Solid volume growth in GROWMARK business units produced record sales for the cooperative for the 2014 fiscal year, which ends August 31.
Jeff Solberg, chief executive officer, reported unaudited, estimated sales of $10.2 billion for FY 2014. Pretax income is estimated at $180 million, a strong year which will once again exceed the key financial target of 12 percent return on capital. An estimated $90 million in patronage refunds will be returned to GROWMARK member cooperatives and farmer-owners.
“The GROWMARK System has spent the year strengthening the foundation of excellent products and services that the FS brand is known for: taking care of business but also Building on the Best and Bringing You What’s Next,” Solberg said.
Operational highlights for the company’s business units were also reported at the Annual Meeting:
The Seed Division had an excellent year with 3.5 million units of corn and soybeans shipped, thanks in part to a well-managed program called “Member Millions,” which has brought a lot of attention not just to selling seed but ensuring an adequate supply and providing timely delivery.
Plant Food also had a very good spring season as position and risk management captured income opportunities, along with higher volume movement.
The GROWMARK Retail Grain business segment, volumes recovered from the drought of 2012, but markets did not provide the opportunity to meet expected profitability. In spite of this, grain recorded sales volume of 200 million bushels and pretax income of $5 million. GROWMARK’s commitment to the grain business works to ensure there is a farmer-owned grain marketing system in our GROWMARK territory.
Retail Supplies business units operated in overdrive throughout spring to stay ahead of the producers’ needs – registering sales of $1.8 billion and pretax income of $3.5 million.
Solberg commented, “Our System is driven by the vision of our directors – the talents of our employees – and the commitment of our members. Each and every one of you has ensured we continue “Building on the Best.” Chairman Reifsteck hit the nail on the head earlier when he said, “Taking care of business is neither common nor easy,” but I would add…“it is absolutely necessary.
“We will take care of business in order to preserve our heritage, maintain our reputation in the industry, and build on our success. For nearly 90 years, our patrons have known us as a reliable supplier of quality products and services. We will enhance that reputation as we move forward.”
GROWMARK is a regional cooperative providing agriculture-related products and services, as well as grain marketing more than 40 states and Ontario, Canada. GROWMARK owns the FS trademark, which is used by affiliated member cooperatives. More information is available at www.growmark.com
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