The Federated Co-op’s wholesale operations entered its 90th year with record first quarter earnings and sales.
“It was a fantastic first quarter for FCL with the highest results in 90 years,” Don Mathies, district Federated Co-op director from Herbert told the Moose Jaw Co-op annual meeting.
The record profit of $322 million came from sales of $2.1 billion.
In 2018, FCL earned $1.1 billion on sales of $10.8 billion and returned $789 million to the 180 Co-op retail operations in Western Canada.
Most of FCL’s profit is returned to the 180 independent Co-ops. The rest is invested in current assets, facilities and preparing for the future.
Local retail Co-ops pass on rebates to 1.9 million members and in community support.
Having a 90th birthday is “a great milestone we should all be very proud of.
“This accomplishment is not because of any individual but it is from the collective efforts of everyone over the last 90 years,” Mathies said.
Federated Co-ops in unity with retail co-ops “is constantly working at building a sustainable business model which balances economic, environmental and social responsibilities.
“We were created by our communities and are part of the fabric of our communities.”
By working together, Co-op members provide unequalled competitive advantages over competitors.
Mathies said members should realize refining margins from the Regina refinery won’t stay this high.
Low oil prices boosted refining profits last year.
“We are all aware of the amount of instability in the energy sector due to government regulations as well as movement to a low carbon clean fuels environment.”
Ron Walter can be reached at email@example.com