North Coast Co-op closed Fiscal Quarter 2 2019 (FY19) on September 22, 2018. Combined sales in the 2nd quarter for the Arcata and Eureka stores were $8,529,789, bringing year-to-date net sales to $17,214,052.
Year to year, 2nd quarter FY19 sales were down $141,341, a 1.6% drop compared to the second quarter of Fiscal Year 2018 (FY18). Cost of Goods Sold were also lower in the second quarter of FY19, resulting in a slightly higher gross margin. Despite cutting Payroll Expense in second quarter FY19, Total Operating Expenses were higher compared to FY18 due to higher Benefits and General & Administrative Expenses during second quarter FY19. Expenses exceeded Gross Margin resulting in a Net Income Loss of $392,914 for the second quarter of FY19, bringing year-to-date net income to a negative $733,738. However, it was determined that payroll, payroll taxes and benefit expenses originally posted to the first period of FY19 should have been posted to the fourth quarter of FY18. The audit conducted in December 2018 will determine the final, correct amount, which will eliminate any income taxes due for FY18 and reduce the net loss for FY19.
The Co-op’s assets were slightly less at the end of second quarter FY19 compared to FY18 by $104,439 due to less cash on hand and remaining equipment purchased for the ‘on-hold’ Eureka store remodel. Owner shares rose to $3,509,682, an increase of $59,440 at the end of FY19 second quarter.
The Co-op raised the dividend rate for C-Shares from 2.00% APR to 2.65% APR effective December 23, 2018. Please call our Membership Coordinator at 707-822-5947 ext. 234 if you are interested in becoming more invested in the Co-op.