Neepawa-Gladstone Co-op posts record year in 2014

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Published on Thursday, April 30, 2015

By Kate Jackman-Atkinson

The Neepawa Banner

Last year was a good year for the Neepawa-Gladstone Co-op, which held its AGM on April 16. In what was the organization’s 86th year in business, the Co-op reached an all-time record, posting sales totalling $71.3 million and local savings, the profits generated before patronage payments from Federated Co-operatives Limited, of $1.1 million. General manager Brian Hedley noted that strong results were seen across divisions.

In his report, Hedley noted that the Co-op is very dependant upon the agricultural sector which means that they are also dependant upon the weather conditions.  Last year’s strong results were achieved despite a slow, late spring.

The Co-op has placed increased focus on managing accounts receivable to reduce the organization’s financial pressure and risk. To this end, Hedley said that they have made available several financing programs to help customers across their departments.

Many departments had improved margins over last year, but Hedley said that this wasn’t the case with all departments. He noted that their number one priority as a management group is Improved Department Operations.  This includes an operational analysis of all departments, which involves monthly, or even weekly, meetings to examine each department in detail and to determine concerns and corrective actions. Gross margin improvement, reduction of expenses and a tighter inventory management will go along with this initiative to improve profitability.

Last year saw a few new initiatives at the Co-op. Noteably, on March 6, the Co-op opened its new Neepawa food store, with a focus on “fresh”. Hedley said that sales at the store have exceeded their expectations.  Despite initial concerns about the location, Hedley said many shoppers have enjoyed the larger parking lot and highway convenience. 

The Gladstone grocery store also saw strong sales, well over budget. 

At the Neepawa Gas Bar, sales were over budget and Hedley said that the car wash continues to be very successful. Hedley said that interior upgrades will be completed this coming summer. One change in 2014 was the Top Tier certification of FCL’s Co-op branded gasoline, making it one of the highest rated gasolines.

Despite a slow start to the year and slightly lower sales, Hedley said that the Neepawa Home and Farm Centre achieved strong savings. Exterior upgrades are planned for the coming year.

In Gladstone, the Farm and Building Centre recorded sales close to budget and margins and expenses that were kept in line.

The Neepawa Agro, Gladstone Agro and custom applications departments had a strong year. This coming year will see the addition of the new granular fertilizer shed and high speed volumetric blending system as well as the additional opportunities created by the purchase of Eagle Agro’s retail business. Hedley said that they will now be able to custom apply with six high clearance sprayers, three granular fertilizer Terragators and Eagle Agro’s three spray planes.

The bulk department posted sales $2 million higher than the previous year and Hedley said that all trucks have been equipped with purple dye injectors, which allows them to travel with only clear product, improving efficiency. 

After allocating for reserves and taxes, the patronage allocation for Co-op members will be over $2.9 million. In 2014, 434 new memberships were purchased, up from 372 the previous year. 

While still early in the year, Hedley is encouraged by the Co-op’s sales to date in 2015.