Halifax, October 30, 2018 – The NSLC released its second quarter results today (July 2, 2018 to September 30, 2018) Compared to last year:
- Net income (earnings) totaled $70 million; down $0.8 million or 1.2%
- Total sales were $182.2 million; an increase of $5.4 million or 3.1%
- Total volume of beverage alcohol sold was up 2.9%
- Retail customer transactions (purchases) were up 1.9%, but the average dollar value of each transaction fell by 3.4%
“Innovative products in the Ready-To-Drink category, strong local products sales, and favourable summer weather contributed to our solid financial performance this quarter. We are optimistic we are on track to meet our financial obligations this fiscal year” said Bret Mitchell, NSLC President & CEO.
Business Highlights
Sales Comparison by Category
| Category |
Revenue |
Volume (Hectolitres sold by NSLC) |
Per Cent of Total Sales |
| Wine |
1.7% to $38.8M |
2.9% |
21.2% |
| Spirits |
1.3% to $43.2M |
0.9% |
23.6% |
| Beer |
2.7% to $83.6M |
1.7% |
45.7% |
| Ready-To-Drink |
25.7% to $16.6M |
24.7% |
9.1% |
Sales by Channel
| Channel |
Sales |
Change |
| NSLC Retail Stores |
$147.9M |
$5.6M (4.0%) |
| Licensees (bars/restaurants/pubs) |
$15.1M |
$0.1M (0.5%) |
| Agency Stores (independently owned) |
$15.6M |
$0.2M (1.3%) |
| Private Wine and Specialty Stores |
$3.4M |
$0.4M (9.4%) |
| Other Wholesale |
$0.2M |
$0.1M (37.7%) |
Business Highlights
- Efforts to promote responsible choices were in full-swing with the NSLC’s Cabbioke participating in eight parades, 16 community events, 43 store visits with 78 employee volunteers.
- Construction was completed on the first cannabis store in Amherst.
- A new NSLC Express store was opened on Dunbrack Street in Halifax.
- Two separate awareness campaigns for cannabis, ‘Need to Know’ and ‘What to Expect’, were launched.
- The first purchase orders for recreational cannabis were placed with 14 licensed producers.
Local Product Sales Highlights
The growth in local industry continues to be strong, driven by innovation in the categories, the expansion of businesses and quality products.
- Nova Scotia wine sales grew by 6.7% to $3.8 million.
- Nova Scotia craft beer sales grew by 32.3% to $5.2 million.
- Nova Scotia spirit sales grew by 34.7% to $2.2 million.
- Nova Scotia commercial wine sales (produced in Nova Scotia with imported grapes) were down 1.9% to $5.9 million.
- Nova Scotia commercial beer contributed $47 million in sales, up $1 million or 2.2%.
- Nova Scotia ready-to-drink products, which are largely ciders, had a strong quarter with sales increasing by 26.6% to $1.8 million.
Operating Expense Ratio
The NSLC’s operating expense ratio for the year – including amortization and depreciation – was 15.3% compared to 14.2% reported the prior year. This increase is largely a result of the preparations required to offer cannabis as a new product category.
Board Expenses
The NSLC released the Board of Directors’ expenses for the fourth quarter. These expenses amounted to $2.27 per Director, per day. An electronic version of these expenses is available here.
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 $200 million in Nova Scotia-produced products every year. For more information about the NSLC, please visit our website at myNSLC.com.
For more information please contact:
Beverley Ware, Communications Advisor
beverley.ware@myNSLC.com
O: (902) 450-5920
M: (902) 456-5040
Financial Highlights
For the quarter ended September 30, 2018
| Q2 |
2018/2019 |
2017/2018 |
| Sales Volume (Hectolitres) |
239,383 |
232,533 |
| Spirits |
$43,189,775 |
$42,622,751 |
| Wine |
38,817,066 |
39,500,048 |
| Beer |
83,555,929 |
81,414,070 |
| Ready-To-Drink |
16,608,298 |
13,190,351 |
| Non-Liquor |
29,552 |
35,998 |
| Total Sales by Category |
$182,200,620 |
$176,763,218 |
|
|
|
| Gross Profit |
$98,070,552 |
$95,994,400 |
| Store Operating Expenses |
(17,618,368) |
(15,978,764) |
| Gross Operating income |
$80,452,184 |
$80,015,636 |
| Other Corporate Expenses & Other earnings |
(10,329,998) |
(9,073,362) |
| Income from Operations |
$70,122,186 |
$70,942,275 |
For the 6 months ended September 30, 2018
| YTD Q2 |
2018/2019 |
2017/2018 |
| Sales Volume (Hectolitres) |
443,077 |
437,972 |
| Spirits |
$82,253,709 |
$82,176,146 |
| Wine |
73,076,169 |
74,212,413 |
| Beer |
155,982,752 |
156,019,773 |
| Ready-To-Drink |
27,639,813 |
22,979,551 |
| Non-Liquor |
53,251 |
61,844 |
| Total Sales by Category |
$339,005,695 |
$335,449,726 |
|
|
|
| Gross Profit |
$183,097,937 |
$182,389,975 |
| Store Operating Expenses |
(33,545,017) |
(31,949,852) |
| Gross Operating income |
$149,552,920 |
$150,440,123 |
| Other Corporate Expenses & Other earnings |
(20,430,451) |
(18,803,442) |
| Income from Operations |
$129,122,469 |
$131,636,682 |