Correction: An earlier version of this article incorrectly identified FCL as the parent company of 190 retail co-op stores across Western Canada. It has been modified to reflect that FCL is owned by 190 co-operatives in Western Canada.
It was a tough year for me Federation of Cooperatives Ltd. (FCL); While the company closed in on the black a bit, its earnings fell dramatically in 2020, according to its annual report.
Part of the reason may be the ongoing changes in the energy industry, according to the data.
FCL is owned by 190 co-operatives across western Canada.
Overall, FCL ended the year with $177 million in net profit. It’s a big number, but it dwarfs its annual sales of $7.9 billion.
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The biggest hit to its sales was from energy, for things like gasoline. The company’s energy sales fell by $1.3 billion in 2020, according to its CEO.
“The pandemic has completely disrupted people’s driving patterns and patterns of working and staying at home, causing a significant drop in demand in 2020,” Scott Panda explained.
Oil prices also fell during the pandemic at some point Below zero. But the drop in billions of dollars is not only because of the state of the world.
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FCL said the market has been changing for a while.
“Cars continue to achieve efficiency every year, and alternatives such as electricity and hydrogen are being considered and will affect the demand side,” Banda said.
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The company made some gains in 2020. Food sales generated nearly $20 million over the previous year; Meanwhile, home and building sales jumped by nearly $40 million.
“Everyone had a hammer in their pocket this past year, coming up with their to-do list,” Panda said.
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Looking forward, Panda said, FCL needs to adapt to changing energy demands over the next decade or so.
he said to her Oil refinery in Regina not produce as much.
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FCL said it is looking for ways to change and improve operations; It is unclear what these changes are at the refinery or in other areas.
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