Despite the first annual sales decline in 26 years, the Pennsylvania Liquor Control Board on Wednesday reported record net income for the fiscal year that ended June 30.
Liquor sales were hit hard particularly in the early stages of the pandemic when state wine and spirits stores were closed due to covid-19 concerns. Sales totaled $2.56 billion in 2019-20, which is $110.9 million less than the previous year.
But net income for the year totaled a record $208.7 million.
The LCB attributed the increase in net income primarily to decreased operating expenses related to pensions and other post-employment benefits.
The 9.2% increase in net income over the prior fiscal year enabled the LCB to exceed its annual $185.1 million contribution to the state’s General Fund by $23.6 million. Contributions to the General Fund finance Pennsylvania schools, health and human services programs and law enforcement, among other public services.
Until the covid-19 public health crisis, the LCB had achieved sales growth each year since 1993-94. For eight months of fiscal year 2019-20, the state-operated Fine Wine and Good Spirits sales were on a record pace. But beginning in mid-March, retail stores temporarily closed and e-commerce operations were briefly suspended because of covid-19 mitigation efforts.
LCB spokesman Shawn M. Kelly said the way things looked earlier in the year he might not have been able to predict such a positive outcome.
“What we faced was unprecedented,” Kelly said. “I think initially there were some questions as to how the fiscal year would turn out.”
The LCB also authorized $2.2 million in grants in fiscal year 2019-20 in support of Pennsylvania’s beer and wine industries and awarded more than $800,000 in alcohol education grants during the year to reduce underage and dangerous drinking.
