Even with a five-week labour disruption, the Moose Jaw Co-operative Association posted the highest percentage of net earnings in 10 years.
The Co-op showed $7.88 million net earnings — nine per cent of sales.
Members share in nearly $2.6 million cash patronage dividends, an increase of $600,000 from 2017.
“This year was not without its challenges,” commented President Marc Girard in the board of director’s report. “The Moose Jaw Co-op was not only able to weather storms but also continue to grow.”
Sales increased 1.6 per cent to $87.5 million for the year ended January 31. Sales declines of five per cent in the marketplace operation were offset by a 10 per cent increase at the Agro Centre. Gas bar sales were about the same.
Girard said the Co-op negotiated an acceptable labour contract.
The patronage dividend increase was made partly possible by a $2.1 million boost in patronage refunds from wholesaler Federated Co-ops.
The $15.6 million acquisition of Prairie Plains Agro, an independent crop input retailer, was negotiated last year with completion in 2019.
“This acquisition will go far to diversifying the Co-op’s product lines, so we are as not dependent on fuel sales as well as giving the Co-op a better presence in the large agricultural community we serve.”
General Manager Goeff Anderson said the Co-op input acquisition better diversifies the operation. “We don’t want to put all our eggs in one basket.”
Patronage dividends pay eight per cent (9.3 cents a litre) on petroleum, seven per cent on food and pharmacy, 12 per cent on oil and grease, and five per cent on non-food purchases.
Anderson, who started in the GM position in February, commended 28 years of local leadership in ensuring long term sustainability by his predecessor Gerry Onyskevitch, who retired.
“He took us through hard times in the ’80s when interest rates were 18 per cent. We not only survived we thrived.”
Due to retirements, the Co-op hired a number of new managers: Devin Rucks from Shaunavon, food manager; Rod Schuett from Southern Plains Co-op, meat manager; Tim Wonsiak, grocery manager; Ron Gorham, petroleum manager; Christy Schuett, ag centre manager; and Maria Allen from Central Butte, acting grocery and produce.
Brian Tittlemore was named crop protection manager. Michaela Turner has been hired as marketing and communications manager.
During the year, the Moose Jaw Co-op supported many community groups including the hospital foundation, Wakamow, Central Collegiate legacy fund, early childhood education, and awarded six $1,000 scholarships among the supports.
Anderson said a survey of employees will be taken this year to improve engagement and development.
“Without your support,” he told the members and employees at the annual meeting, “we wouldn’t be here tonight.”
The first quarter of 2019 isn’t over but “we’re ahead of budget. I have fantastic staff, fantastic board, fantastic support.”
Three directors re-elected by acclamation were Cam Howe, Joyce Rissling and Glenn Steinhauer.
Ron Walter can be reached at [email protected]
