NLC today released its financial and operational results for the third quarter of fiscal year 2025, ended January 4, 2025. All information is unaudited.

NLC reported net earnings for the quarter of $61.2 million, an increase of $3.1 million, or 5.2%, compared with Q3 of fiscal year 2024. The dividend paid by NLC to the Government of Newfoundland and Labrador totalled $55.0 million for the quarter, $1.5 million higher than Q3 of the prior year.

“We are very pleased with the strong results this quarter, with total sales and net earnings up over last year for both the quarter and year-to-date,” said Bruce Keating, NLC President and CEO. “More broadly, I’m delighted with our team’s ongoing drive to deliver an exceptional customer experience, support our privately owned retailers in cannabis and alcohol to be responsible participants in these regulated industries, and for the growing impact of our corporate social responsibility initiatives in reflecting the values of our 650 team members.”

Beverage Alcohol sales for Q3 were $90.7 million, up 3.0% vs the prior year. Compared with Q3 of 2024, RTD sales (ready-to-drink) increased 16.4%, wine increased 7.3%, spirits decreased 1.7%, and beer sales increased 1.9%.

Sales through NLC’s corporate Liquor Stores were up 5.4% compared to Q3 of the prior year, while Liquor Express outlets across the province were down 1.2%. Sales through licensees such as bars and restaurants were lower than the prior year by 0.6%.

In addition to direct sales, NLC earns commissions on the sale of beer through Brewers’ Agents. These commissions for the quarter totalled $18.2 million, higher than the third quarter of fiscal year 2024 by 4.9%.

NLC continued to support local business throughout Q3 by listing 63 beverage alcohol products from local producers. NLC also launched is Local Producer Handbook to help local alcohol producers work with the NLC to promote and sell their products.

Cannabis sales through licensed cannabis retailers (LCRs) totalled $26.7 million in Q3, an increase of 21.0% over Q3 of the prior year. Total retail cannabis sales in Q3, including online sales, were $26.8 million.

Cannabis NL listed 52 products through local cannabis producers during Q3. As well, Cannabis NL was pleased to welcome a new LCR in the town of Port Hope Simpson. As of the end of Q3 there were 56 LCRs in Newfoundland and Labrador compared to 55 at the beginning of this fiscal year.

Rock Spirits produced 64,000 cases of spirits and 3,000 cases of RTDs and beer during Q3 - a decrease of 27% in spirits, and a decrease of 14% in RTDs and beer over the same period the previous year. The decrease was driven primarily by a reduction in demand for the product of some of our co-packing partners, as well as by the timing of production.

NLC conducted 597 inspections on liquor establishments and LCRs in Q3, as it continues to work closely with the licensee community. NLC’s Regulatory Compliance and Enforcement team did not seize any illicit cannabis product during this period, which is an encouraging sign that customers are continually moving to the legal market.

Regular compliance audits are carried out on LCRs to ensure public safety and compliance with the Cannabis Control Act and Regulations including a minor being present in a licensed cannabis premises, ID checking, and sale of cannabis to a minor. Following a compliance audit carried out in Q2, LCRs found non-compliant with the Cannabis Control Act and Regulations were made aware of violations, which were subject to further investigation. Suspensions varying in length based on the frequency of sales were issued to all applicable licensees to be served in Q4.

To further educate licensees, the Regulatory Services’ team hosted multiple sessions for beverage alcohol and cannabis licensees across the province in October 2024. The sessions which were attended by over 300 representatives from local bars, restaurants, LCRs and other licensees, provided key knowledge and training to help ensure the safe, legal, and socially responsible retailing of alcohol and cannabis throughout the industry.

During Q3, NLC continued to place Corporate Social Responsibility (CSR) at the forefront of its operations.

NLC continues to prioritize its people, in creating a safe, supportive, and inclusive culture and enhancing NLC’s workplace and operations to be accessible for employees, customers and other stakeholders. During the quarter, NLC carried out discussions and plans regarding accessibility including posting its 2024–2026 Accessibility Plan online, which focuses on addressing prevention, identification and removal of barriers to improve accessibility.

NLC was proud to partner with the Newfoundland and Labrador Craft Beer Festival for its 12 Beers of Christmas event to promote important social responsibility messaging leading up to the holidays. NLC staff also provided water and taxi vouchers to participants to help them stay hydrated and ensure that they had a safe ride home at the end of the night.

In December 2024, NLC held its 12 Days of Giving Campaign, in support of the Community Food Sharing Association. This was the second consecutive year for the campaign which helped provide food hampers to thousands of people in need from across the province during the holiday season. Thanks to the generosity of NLC customers, supplier partners, and staff members, over $108,479 was raised, which included a $15,000 corporate match by NLC. Staff members from across the corporation also held a food collection towards the cause.

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 also ensures the delivery of programs that promote safe, responsible consumption.

NLC is one of the largest retailers in the province. Through 28 corporate retail locations, over 140 liquor express stores, more than 550 Brewer’s Agent outlets, and over 1,400 restaurants, lounges, and other licensees, along with private order services, NLC offers over 4,000 products per year to consumers and its retail partners from more than 20 countries. It also regulates and distributes to 56 licensed cannabis retailers across the province, and offers customers a secure, legal online environment for cannabis purchases via ShopCannabisNL.com. NLC operates a 77,000 square foot distribution centre, as well as a manufacturing operation, Rock Spirits. The facility, which runs world-class blending, bottling and canning operations, ships to more than 30 countries around the world and has been in operation for over 65 years.

NLC operates with the expectation that it will generate revenue for the Government of Newfoundland and Labrador, with 100% of its profits reinvested in the province to fund key public services. NLC aspires to build trust in everything it does - with customers, employees, retailers, commercial partners, and communities, along with Government, to ensure a stronger Newfoundland and Labrador.