season. 

“Corporate social responsibility is at the heart of who we are, and we take our role as Nova Scotia’s responsible retailer of beverage alcohol and cannabis seriously,” Hughes explains. “We care about our people, our shoppers and our communities, and we are committed to sharing messages that encourage Nova Scotians to plan ahead when they consume the products we sell.” 

Our people are driven by the good we do and our commitment to having a positive impact on the communities we serve. This quarter, together, with the support of our team members, generous customers, and suppliers, we raised $320,000 for Feed Nova Scotia and the Mental Health Foundation of Nova Scotia through our 2023 holiday campaign. 

Q3 Business Highlights 

• Our diligent front-line employees asked customers who appeared to be under the age of 30 for valid photo ID 573,533 times and refused service 3,933 times.  
• 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 customers, and suppliers, we raised $320,000 for Feed Nova Scotia and the Mental Health Foundation of Nova Scotia through our 2023 holiday campaign. 
• To kick off this year's United Way fundraiser, NSLC team members volunteered for several in-person opportunities as part of our employee giving program. In October, team members painted the Habitat for Humanity Re-Store's showroom walls and bagged and delivered 330 meals for Shelter Nova Scotia locations across Halifax. Thanks to the generosity of our teams, we raised $11,000 for the 2023 United Way Employee Workplace Campaign. 
• 248 NSLC employees volunteered more than 1,100 hours throughout this quarter to give back to our communities. 

Financial Highlights (compared to the same period last year): 

• Net income (earnings) totaled $80.0 million, an increase of $1.2 million or 1.5%. 
• Total sales were $232.2 million, an increase of $4.2 million or 1.8%. 
• Cannabis sales were $30.9 million, an increase of 12.0%.  
• Beverage alcohol sales were $201.4 million, an increase of 0.4%. 
• The total sales of local beverage alcohol and local cannabis sold increased by 8.7% to $35.2 million. 
• Retail customer transactions for beverage alcohol decreased by 1.4% and the average value of each transaction increased by 2.5% to $42.10.  
• Retail customer transactions for cannabis increased by 14.5% and the average dollar value of each transaction decreased by 2.2% to $37.54.  
• The average price per gram for cannabis decreased by 4.3% to $5.96. 

Local Product Sales Highlights 

Beverage Alcohol 

• Nova Scotia ready-to-drink sales increased by 7.2% to $8.1 million.  
• Local cooler sales increased by 9.2% to $6.4 million. 
• Local cider sales increased by 0.3% to $1.7 million. 
• Nova Scotia craft beer sales increased by 6.1% to $7.6 million.  
• Nova Scotia spirit sales increased by 1.5% to $4.4 million.
• Nova Scotia wine sales increased by 5.1% to $5.1 million.  

Cannabis

• Nova Scotia cannabis sales led the growth in local products with a 17.7% increase in sales to $10.0 million. 
• Nova Scotia cannabis accounts for 32.5% of all cannabis sales. 

Sales by Channel

Operating Expense Ratio

The NSLC’s operating expense ratio for the fiscal quarter, including amortization and depreciation, was 16.6% compared to 16.2% reported the prior year. 

Board Expenses

The NSLC released the Board of Directors’ expenses for the quarter. These expenses amounted to $1.76 per Director, per day. An electronic version of these expenses is 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
O: (902) 450-5847
M: (902) 717-0979