Federated Co-operatives Ltd. realized a profit of $1.2 billion on sales of $10.7 billion in 2018. That’s up significantly from 2017’s $628 million profit on $9.8 billion in sales.
CEO Scott Banda attributed the dramatic results to greater efficiency in FCL’s energy operation, which makes up two thirds of the company’s sales, reports the Saskatoon Star Phoenix. At the same time, Banda warned that FCL needs to continue to innovate, especially in consumer retail.
Addressing about 450 attendees at FCL’s AGM on Monday, Banda said the company had been successful in moving away from an out-of-date business model and “confused” brand over the course of the last decade. But he added that the grocery and home hardware businesses still need work.