Kansas City, Kansas-based Associated Wholesale Grocers Inc. reported record consolidated company sales of $12.3 billion, an increase of 13.65 percent on a comparable basis over 2021, and distributed $273 million of year-end patronage, following its annual shareholders meeting held March 21.
AWG’s cooperative net sales were $10.7 billion, up 10.08 percent. The total distribution of cooperative benefits returned to shareholders, including interest, allowances and patronage, was $543.6 million. Total members’ investment and equity increased to $658.7 million, reflecting AWG’s balance sheet. Additionally, the trading value for class “A” shares increased to $1,550 per share, an increase of 7.6 percent.
“We achieved these remarkable results through same-store sales increases to member stores and new member growth and overcoming expense escalations,” said David Smith, president and CEO.
“We work to strike the right balance of capital investments for improvements and sustainable growth, maintaining the low cost of goods our members need to compete daily and delivering a predictable patronage return.”
AWG invested $6.41 million in temporary fuel surcharge relief, which will become permanent in 2023, and significant investments in supply chain infrastructure, technology platform upgrades, and continuing implementation of the convergence project to reduce cost-of-goods to member stores.
The company counteracted declining off-invoice vendor allowances by investing $41.2 million incrementally in cooperative funded product price reductions of national and store brands. Those investments (48 basis points) were primarily funded by inventory gains and member retail sales growth that outpaced peer retailers, reducing AWG’s expense rates.
“2022 was an excellent year for AWG, and I’m incredibly proud to be a member of this cooperative,” said Barry Queen, AWG’s board chairman.
“I’m excited about AWG’s plans for continuing growth to further benefit all members. We have a leadership team and board of directors that work closely together to ensure the cooperative remains strong and focused on the needs of our members – for the challenges of today and tomorrow.”
For more information about Association Wholesale Grocers, visit awginc.com.
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