Sollio Cooperative Group achieves record sales in 2019

Sollio Cooperative Group, formerly La Coop fédérée, achieved record sales in 2019, exceeding CA$7 billion (US$5.23 billion) in consolidated sales for the first time in the company’s history.

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(fintastique, Bigstock)
(fintastique, Bigstock)

Sollio Cooperative Group, formerly La Coop fédérée, achieved record sales in 2019, exceeding CA$7 billion (US$5.23 billion) in consolidated sales for the first time in the company’s history.

The Canadian agrifood company reported its 2019 consolidated sales reached CA$7.282 billion, a CA$766 million improvement when compared to 2018.

Meanwhile, the nearly-100-year-old company reported earnings of CA$79.4 million, which was down from the earnings of 2018 amid what Sollio Cooperate Group referred to as “a particularly difficult business context stemming notably from the global geopolitical and trade tensions that marked 2019.

Financial results by division

The Agribusiness Division, Sollio Agriculture, had a good year, with earnings attributable to members of CA$36.4 million, up CA$3 million over the previous year, the company reported.

The Retail Division (BMR Group), for its part, reported earnings before income taxes attributable to members, not including corporate expenses, of CA$16.7 million, compared with CA$16.9 million last year, a slight decrease of CA$200,000. Tighter controls and more advantageous trade agreements helped improve the margin, but earnings were offset by an increase in some operating expenses, including transportation costs, as a result of the labor shortage, as well as storage costs, due to a need for additional space.

Lastly, the results of the Meat Division (Olymel) were affected by a few significant events, including the Chinese embargo on Canadian meat imports, which had a negative impact on results, especially in the fresh pork sector. Its earnings before income taxes attributable to members stood at CA$67.1 million, compared with CA$167.9 million in 2018, a decrease of CA$100.8 million.

Name change

The financial results were released the same day the company announced it was changing its name from La Coop fédérée to Sollio Cooperative Group.

According to the company, along with the name change comes the adoption of a new brand strategy to support these efforts, an identity that confirms Sollio Cooperative Group's ambition to be a major player in turning agrifood resources into genuine, lasting collective prosperity. The new Sollio Cooperative Group brand evokes the words soil, sun and solidarity. It conjures up notions of cooperation and collaboration, but also courage, stewardship and lasting wealth, and will equip the organization to be a moving force in action, the company explained in a press release.

According to the Poultry International Top Companies rankings, Sollio Cooperative Group is the 20th largest broiler company in North America. It is also involved in turkey production.

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