FCL reports $7.9 billion in revenues, perseveres through 2020 challenges
December 17, 2020
Amidst the economic challenges brought to Western Canada by the COVID-19 pandemic and the global downturn in energy demands, Federated Co-operatives Limited (FCL) has persevered to support over 160 local Co-ops and their communities in 2020.
An extremely challenging energy market with significantly reduced fuel demand created one of the most difficult financial years in our co-operative’s recent history. Revenues of $7.9 billion were recorded for the financial year that ended Oct. 31, 2020, with earnings of $177 million. From these earnings, FCL returned $117.5 million to local Co-ops across Western Canada.
The value of FCL’s diversified business lines was evident, with strong results in the food, home and building and agriculture business lines. However, these were not nearly enough to offset substantial declines in the energy sector.
“I’m proud that FCL and our local Co-ops have confronted this year’s challenges head-on and we have continued to meet the needs of Western Canadians,” said FCL CEO Scott Banda. “Co-ops have shown new levels of co-operative spirit during the COVID-19 pandemic, tackling problems together while meaningfully contributing to local communities as demonstrated by our ongoing investment in the West.”
From the onset of the COVID-19 pandemic, the local Co-ops supported by FCL have provided essential goods to their communities and in many cases have served as a lifeline to residents in many communities. Co-ops began adapting quickly by finding creative solutions to meet their communities’ unique needs.
Co-ops also banded together to deliver Co-op Helps, a campaign that allowed Co-op customers and members to nominate people who needed a helping hand in dealing with the pandemic or those who were making a difference in their communities’ response to the pandemic. In turn, Co-ops sent more than 2,500 gift cards to nominees and shared thousands more messages from customers thanking all those helping respond to the pandemic. This is only one glowing example of the many community projects funded throughout 2020. In total, FCL invested $8.1 million in community projects throughout the year.
“We will continue to persevere through this pandemic by working together, supporting our communities, and adjusting to ensure the long-term sustainability of our co-operative,” said Banda.