NLC today released its financial and operational results for the third quarter of fiscal year 2025-26, ended January 3, 2026. All information is unaudited.
NLC net earnings for the quarter totaled $57.4 million, a decrease of $3.8 million, or 6.2%, compared with Q3 of fiscal year 2024-25. Sales were strong, particularly in cannabis, but given lower gross margins on cannabis sales when compared to beverage alcohol, the overall impact on net earnings is negligible. The decrease in earnings is due to higher operating and administrative expenses resulting from higher cannabis commissions paid out due to the increase in cannabis sales and payment of retroactive salary reclassification increases, combined with a decline in beer commission revenue. NLC paid $60.0 million to the Government of Newfoundland and Labrador in the quarter.
“Our third quarter results reflect solid top-line momentum, particularly in cannabis, alongside disciplined execution across our operations, even as expenses impacted net earnings,” said Bruce Keating, President and CEO of NLC. “Importantly, we delivered $60.0 million to the Provincial Government this quarter, underscoring our continued role as a strong and reliable contributor to the province’s fiscal health.”
Beverage Alcohol
Beverage alcohol sales for Q3 were $90.3 million, a decrease of 0.4% over the prior year. Wine decreased by 4.7%, spirits increased by 0.7%, and ready-to-drink (RTD) increased by 5.3%, while beer was consistent with the prior year. The decline was due in part to the removal of the HST holiday in 2025, which had been introduced in December 2024 as a temporary federal government measure.
Sales through NLC’s corporate Liquor Stores were lower than Q3 of the prior year by 1.6%, while agency outlets across the province experienced an increase of 2.3% compared with Q3 of the prior year. Sales through licensees were consistent with the prior year. In addition to direct sales, NLC earns commissions on the sale of beer through Brewers’ Agents. These commissions for the quarter totaled $16.4 million, lower than Q3 of fiscal 2025 by 9.6%.
NLC was pleased to open a new corporate Liquor Store in Churchill Square, expanding access and service to customers in the East End of St. John’s. The closure of NLC’s Blackmarsh Road and Lake Avenue locations align with long-term plans to evaluate opportunities and better serve customers in these areas. NLC now operates 27 corporate Liquor Stores across Newfoundland and Labrador.
NLC continued to support craft beverage alcohol producers in the province, with almost $1.5 million in financial support provided in Q3, and nearly $6.0 million for the year-to-date. NLC also continued to provide accelerated product listings, shelf management support, and other assistance to contribute to an important and vibrant craft sector. NLC’s support programs are complemented by excise duty relief mechanisms for craft producers administered by the federal government under the Excise Act.
Cannabis NL
Cannabis sales through licensed cannabis retailers (LCRs) including online sales totalled $27.9 million in Q3, an increase of 4.5% over Q3 of the prior year.
Whole flower remains the top cannabis category representing 35% of total sales, followed by pre-rolls at 19%, and concentrates at 17%. As of the end of Q3, there were 59 LCRs in Newfoundland and Labrador.
A Request for Proposals was awarded in Q3 for a Tier 1 LCR in Churchill Square, as well as Tier 4 LCRs in New-Wes-Valley, Bishop’s Falls, Pasadena, St. Albans, and Fogo Island.
Manufacturing
During Q3, NLC’s Manufacturing division (formerly Rock Spirits) produced 76,000 cases of spirits, an increase of 19% compared to the previous year due to the timing of production. NLC Manufacturing also produced 5,000 cases of RTDs, wine, and beer, an increase of 67% due to new products and production contracts. Products manufactured by NLC’s Manufacturing division are exported to over 30 countries.
Regulatory Compliance and Enforcement
NLC’s Regulatory Services division continued to strengthen enforcement of NLC’s regulatory framework and enhance education efforts across the province during Q3.
To improve efficiency and transparency, the division implemented new tools to expedite and automate licensing activities. Public notices, applications, and license sanctions are now available on NLC’s corporate website, offering faster service for licensees and supporting greater public trust in NLC’s regulatory processes.
Education and training remained a priority throughout the fall, with the Regulatory Services team delivering in person and virtual sessions across the province to approximately 250 licensees. The sessions focused on preventing underage access and promoting responsible service, reinforcing NLC’s commitment to public safety.
In collaboration with NLC’s Corporate Social Responsibility team, new licensee training videos were launched to further promote responsible service practices. The videos are available online to all licensees to use as part of their regular training. NLC extends its appreciation to The Herbal Centre and The Newfoundland Embassy for their participation in this important initiative, helping to strengthen industry knowledge and promote safe, responsible service throughout the province.
Corporate Responsibility
During Q3, NLC launched its latest Social Responsibility awareness campaign, Know the Risks of Illegal Cannabis, which informs consumers about the overlooked dangers of illegal cannabis which is unregulated and not tested for harmful contaminants. By equipping consumers with this knowledge, NLC’s aim is to help reduce harm and contribute to a safer, more transparent, and more informed cannabis industry.
Leading up to the holiday season, NLC promoted responsible consumption and the prevention of impaired driving through important social responsibility programs and messaging. Through NLC’s Safe Ride program, event attendees are reminded to Enjoy Responsibly and Get Home Safely whenever alcohol is served. In November and December, NLC promoted this program at two events, one in St. John’s and another in Corner Brook. Attendees were offered a free or reduced-cost ride home at the end of the evening, with more than 80% taking advantage of the service to get home safely. To further raise awareness of the risks of impaired driving, NLC’s End Impaired Driving campaign was delivered throughout the holiday season on radio, television, digital billboards, and Metrobus routes.
NLC is proud to give back to communities throughout the province. Through NLC’s Community Donation’s program, donations were made to five recipients during the winter round: The Pottle Centre, Nain Transitional House Inc, The Kidney Foundation of Canada - Atlantic Branch, Burin Area Food Pantry and Easter Seals Newfoundland and Labrador.
From December 3-14, NLC proudly supported the Community Food Sharing Association for the 12 Days of Giving Campaign. Through the generosity of customers, supplier partners and NLC team members, over $150,000 was raised to support those experiencing food insecurity in the province. NLC team members also had the opportunity to volunteer with the Community Food Sharing Association to pack food hampers for individuals and families in need.
In December, the Government of Newfoundland and Labrador and NLC announced that remaining inventory of U.S. produced products would be returned to NLC shelves with the net profit going to support the Community Food Sharing association. An initial amount of $500,000 was donated in December 2025, with the total donation amount estimated to be $1 million.
Newfoundland and Labrador Liquor Corporation (NLC) Quarterly and Year-to-Date Results
About NLC
NLC is a Crown Corporation of the Government of Newfoundland and Labrador with responsibility through the Liquor Corporation Act, the Liquor Control Act, and the Cannabis Control Act for the importation, sale, distribution and management of beverage alcohol and cannabis.
NLC is one of the province’s largest retailers, offering over 4,000 products annually from more than 20 countries. Its extensive retail distribution network includes 27 corporate Liquor Stores, over 140 agency stores, more than 550 Brewer’s Agent outlets, and approximately 1,300 licensed establishments including restaurants, lounges and other licensees. NLC also provides special order services.
In addition to alcohol, NLC regulates and distributes to 61 licensed cannabis retailers and operates a secure online platform for legal cannabis purchases at shopcannabisnl.co
NLC runs a 77,000-square-foot distribution centre as well as a manufacturing facility which specializes in blending, bottling, and canning, with products exported to over 30 countries.
All profits from NLC are returned to the Government of Newfoundland and Labrador to be reinvested in the province by funding key public services. Through every product, partnership, and service, NLC is committed to earning public trust and delivering lasting value to Newfoundland and Labrador.