NSLC profits down despite jump in alcohol, cannabis sales

The Nova Scotia Liquor Corporation is reporting a drop in profits in the most recent fiscal year, despite increased sales of cannabis and alcohol.

The NSLC said total sales hit $820.5 million, an increase of 3.5 per cent in the fiscal year from April 1, 2021 to March 31, 2022. However, the corporation’s overall earnings decreased to $268.7 million, a more than two per cent drop.

It said the decline was due to lower margins on local products and cannabis, higher payroll costs and increased freight costs.

Still, total alcohol sales rose to $718.7 million, a jump of 1.7 per cent compared to the last fiscal year. Additionally, cannabis sales grew to $107.7 million — a staggering 18.2 per cent climb.

Local beer sales jumped to $26.4 million, an 18.7 per cent increase, while wine sales hit $15.5 million, a 15.3 per cent increase.

Sales of spirits rose to

$12.6 million, a 12.2 per cent jump, while sales of readyto-drink products climbed to $30 million, up 5.1 per cent.

Local cannabis grew to $23.6 million in sales, an increase of 40.1 per cent.

The average price of cannabis was also down to $6.94 per gram, a 15.7 per cent drop.

Greg Hughes, NSLC CEO, said the corporation added 13 new cannabis locations in the last fiscal year and launched home delivery for alcohol products.

“We undertook some large corporate initiatives this fiscal year while continuing to manage our operations through the pandemic,” said Hughes in a news release.

The NSLC also noted licensee sales have started returning to more normal levels. Sales to licensees were up 45.1 per cent as COVID19 restrictions were lifted, the NSLC reported.

Sales to private wine and specialty stores were up 26.7 per cent, and sales to agency stores were down 7.3 per cent after the corporation said it experienced unusually high sales during the peak of pandemic measures.