LC today released its financial and operational results for the second quarter of fiscal year 2025-26, ended October 4, 2025. All information is unaudited.

NLC reported net earnings for the quarter of $56.3 million, a decrease of $3.7 million, or 6.2%, compared with Q2 of fiscal year 2024-25. The decrease is due to reduced gross profit on beverage alcohol sales, partly due to the removal of higher-margin U.S. products, combined with a decline in beer commission revenue. NLC paid $58.0 million to the Government of Newfoundland and Labrador in the quarter, a decrease of $2.0 million compared to $60.0 million in the second quarter of fiscal 2025.

"We remain cautiously optimistic about the outlook for the balance of the year,” said Bruce Keating, NLC President and CEO. “After many consecutive quarters of strong financial performance, this quarter’s beverage alcohol results reflect variability in the market and the ongoing effect of removing U.S. product. At the same time, cannabis is showing steady, positive momentum as we further shrink the illicit market. NLC continues to deliver strong performance across our entire organization, from Regulatory Services and corporate social responsibility to our Rock Spirits manufacturing operation. We remain dedicated to excellence in every area of our work and to earning the public’s trust each day.”

Beverage alcohol sales for Q2 were $84.2 million, a decrease of 1.5% over the prior year. Wine decreased by 2.8%, spirits decreased by 2.7% and ready-to-drink (RTD) decreased 0.6% from prior year, whereas beer increased by 0.8%.

Sales through NLC’s corporate Liquor Stores were lower than Q2 of the prior year by 2.5%, while Liquor Express outlets across the province experienced a decrease of 0.7% compared with Q2 of the prior year. Sales through licensees were 3.0% lower 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 $18.1 million, lower than Q2 2025 by 4.7%.

As part of ongoing efforts to meet customers where they are and improve access to products and services, NLC signed a lease to open a new corporate Liquor Store in Churchill Square in St. John’s, scheduled to open in Q3.

Cannabis sales through licensed cannabis retailers (LCRs) totaled $28.5 million in Q2, an increase of 10.6% over Q2 of the prior year. Total retail cannabis sales in Q2 including online sales were $28.6 million.

Whole flower remains the top cannabis category representing 32% of total sales, followed by pre-rolls at 21%, and vape products at 16%.

As part of its commitment to improve access to legal cannabis, an RFP was issued in Q2 to add a new tier 1 LCR in Churchill Square and several tier 4 LCRs in rural Newfoundland and Labrador. These LCRs are expected to open in Q3 and Q4 of fiscal 2025-26. At the end of Q2 there were 59 LCRs in Newfoundland and Labrador.

Rock Spirits produced 64,000 cases of spirits, an increase of 27% compared to prior year mainly due to timing of production. Rock Spirits also produced 10,000 cases of RTDs, wine, and beer, an increase of 203% mainly due to new products and production contracts.

During Q2, Rock Spirits continued to expand its RTD offerings, with the release of Shiver Spritz. Rock Spirits also partnered with the Canada Summer Games by donating a portion of sales from select Rock Spirits products to the Canada Games Legacy Fund. Over $10,800 was donated to this initiative, which will help ensure the sustainability of sport in Newfoundland and Labrador.

NLC’s Regulatory Services division is responsible for enforcing the corporation’s regulatory framework, including implementing continuous improvements that reflect the evolving needs of communities, industry partners, and government stakeholders. During Q2, key updates were made to the Liquor Control Act and Regulations to reflect societal expectations, as well as current business practices and operational efficiencies. Updates included a modern definition of alcoholic liquor (greater than 0.5%), increased minimum pricing for a standard serving on licensed premises, and consolidated license classes.

NLC’s Regulatory team also continues to work closely with LCRs in navigating legislation and increasing efforts around social responsibility. Regular compliance audits are carried out on LCRs to ensure public safety and compliance with the Cannabis Control Act and Regulations including a minor being present in a licensed cannabis premises, ID checking, and sale of cannabis to a minor. A compliance audit conducted in Q2 resulted in 15 LCRs failing to comply, as minors were able to purchase cannabis from their establishments. Non-compliant retailers were made aware of their violations and are subject to discipline. The results are an improvement from the previous year which resulted in 28 LCRs selling cannabis to a minor. This is a positive sign that can be attributed to increased efforts in communication, education around proper identification methods, and stronger policies. NLC is encouraged that these continued learnings for licensees will help further reinforce their commitment to social responsibility and public safety.

Throughout Q2, NLC continued to strengthen efforts toward making a positive impact on local communities, with employees playing a significant role in these contributions. Their combined efforts and dedication reinforced NLC’s focus on corporate social responsibility and helped expand the reach of its community investments.

NLC is committed to fostering a culture that inspires collaboration and cultivates diversity, inclusion, and belonging. During Q2, NLC sponsored and participated in the St. John’s Pride Parade, walking alongside colleagues, family, and friends in support of 2SLGBTQIA+ community members, while also providing financial support to pride initiatives across the province. NLC also recognized National Day for Truth and Reconciliation by listening and learning. Employees received Cultural Diversity Training through First Light NL and were also provided with educational opportunities and resources via the National Center for Truth and Reconciliation.

As a responsible retailer and regulator of alcohol, protecting communities and promoting responsible use is a top priority for NLC. Throughout the summer, the corporation partnered with major events including the NL Folk Festival, Churchill Park Music Festival, and the 2025 Canada Summer Games to share key social responsibility messaging. NLC showcased its Check 25 campaign, emphasizing the importance of keeping alcohol out of minors’ hands, alongside its End Impaired Driving and Mindful Moderation initiatives.

Community Giving continues to be a core part of NLC’s purpose. During Q2, employees donated funds through NLC’s payroll deductions program to support the Single Parent Association of Newfoundland and Labrador’s back-to-school program, while also helping to pack backpacks for families in need. Employees also donated funds to the Canadian Red Cross in support of wildfire relief efforts in the province. This donation was matched by NLC and supported further through in-store fundraising at the Bay Roberts and Carbonear corporate Liquor Stores.

Recipients of NLC’s Community Donations Program during Q2 included the Dr. Jack Hand Legacy Foundation, Kids Help Phone, Battle Harbour Assisted Living Corporation, Stephenville Crossing Recreation, and the Vera Perlin Society.

From August 22-31, NLC held the second Keeping Families Close Campaign in support of Ronald McDonald House Charities NL and the Red Shoe Crew Walk for Families. The campaign, which was NLC’s most successful campaign to date, raised $114,000 through customer donations, supplier partner support, and a corporate contribution from NLC of $15,000. Team members from across the organization also fundraised and participated in Red Shoe Crew Walks across 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.