St. John’s, Newfoundland and Labrador, August 21, 2025 - NLC today released its financial and operational results for the first quarter of fiscal year 2025-26, ended July 5, 2025. All information is unaudited.

NLC reported net earnings for the quarter of $46.2 million, a decrease of $1.8 million, or 3.7%, compared with Q1 of fiscal year 2025. The decrease is due to beer commissions being down 12.4% compared to the prior year due to lower domestic beer sales in the province. NLC paid $46.5 million to the Government of Newfoundland and Labrador in the quarter, an increase of $2.5 million compared to $44.0 million in the first quarter of fiscal 2025.

“We are cautiously optimistic about the outlook for the year based on NLC’s Q1 results,” said Bruce Keating, NLC President and CEO. “We anticipated that market conditions could be more difficult following the end of the HST holiday in the previous quarter. However, with the exception of beer commissions related to sales of beer through Brewer’s Agent outlets, market conditions for beverage alcohol have been reasonably positive, cannabis market conditions have been strong, and the broader retail environment is encouraging as we look ahead.”

Beverage alcohol sales for Q1 were $75.0 million, which is an increase of 1.2% over the prior year. Most product categories were higher than Q1 of fiscal 2025. The ready-to-drink (RTD) category had the highest increase of 5.3%, beer increased by 3.0%, and spirits had an increase of 1.1% over prior year, whereas wine decreased by 2.1%.

Sales through NLC’s corporate Liquor Stores were lower than Q1 of the prior year by 0.9%, while Liquor Express outlets across the province experienced an increase of 5.1% compared with Q1 of the prior year. Sales through licensees were 2.6% higher than the prior year.

In addition to direct sales, NLC earns commissions on the sale of beer through Brewers’ Agents. These commissions for the quarter totalled $13.4 million, lower than Q1 2025 by 12.4%. Softer market conditions along with changes in consumer trends, including the continued popularity of the RTD category, are contributing factors.

As part of a continued provincial response to tariffs imposed by the U.S. Government, all U.S. produced beverage alcohol products have been returned from Liquor Express locations across the province and are being held by NLC until further notice. With the removal of U.S. products, consumers have been moving to alternative options from other countries particularly in the wine category. Wine products showing the largest growth come from Argentina, Australia, Chile, Canada, and Italy.

As a responsible retailer, distributer and regulator of beverage alcohol and cannabis, public safety continues to be a priority for NLC. During Q1, NLC launched a new independent Mystery Shopper program to ensure that our corporate Liquor Stores and Liquor Express locations are upholding the highest standards and compliance with regards to ID checking and customer service. Through NLC’s Check 25 program, NLC corporate Liquor Store employees are trained to ID anyone who appears 25 years of age or younger. During Q1, NLC corporate Liquor Store staff checked for ID as per the Check 25 policy 106,788 times, and refused sales to minors 989 times.

Cannabis sales through licensed cannabis retailers (LCRs) totalled $29.9 million in Q1, an increase of 23.5% over Q1 of the prior year. Total retail cannabis sales in Q1 including online sales were $30.0 million. This performance is driven in part by new store openings since Q1 of last year, newer stores strengthening their retail offering and gaining traction, and stronger-than-expected growth in trending product categories, such as infused pre-rolls and vapes.

Whole flower remains the top cannabis category representing 35% of total sales, followed by pre-rolls at 21%, and vape products at 16%. As of the end of Q1 there were 59 LCRs in Newfoundland and Labrador.

Rock Spirits produced 51,000 cases of spirits, a decrease of 26% mainly due to timing of production. Rock Spirits also produced 7,000 cases of RTDs, wine, and beer, an increase of 49% mainly due to new SKUs and production contracts.

Rock Spirits continued to expand its customer base in Q1, signing a two-year contract with local producer, Frozen in Time Ltd., to produce wine-based RTD products. Rock Spirits also expanded its partnership with Iceberg Vodka with the production of Iceberg RTDs. Rock Spirits will continue to seek out local and international partnership opportunities.

Regulatory Services continued to support NLC’s commitment to public trust, operational excellence, and social responsibility, by ensuring the safe, responsible, and equitable access to alcohol and cannabis across the province. During Q1, a new inspector was hired and assigned to the Clarenville region to expand inspection coverage and public safety within the province.

NLCs Regulatory Services department collaborated with Special Event applicants on concerts and festivals leading up to a busy summer season. This included reviewing all-ages events where beverage alcohol was being served, ensuring that risk mitigation measures were in place to protect all attendees.

NLC continued to place Corporate Social Responsibility at the forefront of everything it does. During Q1, NLC focused on expanding efforts towards social responsibility, community giving, and a compelling workplace.

In May, NLC partnered with the East Coast Music Awards (ECMAs) to bring attention to important social responsibility messaging including NLC’s End Impaired Driving, and Mindful Moderation campaigns. Rock Spirits also partnered with the ECMAs to promote local products including NL Screech.

From April 10- 19, NLC held a Breakfast Blitz campaign in support of Kids Eat Smart Foundation NL. Through the support of NLC customers, staff, and supplier partners along with a corporate donation from NLC of $15,000, over $91,000 was raised to help provide school-age children in Newfoundland and Labrador with access to free healthy breakfasts. NLC also provided funding to five charities or non-profits located across the province through its Community Donations program. Recipients include the Parkinson Society of NL, Candlelighters NL, Harry’s Harbour Development Association, Mi’kmaq Cultural Foundation, and the Central Northeast Healthcare Foundation.

NLC continues to strive to provide an environment where employees and customers feel seen, heard, and are free to be their true selves. At the beginning of June, NLC recognized Pride Month by raising the Progress Pride flag at head office. NLC also continued its commitment to Quadrangle NL, providing $5,000 towards its essential community counselling line for 2SLGBTQIA+ community members, which is held in partnership with the Jacob Puddister Memorial Foundation.

In alignment with its commitment to a compelling workplace, NLC launched a new Talent Development program designed to align individual work with strategic outcomes, while also recognizing the contributions and opportunities for employees at all levels. During Q1, NLC also made a greater investment towards employee health, safety, and well-being. NLC recognized Safety and Health Week and Mental Health Week by planning educational activities for employees and recognizing staff Safety and Health Champions who demonstrated a strong commitment to the health, safety and well-being of employees and customers. A new Musculoskeletal Injury Prevention program was also implemented to help address and prevent soft tissue injuries within the workplace – an area that contributes to about 70% of all claims involving lost time from work for all employers in the province.

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 28 corporate Liquor Stores, over 140 Liquor Express locations, more than 550 Brewer’s Agent outlets, and approximately 1,300 licensed establishments including restaurants, lounges and other licensees. NLC also provides private order services.

In addition to alcohol, NLC regulates and distributes to 59 licensed cannabis retailers and operates a secure online platform for legal cannabis purchases at shopcannabisnl.com

NLC runs a 77,000-square-foot distribution centre as well as a manufacturing facility, Rock Spirits, which specializes in blending, bottling, and canning. In operation for over 70 years, Rock Spirits exports 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.