LCBO transfers all-time high $1.7 billion dividend to Ontario government
17 Jun, 2013, 08:36 ET
TORONTO, June 17, 2013 /CNW/ - Operational efficiency and growth through store network improvements were key factors in LCBO's 2012-13 financial results, which reported net sales of $4.892 billion, up $182 million (3.9 per cent) from 2011-12. LCBO transferred an all-time high $1.7 billion dividend, not including taxes, to the Ontario government, $70 million (4.3 per cent) more than in 2011-12. Net income rose $53 million to $1.711 billion, up 3.2 per cent.
It was LCBO's18th straight year of record sales and 19th 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 is due in large part to the strategic expansion of our store network, including new stores and renovation of existing stores, as well as solid financial management," said LCBO President & CEO Bob Peter. "Despite a challenging retail economy, LCBO was able to deliver these results by managing expense, careful product and inventory control and executing store network improvements."
In 2012-13, LCBO opened 28 new stores (12 new, 16 relocations) and carried out major upgrades on two outlets. These retail improvements contributed an estimated $30.5 million in additional sales.
LCBO's 3.9 per cent sales growth in 2012-13 outpaced the Canadian and Ontario retail sectors. Seasonally adjusted retail sales increased 2.5 per cent year-over-year for all of Canada, while Ontario retail sales grew by 1.6 per cent in calendar 2012.
Ontario wine and craft beer have both experienced strong sales growth. Ontario wines rose by 5.4 per cent, while Ontario craft beers led all beer segments with 33 per cent growth.
VINTAGES, LCBO's fine wine and premium spirits business unit, saw sales rise 3.5 per cent or $15 million over the previous year to $434 million.
Key product sales trends in 2012-13 (excluding Private Ordering):
- Spirits sales rose 2.3 per cent to $1.97 billion (imported spirits rose 4.4 per cent)
- Wine sales rose 5.2 per cent to $1.75 billion (whites up 5.9 per cent, reds up 4.1 per cent)
- Beer sales rose 3.9 per cent, totalling $923 million
- LCBO gift card sales were up $10.8 million or 20.7 per cent from 2011-12, totalling $62.9 million.
During 2012-13, LCBO retail staff challenged 7.8 million people who appeared underage, intoxicated or were suspected of purchasing for a minor or an intoxicated person. More than 322,000 were refused service. Eighty-four per cent of refusals were for reasons of age.
Customer donations at LCBO checkouts and employee fundraising raised $6.6 million for worthy causes during 2012. This was a six per cent increase in fundraising over the 2011 total of $6.2 million.
For further information:
Heather MacGregor, LCBO Media Relations Co-ordinator
Tel: 416 864-6772; Cell: 416 587-3729
E-mail: [email protected]
Sally Ritchie, LCBO Senior Communications Consultant
Tel. 416 864-6875; Cell: 647 339-5428
E-mail: [email protected]
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