LCBO sales top $4.7 billion in 2011-12
TORONTO, May 16, 2012 /CNW/ - LCBO released its 2011-12 financial results today reporting net sales of $4.710 billion, up $218 million or (4.9 per cent) over 2010-11. It transferred an all-time high $1.63 billion dividend, not including taxes, to the Ontario government, $80 million (5.2 per cent) more than in 2010-11. Net income rose $98 million to $1.658 billion, up 6.3 per cent.
It was LCBO's 17th straight year of record sales and 18th consecutive record dividend. These financials have yet to be audited. LCBO revenues help pay for provincial government priorities, including health care, education, infrastructure and other important public services.
"Net sales growth resulted from consumers trading up to premium products, incremental sales from new stores, an appealing product mix and effective marketing," said LCBO President & CEO Bob Peter. "Good expense control and inventory management also allowed us to capitalize on increased dollar sales and exceed last year's dividend in a challenging economy."
LCBO's 4.9 per cent sales growth in 2011-12 outpaced the Canadian and Ontario retail sectors. Seasonally adjusted retail sales increased 4.5 per cent year-over-year for all of Canada while Ontario retail sales grew by 3.4 per cent.
Ontario VQA table wines rose by nine per cent, outpacing LCBO wine sales as a whole which increased by 5.7 per cent. Ontario craft beers led all product segments with almost 45 per cent growth.
"The sales performance of VQA wines and Ontario craft beers are all the more impressive given they are achieving growth on top of previous strong sales growth," noted Peter. "We continue to see very positive results from the steps we have taken to promote VQA wines and Ontario craft beers, including through our goLOCAL marketing."
Vintages, LCBO's fine wine and premium spirits business unit, saw sales rise 10.2 per cent or $39 million over the previous year to $425 million.
Key product sales trends in 2011-12:
- Spirits sales rose 4.3 per cent to $1.92 billion (imported spirits rose 6.6 per cent)
- Wine sales rose 5.7 per cent to $1.66 billion (whites up 6.6 per cent, reds up 5.2 per cent)
- Beer sales rose 3.8 per cent, totalling $888 million.
- LCBO gift card sales were up 19 per cent and sales of gift packs rose 14 per cent.
In 2011-12, LCBO opened 13 new stores and carried out major upgrades on two outlets. These retail improvements contributed some $14.5 million in additional sales.
During 2011-12, LCBO retail staff challenged 6.3 million people who appeared underage, intoxicated or were suspected of purchasing for a minor or an intoxicated person. More than 290,000 were refused service. Eighty-four per cent of refusals were for reasons of age.
LCBO's Deflate the Elephant social responsibility campaign continued to evolve with the launch of the "Home Bartending Challenge" at www.deflatetheelephant.com, a Facebook Pledge photo contest and TV commercials during the summer and holiday seasons encouraging hosts to help prevent their guests from drinking and driving. It was LCBO's 13th annual social responsibility campaign.
Customer donations at LCBO checkouts and employee fundraising raised more than $6.2 million for worthy causes in calendar 2011.For further information:
Chris Layton, LCBO Media Relations Co-ordinator
Tel. 416 864-6772; Cell: 416 587-3729; Fax. 416 864-6850; E-mail: firstname.lastname@example.org
Julie Rosenberg, Sr. Communications Consultant, LCBO Corporate Communications
Tel. 416 864-6875; Cell. 647 339-5428; E-mail: email@example.com