KANSAS CITY, Kan., MARCH 21, 2023 – Associated Wholesale Grocers, Inc. (AWG) BB #:101651 reported record consolidated company sales of $12.3 billion, an increase of 13.65% on a comparable basis over 2021 and distributed $273 million of year-end patronage immediately following its Annual Shareholders Meeting held today.
AWG’s cooperative net sales were $10.7 billion, up 10.08%. 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, an all-time high, reflecting the continued strengthening of AWG’s balance sheet. Additionally, the trading value for class “A” shares increased to $1,550 per share, an increase of 7.6%.
“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 chief executive officer, of AWG.
“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 now become permanent in 2023, and significant investments in supply chain infrastructure, technology platform upgrades, and continuing implementation of the ambitious 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 cooperativefunded 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, effectively reducing AWG’s expense rates.
Barry Queen, AWG’s board chairman, stated, “2022 was an excellent year for AWG, and I’m incredibly proud to be a member of this cooperative. 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.”
ABOUT ASSOCIATED WHOLESALE GROCERS, INC.
Associated Wholesale Grocers, Inc. (AWG) is the nation’s largest cooperative food wholesaler to independently owned supermarkets, serving 1,100 member companies and over 3,400 locations throughout 31 states from 9 wholesale Divisions. Consolidated sales for AWG are $12.3 billion. In addition to its cooperative wholesale operations, the company also operates subsidiary companies that provide certain real estate and supermarket development services, health and beauty care, general merchandise, pharmaceutical products, specialty foods, and natural and organic products. For more information, visit AWGinc.com and follow @AWGCorporate on Twitter.
Contact: Lori Turner
Director of Communications