The Wright Coop Posts Outstanding 3rd Quarter Results

by Marvin Pirila

The third quarter results, ending February 28, 2014, show some impressive results.  Grocery sales are up 32.59% over the same period last year.  Also, taxable grocery sales are up 11.79%, meat sales up 16.86%, and dairy sales are up 11.43%.    In fact, sales of every category are positive.

Some of the positive sales are attributed to the higher cost of sales for the same items.  The cost of groceries has increased 19.46%, for a net improvement of 13.13% (32.59% – 19.46%; Sales - Costs).  Similarly, the cost of meat increased 13.75%, dairy 10%, and tobacco 15.73%.

Groceries, taxable groceries, meat, dairy, and tobacco sales account for 82.29% of all sales and 62.42% of the cost of sales.

For the quarter, total revenues were $172,911.87 versus cost of sales of $134,727.27, for a gross profit of $38,184.60 or a 22.08% increase.  When expenses of $35,410.85 are subtracted from the gross profit a net income of $2,773.75 is left, a 1.60% improvement.  The expenses include a 10.10% increase in wages, whereas the rest of the expenses stayed the same or rose from (0.00% to 1.46%).  Overall, expenses increased 20.48%.

In a head-to-head comparison, the store brought in total revenues of $172,911.87 versus $77,662.40 in 2013.  For the quarter, the cost of goods sold for 2014 was $134,727.27 compared to $68,227.11 in 2013.  In 2014, gross profit was $38,184.60 whereas it was $9,435.29 in 2013.  The key figure, net income shows an improvement from a $8,603.16 or 11.08% loss in 2013 to a positive net income of $2,773.75 or 1.60% for the same period in 2014.

These results are impressive considering the rise in the overall prices of groceries and the coldest winter on record.  This winter contributed to higher heating, electricity, and snow removal costs.  The small market, limited advertising, and the suffering national economy are additional factors weighing on the business.

The figures from fiscal year 2014 are a remarkable turnaround from 2013.  In 2013, current assets fell, current liabilities rose, and inventories rose significantly to working capital.  There was a decrease in sales of $66,262 or 9.12%.

The Farmers’ Cooperative Company of Wright was first organized on April 1, 1919.  Its fiscal year ends on May 31.