2023-2024 financial results - Sollio Cooperative Group regains momentum
MONTRÉAL, Feb. 27, 2025 /CNW/ -Sollio Cooperative Group's results for 2023–2024 are some of the best the group has seen in a decade. At the close of the fiscal year ended October 26, 2024, Canada's largest agricultural cooperative with roots in Québec recorded a net surplus of $270.7 million, up 135% over 2023 ($115.4 million). Operating EBITDA also rose sharply to reach $418.4 million, compared with $361.6 million in 2023. Consolidated sales totalled $7.8 billion, down almost $500 million on 2023 ($8.3 billion). The decline in sales is attributable to market conditions—notably a significant drop in grain prices, which drove down feed selling prices, and a decline in farm input prices.
During its Annual General Meeting, Sollio Cooperative Group announced $25 million in patronage refunds and dividends for its members. The cooperative will also be providing members with a direct cash return to further support the network's growth by redeeming $30 million in shares.
"The effects of our recovery plan are accelerating," says Pascal Houle, CEO of Sollio Cooperative Group. "We've strengthened our financial position, boosted our operational performance, and improved our profitability. We can be pleased with our progress, but we can't let our guard down. We need to be laser-focused on financial stability as the key to sustainable, long-term growth."
Success driven by all three divisions
The Group's 2023–2024 results were made possible by a collective effort on the part of all three divisions: Sollio Food under the Olymel banners, Sollio Retail under the BMR Group banners, and Sollio Agriculture.
For Olymel, 2023–2024 was a pivotal year, achieving record operational performance. Net earnings reached $196.9 million, up 38.7% on the previous year. The year was thus marked by excellent results in pork production, helped by lower grain prices, and hence lower feeding costs. The fresh pork sector improved again this year, thanks to operational optimization initiatives and the arrival of new customers and products. However, the devaluation of the yen had a major impact on the profitability of the Eastern fresh pork sector, which remains in deficit.
In poultry, Olymel continues to perform well, with results in 2024 that are still satisfactory.
Sollio Agriculture posted a net loss of $3.9 million, which includes a $3.1 million loss from discontinued operations. This is a major improvement over the net loss of $59 million recorded in 2023. Moreover, it was achieved despite a decline in revenue that was mainly due to lower fertilizer and grain prices across Canada. Given the situation, Sollio Agriculture performed very well, achieving strong results in livestock production and successfully repositioning its grain sector to increase overall operating income. The crop production sector did see a decline as it returned to more normal market conditions, but the landing was softer than anticipated.
Last but not least, BMR Group managed to hold its own in a very challenging business environment. Housing starts were at an all-time low at the start of the year, due in part to high interest rates and high levels of household debt. There was a cautious recovery in the final months of the year, with the group posting a net surplus of $30.5 million for 2024, down $4 million on 2023.
Staying the course
Sollio Cooperative Group will continue to implement its strategic plan and focus on operational excellence in the coming months. By optimizing its execution and the quality of its operations, the cooperative will increase its margins, strengthen its EBITDA, stabilize its financial position, and free up space to reinvest in growth. "We have the courage to question our assumptions and implement new solutions while staying true to who we are," says Board Chair Richard Ferland. "Our business model has allowed us to adapt and seize opportunities for over 100 years. Moving forward, we'll continue to overcome challenges and do everything in our power to be efficient, effective and competitive as we work to strengthen our network and protect everything our members have worked so hard to build."
About Sollio Cooperative Group
Sollio Cooperative Group is Canada's largest agricultural cooperative with roots in Québec. Since 1922, it has been busy growing, rearing, farming and processing—and building the economy of tomorrow. These daily actions are part of the DNA of its 15,952 employees. With more than 120,000 members, farmers and consumers grouped into 42 traditional agricultural and consumer cooperatives, Sollio Cooperative Group helps feed people by bringing prosperity to farm families and ensuring a sustainable future for everyone. Through its three divisions—Sollio Agriculture, Olymel L.P. and BMR Group Inc.—it proudly acts as a driving force for economic and social development rooted in rural communities. Sollio Cooperative Group generates sales of $7.8 billion. Learn more about Sollio Cooperative Group: Sollio Cooperative Group
SOURCE Sollio Groupe Coopératif
Ian Riverin, Senior Advisor, Strategic Communications, 514-742-7783, [email protected]
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