FCL uses strong financial year to invest in co-ops, communities
March 2, 2020
Nearly 300 delegates representing 168 local co-operative associations from across Western Canada took part in Federated Co-operatives Limited’s (FCL) 91st Annual Meeting today. Together these local co-ops – members and owners of FCL – reviewed the second-best financial year in FCL’s history, discussed the Co-operative Retailing System’s future and elected FCL’s Board of Directors.
“We’re in a challenging business environment in Western Canada, but we can face it with optimism because our federation is galvanized like never before, united around our collective purpose,” FCL CEO Scott Banda shared with delegates. “We have a responsibility to our communities, to co-op members and to their future. We can confidently say that we’re living up to that responsibility by making significant, tangible investments in all our communities across the West.”
In 2019, FCL announced the construction of a new fertilizer terminal in Alberta, acquired the Terra Grain Fuels ethanol production facility in Saskatchewan, made $237 million in capital investments at the Co-op Refinery Complex and received the Large Co-operative of the Year Award from Co-operative and Mutuals Canada.
From a financial perspective, FCL recorded revenues of $9.2 billion, down four per cent from $9.6 billion the previous year. From our revenues, we realized earnings of $959 million. Most importantly, $649 million from these profits was returned to local co-ops and their communities, with every dollar staying in Western Canada.
“Last year was one of our best financial years ever. We share our profits with local co-ops and they have a direct, positive impact on the millions of members and hundreds of communities that support their local co-ops—it’s a virtuous circle,” said Banda.
The importance of returning these profits to local co-ops and their communities is well understood by Sharon Alford. She has attended many FCL annual meetings over the last 18 years, first as a delegate for Swan Valley Co-op and then as a director on FCL’s board. In her new role as FCL’s President and Board Chair, she’s inspired by the co-operation she has observed between local co-ops.
“It’s encouraging to see all the local co-ops come together to share their diverse perspectives to build on our common belief in the co-op model and to ensure that Co-op thrives,” said Alford.
FCL’s 2019 annual report, financials and more highlights can be viewed at www.fcl.crs/annual-report.