Financial Reports

3rd Quarter 2016 Financial Report

Greetings to all!  This is the first report of the Co-op’s finances to be shared on our website, so if you’d like to know more about how we are faring this year, please read on.

The table below shows our Co-op’s actual revenue and expenses through the end of September relative to what we budgeted.  To date, we are posting a profit of nearly $120,000, which is only $17,500 less than we had set as a goal in the budget we crafted around this time last year.  While the income tax on this profit has yet to be paid, this does represent a sizable increase in cash which we are planning to set aside for future expansion (a 3rd store?) opportunities.

As with many other food co-ops around the country, our sales growth is not as strong as it used to be.  The double-digit growth of the ‘90’s and early ‘00’s was great while it lasted, but now many other grocery retailers are competing with us for a share of the organic food market. So, while we budgeted for an increase in sales of a bit over 4% for 2016, our current growth is more like 2.5%.  That difference adds up to the $200,000 shortfall shown on the first line of the report.  After the wholesale cost of the goods we sold is subtracted, the gross sales revenue (or gross margin) is about $77,000 less than our goal.  When other revenue sources, such as newsletter ads, memberships, and interest, are included, we have a net revenue total of a little over $4.5 million with which to pay for all of our expenses.

Even though our net revenue ends up being $75,000 less than expected, our expenses were also less.  All of our expenses have been sorted into 4 major, and 2-3 minor, categories.  ‘Community and Marketing’ expenses include donations to local organizations and events, outreach projects, our ‘Table’ newsmagazine and advertising.  ‘Staffing’ expenses include not just payroll wages, but also payroll taxes, medical benefits, and labor-based discounts.  ‘Member Discounts’ are our entitlement discounts of 10% for senior, disabled and low-income members as well as for local non-profit organizations and trade businesses (those whose products we sell).  ‘Operations’ expenses are for covering the costs of doing business in our stores – maintenance and repairs, supplies, utilities, etc.

Overall, our total expenses are about $45,000 under budget and, with a bit of ‘Other Income’ from tax refunds and dividends, we are showing a bottom line profit of nearly $120,000, only $17,500 less than our goal.

If you would like to know more about the detail underlying the numbers presented in this report, feel free to contact Corey at our downtown business office, 360-357-1106 x12.

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