ESTEVAN — The Southern Plains Co-op celebrated what was another record-setting year during the annual general meeting on May 30.
Audited financial statements for the fiscal year ending on Jan. 31 showed the co-op had nearly $111.29 million in sales last year, which was the best year ever and a substantial increase from the old record of $86.09 million set in 2021-22.
Board president Scott Keinlen said the increase in sales is largely due to the sale of crop inputs – fertilizer, chemical and supplies – at the new agro centre located on the Estevan truck bypass.
"The year 2022 saw the return of pre-pandemic norms," said Keinlen. "Fuel sales held steady while our fuel litres did increase marginally. Fuel inflation did increase our sales dollars."
The convenience stores had a good year, Keinlen said, and the new liquor store in Carlyle - located at the site of the convenience store in the town – has proven to be a great addition to the fleet of retail services, thanks to strong sales since opening in May 2022.
General manager Brian Enns noted the co-op should surpass the $2 billion mark in lifetime sales in the next two years.
"I often wonder if the founding members of this co-op would have dreamt that their initiative in 1946 would have realized this kind of success, both in longevity and growth," said Enns.
The cost of sales was nearly $96.63 million, leaving the co-op with a gross margin of $14.66 million.
Operating and administrative expenses were $15.4 million and when coupled with $282,799 in net interest, the co-op had a $457,790 loss from operations.
The Federated Co-op Ltd. loyalty program brought in $1.68 million in revenues, and patronage refunds were $2.83 million.
Final net savings were more than $3.98 million.
The co-op will have a $1.87 million patronage allocation to members. It also invested $161,000 into the communities it serves through donations and member engagement activities.
Keinlen noted the co-op currently has 215 staff members, a number that continues to grow, but it also has approximately 20 job vacancies.
Enns said 2022 was a historical year for the co-op, not just because of the records that were set, but due to the opening of the liquor store in Carlyle and the agro centre in Estevan.
"This first-in-class facility was built at a time when agriculture is and continues to be a large economic driver in our trading area. This is an exciting venture for the retail, and a facility our members and customers can be very proud of, and has the potential to be a major player of ours."
The past year also saw the installation of electronic shelving at all three food store locations that they hope to expand to liquor stores and convenience stores in the near future. Enns believes they give a clean and professional image for retail.
Over the past five years, the co-op has invested nearly $60 million in its different communities. Keinlen said the co-op is on track to begin construction on a new food store in Carlyle, with the groundwork for the project set to begin this summer. Enns added the current building and equipment have reached their end-of-life expectancy, and members in Carlyle have been waiting for the new store, which will encompass nearly 20,000 square feet.
"We hope to start construction in July or August of this year and open in April of 2024. This is another major undertaking, but it's one of the last replacement buildings that is required for our organization," said Enns.
A few dozen people attended the meeting at the Royal Canadian Legion's Estevan branch. A question period at the meeting allowed members to ask about various issues. One of them was regarding the renovation earlier this year that saw a change in location for many products.
Enns noted they wanted to expand their bakery, so they removed one aisle from the store and had to move some things around.
The co-op also had its election of board members. Lynn Hewitt and Linda Thauberger-Smith were re-elected to another term. Richard Ruetz decided to not seek another term after nine years of service and will be replaced by Marcia Greenwood.
Keinlen, Frances Boutin and David Murray will have their terms expire next year, and Connie Hagel, Rhonda Huish and James Lainton's terms wrap up in 2025.
