NSLC sees earnings increase in latest report
HALIFAX — The Nova Scotia Liquor Corp. can raise a toast to its latest financial results.
The NSLC reported an 11 per cent increase in earnings to $274.5 million for the period from April 1, 2020, to March 31, 2021. Total sales for the year were $793 million, with beverage alcohol sales of $707 million and cannabis sales of $86 million.
“A full year in pandemic mode certainly impacted our financial performance,” said Greg Hughes, president and CEO, in a news release issued Tuesday. “I am tremendously proud of the NSLC team who have shown their resiliency and ability to adapt while supporting each other, our communities and our customers.”
As had been noted earlier by the corporation, customers’ purchasing patterns changed with the pandemic, resulting in growth in overall sales. While there was an 8.9 per cent decrease in the number of transactions, there was a 23.1 per cent increase in the average value of those transactions. During the year, sales to private wine and specialty stores were up 7.9 per cent, and sales to agency stores were up 35.7 per cent, contributing to an overall 7.9 per cent increase in beverage alcohol sales.
Sales to bars, restaurants and pubs were down 52.9 per cent, compared with the same period in the previous fiscal year, especially in the Halifax area, the corporation said, due to COVID-19 restrictions.
“We were pleased to see our customers continue to be passionate about supporting our local industry partners,” Hughes said in the release.
Sales of local beverage alcohol and cannabis increased 30.2 per cent overall to $92.5 million.
The Crown corporation that controls sales of alcoholic beverages and recreational cannabis in the province added 12 new cannabis outlets to its network. Sales increased 21.1 per cent, and the average price per gram decreased by 28 per cent per cent to $7.16. Customers also purchased more 28-gram pack sizes, which carry a lower price per gram, contributing to a 25 per cent increase in the average dollar value of each transaction.
“This was an unprecedented year in many ways,” said Hughes in the release. “We navigated through it together, executing on our strategic priorities, adapting our operations and providing a healthy return to the province.”
Local product sales highlights:
Nova Scotia ready-todrink products continued to lead the growth in local product sales with a 78.5 per cent increase in sales to $28.6 million. This was driven by low-calorie vodka coolers and sweeter coolers recently introduced to the market.
Nova Scotia craft beer saw growth of 10.8 per cent to $22.3 million. The NSLC lists products from 86 local breweries, up from 47 five years ago.
Nova Scotia spirit sales grew 19.1 per cent to $11.2 million.
Nova Scotia wine sales grew 8.2 per cent to $13.6 million.
Nova Scotia cannabis sales grew 30.1 per cent to $16.9 million. Nova Scotia cannabis accounts for 19.6 per cent of all cannabis sales.