The Prairie Sky Co-operative Association posted a strong year with sales of $73.5 million, with just under $3.9 million in cash returned to members.
Details of their past year were shared with members and staff at the Co-op’s annual meeting, held Wednesday evening at McKenna Hall, including the details of their finances from the various departments, and the acclamation of three directors to the board.
“Through your support, Prairie Sky Co-op has become a pillar of the community. Our success helps us give back to the community. We often focus on the financial support that we provide to charitable and non-profit organizations, but is important to also recognize the economic support that the Co-op provides to the community,” said general manager Don Kraft in his report.
About $2 million will be returned to members with equity cheques in June, with the payments set at 4.5 per cent from food sales, five per cent from pharmacy, 4.5 per cent from petroleum sales, and 1.5 per cent from both the Home Centre and fashions.
The Co-op’s assets have grown in the last decade from $13.4 million to $31.5 million, and since being formed in 1929, the Co-op has paid back a total of $39 million in cash, with $23 million of that just in the last 10 years.
Breaking down the financial results by department, sales overall totalled $73.5 million, which is a 19 per cent decrease over 2014, or $17 million, due mainly to the downturn caused by lower oil prices.
The food division had sales over $20.6 million, which is up by three per cent from last year, including a 10-per-cent increase in produce sales, a nine-per-cent increase in the bakery department, and a four-per-cent increase in the meat department. Deli sales were down by three per cent, while grocery sales and pharmacy were up by one per cent.
In general merchandise sales, there was a total of $4.8 million, including $3.4 million from the Home Centre, a decrease of $33,000 from last year, while Expressions went up 29 per cent to $699,000, and Outdoor Adventure went up by 12 per cent to $767,000, making for an overall increase of $204,000.
In the petroleum division, fuel sales totalled $37.2 million with 47 million litres sold. In terms of dollars, this was a decrease of $17.2 million or 32 per cent, but in terms of litres, it was a drop of 5.9 million litres or 11.2 per cent, due mainly to the decrease in the price of oil.
Non-fuel sales in the petroleum division was up 6.5 per cent to just under $5 million. Sud City sales increased 47 per cent or $723,000 from last year, but the other convenience stores had decreases due to the slowdown in the economy. This was the first full year of operation since the renovations at Sud City.
In Beaubier, non-fuel sales increased to $1.6 million, a 28 per cent growth or an increase of $352,000. The Beaubier store has been selling bulk feed and more agro products, which added $226,000 in sales.
Fuel sales in Beaubier totalled $4.1 million from 5.1 million litres, which is a 24 per cent drop in dollar value but only a drop of two per cent in litres.
The gross margin for Prairie Sky increased one per cent or by $122,000 to $11.5 million. Other than the petroleum division, all other divisions saw an increase in margin dollars. The food division had an increase of 1.5 per cent or $122,000, general merchandise increased by $36,000 and Beaubier saw margin dollars increase by $127,000 or 26 per cent.
The Co-op’s operating expenses increased by just over $1 million to $11.6 million. Of this increase, $417,000 was due to depreciation. Staff costs comprise 61.8 per cent of expenses, followed by standby costs of 22.8 per cent, and other costs are 15.4 per cent, including advertising, communications, vehicle costs, supplies and the annual meeting.
Members were also informed that 87 per cent of the Co-op’s total assets are owned free of debt, which is an increase of two per cent from 2014.
