Welcome to the Business Journal Archives
Search for articles below, or continue to the all new BusinessJournalDaily.com now.
Search
Pa. Liquor Control Board Reports Record Revenues
HARRISBURG, Pa. -- Revenue at fine wines and spirits stores in Pennsylvania reached $2.24 billion in fiscal 2014, a $67 million, or 3.2% increase compared to fiscal 2013, the state Liquor Control Board reported Wednesday. The board paid a record $526 million in liquor taxes, sales taxes and transfers to the general fund, a year-over-year increase of $13 million.
In addition to payments to the general fund, the agency also remitted $8.3 million in local taxes to Philadelphia and Allegheny counties, $25 million to the Pennsylvania State Police, $2.5 million to the Department of Drug and Alcohol Programs and $4.5 million in licensing fees to municipalities, the board reported. In total, agency payments to other state agencies and local governments exceeded $566 million, a $15 million increase over the previous year.
The annual transfer to the general fund of $80 million, usually paid in June, was made in March at the request of the governor's Budget Office, which also sets the amount of the transfer. The ongoing profitability from sales of liquor and cash flow generated from operations allowed the agency to fulfill this request. By the end of fiscal 2014, the board owed the general fund nothing. In February 2013, the board repaid a $110 million advance from the general fund, which had been outstanding since 1968.
The board reported net income of $123.7 million in fiscal 2014 versus $128.4 million reported last fiscal year. While it appears net income decreased, it actually did not, the board said. In fiscal 2013, the net income included an $8.9 million credit from the Office of Administration for overbilling the agency for medical benefits. Without the credit, the net income would have been $119.5 million.
Adjusted, 2014 net income exceeded 2013’s by $4.2 million, or 3.5 %. Gross margin decreased slightly to 31.11% from the 31.15% reported last year.
Retail wine sales stores showed the strongest growth -- a 3.7% increase -- driven by the chairman's selection program, which experienced a 5.6% increase in sales. Retail spirits sales also increased 3.7%, while overall licensee sales increased a more modest 0.7%.
Published by The Business Journal, Youngstown, Ohio.
CLICK HERE to subscribe to our twice-monthly print edition and to our free daily email headlines.