NSLC Releases First Quarter Financial Performance

Halifax – August 20, 2024 ­­– The NSLC released its first quarter financial results today (April 1, 2024 – June 30, 2024), reporting a 0.5% decrease in earnings to $70.4 million. Total sales for the quarter were up 1.5% to $222.5 million, with beverage alcohol sales of $191.3 million and cannabis sales of $31.2 million.

“Despite a slight increase in sales, we continue to see the trend of volume decline in beverage alcohol, while the volume of cannabis sold increases,” said Greg Hughes, President & CEO.

Beverage alcohol sales increased 0.7% and cannabis sales increased 7.3% when compared to the previous year. Sales to bars, pubs, and restaurants declined 1.1% to $13.5 million in this quarter, while other channels increased, with sales to Private Wine and Specialty Stores up 32.1% to $5.9 million, and sales to Agency stores up 3.7% to $17.8 million.

Sales of local beverage alcohol increased 5.4% to $24.7 million, led by ready-to-drink (RTD) sales, which grew 11.2% to $9.8 million. Despite a slight decline of 1.4% in local cannabis sales to $9.3 million, local cannabis represents 29.9% of total cannabis sales.

“Expanding access to safe and legal cannabis continues to be a primary focus for us, and we continue to look for ways to combat the illicit cannabis market,” Hughes shared. “We were pleased to add another cannabis store to our retail network this quarter.”

In May, the NSLC opened our newest cannabis location, with the completed renovation of our Shelburne store. This brings the total number of NSLC cannabis locations to 50 in the province, up from the original 12 when cannabis was first legalized in 2018. The NSLC is the only authorized cannabis retailer in Nova Scotia.

Our people are driven by the good we do and our commitment to having a positive impact on the communities we serve.

With the generous support of our team members, shoppers, and suppliers, and participating Agency stores, we raised a record-breaking $750,000 for the month-long IWK Campaign in May.

In April, with the support of our supplier partners, the NSLC’s For the Good of our Community Fund recipients were announced, which resulted in total funding of $140,000 to provide grants to 14 non-profit organizations across the province. This included supporting the Wekope’kwitk Mijipjeweyuo’kuom Society Millbrook Food Bank to provide food security workshops on topics such as budgeting, food preparation, and other helpful resources designed with tips from elders, and the Cumberland Homelessness and Housing Support Association which helps individuals who are experiencing homelessness and seeking emergency shelter accommodations by providing healthy meals.

In all, 68 NSLC employees volunteered 715.5 hours to give back to our communities throughout the quarter.

Q1 Business Highlights

• Our diligent frontline employees asked customers who appeared to be under the age of 30 for valid photo ID 555,860 times and refused service 3,546 times.
• Together with our team members, supplier partners, generous shoppers, and participating Agency stores, we raised a total of $750,000 for the IWK Foundation – the most significant fundraising effort in the NSLC’s history.
• We completed renovations on our Weymouth and Shelburne stores, which included the opening of our 50th cannabis location in Shelburne.

Financial Highlights

(Compared to the same period last year):

• Net income (earnings) totaled $70.4 million, a decrease of $0.3 million or 0.5%.
• Total sales were $222.5 million, an increase of $3.4 million or 1.5%.
• Cannabis sales were $31.2 million, an increase of 7.3%.
• Beverage alcohol sales were $191.3 million, an increase of 0.7%.
• The total sales of local beverage alcohol sold was $24.7 million, an increase of 5.4%.
• Retail customer transactions for beverage alcohol decreased by 1.7% and the average value of each transaction was $38.97, an increase of 1.2%.
• Retail customer transactions for cannabis increased by 7.7% and the average dollar value of each transaction was $37.00, a decrease of 0.4%.
• The average price per gram for cannabis decreased by 2.0% to $5.90.

Local Product Sales Highlights

Beverage Alcohol

• Nova Scotia ready-to-drink sales led the growth in local products with an 11.2% increase to $9.8 million.
  • Local cooler sales increased by 13.8% to $8.0 million.
  • Local cider sales increased by 0.6% to $1.7 million.
• Nova Scotia craft beer sales increased by 8.9% to $8.4 million.
• Nova Scotia spirit sales decreased by 3.5% to $2.8 million.
• Nova Scotia wine sales decreased by 7.3% to $3.8 million.

Cannabis

• Nova Scotia cannabis sales decreased 1.4% to $9.3 million.
• Nova Scotia cannabis accounts for 29.9% of all cannabis sales.

Operating Expense Ratio

The NSLC’s operating expense ratio for the fiscal quarter, including amortization and depreciation, was 17.9% compared to 17.2% reported the prior year. 

Board Expenses

The NSLC released the Board of Directors’ expenses for the quarter. These expenses amounted to $1.95 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 please contact:

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