[FREDERICTON, NB] – NB Liquor achieved the largest net income in its history and met the provincial government’s expense reduction target while maintaining customer service in fiscal 2011-12, according to unaudited annual results released today.
"Meeting the expense reduction requested by the provincial government and delivering an additional $4.7 million of profit – the most NB Liquor has ever returned to the province – while maintaining an excellent customer experience is something for which corporation staff should be commended,” says Daniel Allain, president and chief executive officer, NB Liquor.
The $4.7 million improvement, a 2.9 per cent increase, raised net income to $164.1 million due to the increase in sales of the higher-margin categories (wine and spirits) and prudent expense management.
Total sales as of March 31, 2012, were $395.1 million, up $1 million (0.3 per cent) from the fiscal year ended March 31, 2011.
A $500,000-reduction in operating expenses meant that the corporation met the 2011-12 expense reduction target set by the provincial government. NB Liquor has reduced spending by two per cent during the past two fiscal years.
Key product sales trends:
● wine led sales growth, up $3.5 million (plus 5.3 per cent);
● spirit sales increased $700,000 (plus 0.8 per cent);
● beer sales were marginally down, off $900,000 (minus 0.4 per cent); and
● other beverages were down $2.3 million (down 10.3 per cent).
"The corporation delivered better results than 2010-11 despite the numerous challenges in the year, including eight per cent fewer customer visits to corporate stores," Allain says. "I am proud of what we have achieved despite these difficult economic times."
The fourth-quarter board of directors and chief executive officer expenses are on the NB Liquor website.
NB Liquor is a provincial Crown corporation responsible for the purchase, importation, distribution and retail sale of all alcoholic beverages in the province. It has 47 corporate outlets and 73 private agency store outlets.
