Associated Wholesale Grocers (AWG), the nation’s second largest cooperative food wholesaler, has reported consolidated net sales of $8.38 billion, up 6.8 percent over the prior year, marking the first time the company has exceeded the $8 billion mark. Same-store sales were up nearly 2 percent over the prior year.
Operating income was a record $201 million, up $25 million from the previous year. Income return to retail members was $183 million, up $10 million from the prior year. The patronage distribution amounted to 2.81 percent to qualifying sales, a new record. Total cash distribution returned to shareholders—including interest, allowances and patronage—was $522 million, up $36 million from the prior year.
Gross margins within the cooperative, including cash discounts paid by suppliers, was 5.8 percent, virtually flat with the previous two years. Operating costs were reduced 10 basis points to 3.2 percent. Trading value for class A shares increased 4 percent to $1,770 per share.
Jerry Garland, president and CEO of Kansas City, Kan.-based AWG, said, “AWG retailers continue to reap the benefits of our reinvestment of operational savings into lower gross margins and more competitive cost on merchandise. AWG is in the midst of a real growth cycle with almost a million square feet of new retail space under construction.
“Our consistent performance is a testament to the co-operative model where everyone has the same opportunity for success, and where transparency in the numbers breeds trust,” he added.
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