
Cannabis sales through licensed retailers in Newfoundland and Labrador totalled $18.6 million in Q4 2023, up 22.3% over Q4 of the prior year.
Newfoundland and Labrador Liquor Corporation (NLC) recently released its fourth quarter and fiscal year 2023 performance ending April 1, 2023.
NLC reported net earnings for Q4 of $39.9 million, an increase of $5.4 million, or 15.8%, compared with Q4 of fiscal year 2022. Net earnings for the fiscal year ending April 1, 2023 totalled $201.2 million, an increase of $0.4 million or 0.2% from the prior year.
The dividend paid by NLC to the provincial government for the fiscal year was $208.0 million, $2.0 million lower than the same period one year ago. The company says the difference is due to many factors, namely the new collective agreement and an increase in commissions to support licensed cannabis retailers, as well as increased freight and security costs during the year.
For fiscal year 2023, alcohol and cannabis sales totalled $349.3 million compared to $318.9 million for the prior year, which in part reflected a change in reporting of cannabis sales.
Cannabis Sales
Cannabis sales through licensed retailers totalled $18.6 million in Q4. Total cannabis sales including online sales were $18.7 million.
Cannabis sales for fiscal year 2023 increased by 15.8% over the prior year to $70.7 million.
NLC also incurred an increase of 44.1% in cannabis operating and administrative expenses through the fiscal year, primarily due to the increase in commissions to retailers.
Increased Inspections
NLC conducted 1,484 inspections on liquor establishments and cannabis retailers in Q4, a 42% increase over the number of inspections conducted during the same period in 2022. This increase is primarily due to the pandemic challenges and establishment closures experienced in Q4 of 2022.
During the fiscal year 2023, NLC conducted 4,468 inspections on liquor establishments and cannabis retailers, up slightly over the prior year by 1%.
NLC worked with its partners in local law enforcement and Canada Post to investigate 18 files resulting in seizures of 409 kg of illicit cannabis products with a market value of $4.0 million. Since legalization in October 2018, NLC’s Regulatory Compliance and Enforcement team has seized approximately $10.0 million in illegal cannabis products.