NLC today released its financial and operational results for the fourth quarter of fiscal year 2025-26, ended April 4, 2026. All information is unaudited.
NLC reported net earnings for the quarter of $39.7 million, a decrease of $1.8 million, or 4.4%, compared with Q4 of fiscal year 2025. Net earnings for fiscal year 2026 total $199.6 million, a decrease of $11.1 million or 5.3% from the prior year. The decrease is attributable to continued declines in beer commission revenue, combined with higher operating and administrative expenses, including charitable contributions associated with U.S. product sales totalling up to $1 million - of which $500,000 was paid during the period, and a provision recorded for the remaining potential contribution - as well as retroactive salary reclassification increases and higher cannabis commissions resulting from increased cannabis sales.
NLC paid $37.5 million to the Government of Newfoundland and Labrador in the quarter, bringing the dividend remitted in fiscal year 2026 to $202 million which was reduced during Q4 from the planned dividend of $206 million given net earnings results for the year. This represents a decrease of 26.5% from Q4 of the prior year during which a special dividend of $10 million was paid.
“NLC’s results this year reflect both the realities of a changing marketplace and the strength and resilience of our organization,” said Bruce Keating, NLC’s President and CEO. “In addition to achieving record total sales and returning more than $200 million to government for the fifth consecutive year, we advanced important priorities across the business, including new store development, retail cannabis expansion, regulatory effectiveness, customer experience, social responsibility initiatives, and the launch of a single unifying brand and corporate visual identity for NLC. We remain committed to earning trust in all that we do and balancing strong financial performance with our broader public mandate.”
Beverage Alcohol
Beverage alcohol sales for Q4 were $59.5 million, an increase of 4% over the prior year. Compared with Q4 of 2025, spirits increased by 5.8%, wine increased by 3.5%, and ready-to-drink (RTDs) increased by 7.7%. Beer declined 2.6% from the prior year.
For the fiscal year, beverage alcohol sales overall were up 0.4% over fiscal year 2025 with an increase in most product categories. Spirits increased 0.9%, RTDs increased 3.7% and beer increased 0.5% over prior year, while wine decreased 2.1% from fiscal 2025.
Sales through NLC’s corporate Liquor Stores were lower than Q4 of the prior year by 1.4%, while Agency Stores across the province experienced an increase of 17.1%. Licensee sales increased 9.8% compared with Q4 of the prior year. Sales through NLC’s corporate Liquor Stores decreased 1.7% for fiscal year 2026 vs. 2025, while Agency Stores saw an increase of 4.6%, and licensee sales increased 1.4% from prior year.
In addition to direct sales, NLC earns commissions on the sale of beer through Brewers’ Agents. These commissions for the quarter totalled $15.2 million, lower than Q4 2025 by 13.9%. For fiscal year 2026, commissions were down 10% compared to prior year, for a total of $63.2 million.
To better serve customers in the Placentia area, NLC released a Request for Proposal for the lease of a new retail space scheduled to open during Q2 of fiscal 2027, replacing the current location.
NLC supported local producers through its listing process and by promoting local products in its stores and digital channels. NLC also provided financial support to local alcohol producers and licensees which totalled $6.9 million in the fiscal year.
Cannabis NL
Q4 cannabis sales through licensed cannabis retailers (LCRs) totalled $28.9 million, an increase of 9.2% over Q4 of the prior year. Total retail cannabis sales in Q4 including online sales were slightly above $28.9 million.
Total cannabis sales through LCRs for fiscal year 2026 totalled $115.2 million, an increase of 12.4% from fiscal year 2025. Total retail cannabis sales for the year, including online sales were $115.5 million.
Whole flower remains the top cannabis category representing 43.2% of total sales, followed by pre-rolls at 17.5%, and vape products at 14.1%.
At the end of fiscal 2026, there were 62 LCRs across Newfoundland and Labrador with three LCRs opening during Q4 in Pasadena, St. Albans, and Wesleyville.
NLC continues to support local cannabis producers in the province through its product listing process and continues to work with local producers to grow the industry. NLC also supports local cannabis producers with premiums for product sold in the province. The total support provided to local cannabis producers was $1.9 million.
Manufacturing
During Q4, NLC’s Manufacturing division produced 75,000 cases of spirits, a 16% decrease compared to the previous year due to timing of production. NLC Manufacturing also produced 6,000 cases of RTDs, wine, and beer, an increase of 143% due to new products and production contracts.
For the 2026 fiscal year, NLC’s Manufacturing division produced 267,000 cases of spirits, a 2% decrease compared to the previous year. NLC Manufacturing also produced 26,000 cases of RTDs, wine, and beer during the fiscal year, an increase of 101% due to new products and production contracts. Over 80% of cases were exported outside of Newfoundland and Labrador in fiscal 2026, with products exported to over 30 countries.
Regulatory Services
Public safety and protecting minors remain a key priority for NLC. Throughout fiscal 2026, NLC continued to collaborate closely with law enforcement partners to monitor and address illegal cannabis activity. In Q4, NLC’s Compliance and Enforcement team, working with UPS, intercepted illicit cannabis products destined for Newfoundland and Labrador, valued at more than $40,000.
NLC’s ongoing commitment to responsible retailing also plays a key role in supporting safer communities. Through NLC’s Check 25 program, corporate Liquor Store teams and Agency Stores are required to request identification from anyone who appears 25 or younger to help ensure beverage alcohol is sold only to those of legal age. In fiscal 2026, corporate Liquor Store staff challenged 436,000 transactions, an increase of 53,000 challenges from the previous fiscal. Check 25 training was also provided to all licensees across the province.
NLC expects the same commitment to responsible service from licensees through compliance with applicable legislation and regulatory requirements. During Q4, 14 locations received suspensions, however, violations were down 50% from the prior year, reflecting the impact of enhanced licensee education, including expanded in person training and improved online resources.
NLC conducted 1,007 inspections on liquor establishments and LCRs in Q4, a 10% increase compared to the same period in fiscal 2025. Over fiscal 2026, NLC completed 3,140 inspections, a 3% decrease from the prior year due to changes in departmental staffing levels. Despite this, NLC maintained strong engagement with the licensee community and continued to prioritize compliance oversight.
Compelling Workplace
NLC is committed to fostering a compelling workplace where employees feel valued, respected, and supported. Throughout Q4, NLC developed and carried out initiatives focused on strengthening inclusion, diversity, equity, and accessibility across the organization.
To recognize Black History Month, NLC hosted a virtual learning session presented by Laurabel Mba, an award-winning equity, diversity, and anti-racism consultant and community leader. The session, Black History 101, explored how Black history, experiences, and contributions intersect with the alcohol and cannabis industries.
In honour of International Women’s Day, NLC launched a new initiative, EMBRACE (Engaging Mentorship to Build Resilience, Advance Confidence, and Empower) to help foster meaningful connections, and support the growth and development of women across all levels of the organization. Through EMBRACE, NLC also organized a collection of feminine hygiene products to help address period poverty, donating the items to women’s shelters across the province.
Corporate Responsibility
NLC remains committed to incorporating Corporate Social Responsibility into its operational practices, supporting positive social, environmental, and community outcomes across the province.
During Q4, NLC continued to deliver social responsibility campaigns and messaging designed to encourage safer behaviours and support public safety across the province. NLC partnered with the Montana’s Brier in February to promote its Safe Ride program. Attendees were reminded to Enjoy Responsibly, and Get Home Safely, at the end of each game. NLC team members also provided taxi vouchers and water to participants at the Brier Patch on select nights, providing greater access to a safe ride home, and promoting moderation.
NLC also continued to demonstrate its commitment to supporting communities across the province through ongoing community investment, partnerships, and charitable initiatives. During Q4, NLC launched its Dollars for Doers program, which aims to strengthen NLC’s commitment to giving back while contributing to a compelling workplace by recognizing employees who go above and beyond in their communities.
Through NLC’s Community Donations program, five organizations across the province received funding during Q4: The O'Brien Farm Foundation, ElevateHER Mental Health Services Canada, Helping Hands Family Aid, The Loft – CYN, and St. John Ambulance. During the fiscal, $20,000 was donated through the program to support communities where NLC employees live and work.
From March 25 - April 4, NLC held the Breakfast Bitz campaign in support of Kids Eat Smart Foundation Newfoundland and Labrador, which provides free, healthy breakfasts to school aged children every school day. Through supplier partner support, customer donations, and a corporate donation of $15,000 from NLC, the campaign raised over $103,000. NLC staff also collected food to distribute to Kids Eat Smart Breakfast Clubs. In fiscal 2026, over $458,000 has been raised through NLC’s Quarterly Corporate Giving campaigns.
Newfoundland and Labrador Liquor Corporation (NLC) Quarterly and Year-to-Date Results
About NLC
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 27 corporate Liquor Stores, over 140 agency stores, more than 550 Brewer’s Agent outlets, and approximately 1,300 licensed establishments including restaurants, lounges and other licensees. NLC also provides special order services.
In addition to alcohol, NLC regulates and distributes to 61 licensed cannabis retailers and operates a secure online platform for legal cannabis purchases at shopcannabisnl.co
NLC runs a 77,000-square-foot distribution centre as well as a manufacturing facility which specializes in blending, bottling, and canning, with products exported 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.