Canadian poultry and pork company Olymel, and its parent group Sollio Cooperative, reported a return to profitability in fiscal year 2023 after facing significant financial losses in the prior year.
Sollio Cooperative on February 29 reported the financial results of the 2023 fiscal year, which ended on October 28, 2023.
Sollio ended the year with a net surplus of CA$115.4 million (US$84.96), rebounding from a net loss of CA$336.9 million during the 2022 fiscal year.
“We are pleased with and proud of these results,” said Pascal Houle, Sollio CEO. “Not only have we restored profitability, but the trend we see for the coming years is encouraging. We’ve spent the past few years implementing an ambitious, necessary and realistic recovery plan, and it’s paying off. The plan has been instrumental in significantly reducing our debt and solidifying our financial footing, while limiting the impact on our marketing tools and services to members, which are at the heart of our mission.”
Of Sollio’s three business divisions, only the Sollio Food division, under the Olymel banner, recorded financial improvement during the past fiscal year. This business division ended the fiscal year with a net surplus of CA$138.3 million in 2023. During the previous fiscal year, a net loss of CA$446.1 million was reported.
Olymel achieved this turnaround partly from the strength of its poultry business. And despite Houle reporting that the company did not achieve profitability in the fresh pork sector, it did improve its performance by reducing its slaughter volume, consolidating plants and distribution centers, disposing of non-strategic assets, recruiting foreign workers to offset local labor shortages, and focusing on value-added products.
The resumption of exports in some markets also fueled the higher profits.
Other Sollio Cooperative results
Sollio Retail, operating under the BMR banner, reported a net surplus of CA$34.5 million for 2023, a decline from the CA$41 reported one year ago. The company attributes this decline to difficult market conditions, including high household debt levels and unusually high interest rates and inflation.
Sollio Agriculture, which specializes in the supply of agricultural inputs and value-added agronomic services, faced challenges during 2023 including a volatile market and a substantial decline in commodity prices. The division experienced a loss of CA$53 million in 2023, compared to a gain of CA$19.6 million in 2022.
Sollio Cooperative Group, formerly known as La Coop fédérée, changed its name in February 2020.
