Bad weather and low energy prices hit the Carrot River Co-op hard in 2016, but the co-operative kept its bottom line firm.
In the 2016 fiscal year, which ended Oct. 31, the co-op had net savings of almost $518,000, compared to around $490,000 in 2015.
“I would say right now I’m pleased with the direction we are going,” said Ward Kewley, the co-op’s general manager. “We managed to hold our own.”
In July, the Carrot River area saw massive flooding. In October, rain and snow made it hard to harvest. As a result, Kewley estimated they lost 500,000 litres of fuel sales.
Sales in 2016 were $14.7 million, compared to $15.5 million the last year. Yet the gross margin was $2.5 million in 2016, compared to $2.3 million in 2015.
Also affecting sales numbers was reduced fuel costs at the pump.
“We were still selling a litre of petroleum than less than the year before for a goodly portion of the year,” Kewley said. “We’ve seen that level out now and actually we’re seeing that price nudging up a little bit.”
Food sales were at $4.5 million, compared to $4.495 million the year before.
The co-op also opened a new store at 1013 Main St. in 2016. Kewley said that location is in the black and that the extra floor space has allowed them to change offerings in the main store across the street. It has also resulted in an increase in hardware sales.
“Looking forward, now we’re adding the liquor commodity,” Kewley said. “I think that’s also another way of seeing us diversify.”
That will also be sold at the 1013 Main location. The co-op is looking at May 15 to begin selling liquor.
Besides that, the general manager said there aren’t large changes planned for 2017.
“We’re looking to fine-tune what we’re doing and making sure that we’re doing it good.”
