On January 15th, Premier Cooperative held its 132nd annual meeting at WI Riverside Resort in Spring Green, WI. As part of the financial report, Premier CFO Andy Jones reported your cooperative had a very strong year with gross sales of $275 million and local net earnings of $16.7 million for fiscal year 2024, compared to the prior year sales at $308 million and $15.1 million in earnings. While total sales were down from prior years due to declining commodity prices, strong unit growth led by our feed and agronomy divisions, combined with solid performance from our energy and retail divisions helped to improve upon last year’s record local net savings.
Andy reported that with working capital at the end of the fiscal year sitting at $40 million, and no long-term debt, Premier’s balance sheet is extremely strong and well positioned for the future.
Board Chairman Steve Burns thanked the members and the employee team and focused on the responsibilities of the board and their commitment to future growth and success of Premier. Burns stated, “The purpose of our cooperative is creating value for its members by providing the products and services they need and to ensure Premier Cooperative remains financially strong and growing.” In keeping with this commitment, Burns reported that over the past five years we have invested $62 million in capital expenditures back into our cooperative, including $22 million from 2024 alone. Not only replacing worn out assets but constructing new facilities and expanding operations in growing markets have been the focus to ensure the future success of Premier Cooperative and its members.
In my management report, I provided detailed updates from each division, highlighting several significant projects completed and underway within our grain, feed, and agronomy divisions. These projects include fleet upgrades, facility expansions, and the addition of a new greenfield site. Our consistent financial performance has enabled Premier to reinvest in assets and future growth. We continue to generate earnings that maintain a strong balance sheet, reinvest in operations, seek new opportunities, and return cash to our members. This commitment is evident through our cash returns to our members and investments back into the cooperative. Matching last year’s record cash returns, we plan to return another $6 million in spring 2025. Over the past five years, we have invested $62 million back into the cooperative and returned $23 million in cash to our members. These investments and cash returns will continue to enhance our ability to meet the evolving needs of our members.
In closing, I would like to thank each of you for your tremendous support over the years that allow us to return record cash back to our members, award scholarships to the next generation, hire and retain the quality staff to serve you, and so much more. We appreciate the trusted partnerships we have built over the years and will continue to work hard each day to earn your business. Thank you.
