Pembina Co-op 2025 Annual Report

Pembina Co-op held its Annual General Meeting on June 17, 2026 to review the results of the 2025 fiscal year (ending Janaury 31, 2026. Members had the opportunity to hear updates from the Board of Directors, Chief Executive Office, and Chief Financial Officer on the past year's performance, community impact, and future plans.

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Board of Directors Report

During the 2025 fiscal year, the Board of Directors met nine times.These meetings included regular reviews of operational performance, progress on strategic initiatives, and key governance matters such as member equity applications and withdrawals. The Board also participated in industry and system-level discussions, including the Leadership Conference and the FCL District meetings, ensuring we remain informed and connected within the broader Co-operative system. 

Sales & Earnings: Pembina Co-op delivered a solid year in 2025. Total sales reached $208.2 million in sales, a 2.4% increase from 2024. All business units saw revenue growth during this fiscal year. Pre-tax earnings were $10.2 million, compare to $8.7 million in 2024.

Financial Position: Member equity, reserves, and retained savings increased to $96.4 million, up from $91.4 million in 2024. Total assets grew to $144.6 million, an increase of about $1 million year-over-year. This strong balance sheet continues to provide a solid foundation for future investment and growth.

Patronage Allocation: $5.6 million will be returned to our members

Cash Repayments: Nearly $4.8 million was returned to members in cash repayments

Capital Investments: $2.4 million invested in 2025, including facility upgrades, new equipment, and expanded fertilizer storage capacity. Looking ahead to 2026, the Board has approved approximately $2.4 million in capital projects, including land acquisition for future expansion, upgrades to key operating sites, and an assortment of rolling stock and operating equipment.

Community Giving: In 2025, more than $119,000 was donated to local organizations. Our employee volunteer program also continued to grow, with nearly 1,100 volunteer hours contributed. 

The Board also made the difficult decision to close our petroleum keylock at Mariapolis. This decision was driven by several important factors. The existing equipment had reached the end of its useful life, with critical components becoming impossible to source for repairs. A full system replacement would have required a level of capital investment that could not be justified based on the site's long-term financial viability. In addition, the age and condition of the underground tanks and associated piping presented a growing environmental risk, which we take very seriously. While this was not an easy decision, it reflects our commitments to responsible asset management, environmental stewardship, and the long-term sustainability of our organization.

The Board of Directors would like to thank you, our members, for your continued support. By choosing to do business with your Co-op, you are investing in a locally owned organization that returns profits to its members and reinvests in the communities we serve.

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Chief Executive Officers Report

CEO, Curtis Lehouillier, outlined the year's progress under Pembina Co-op's five corporate performance pillars.

Market:

The Market pillar focuses on our members, more specifically sales growth and membership growth. Total sales for 2025 were $208.2 million. Our Home and Building Supplies Division led the way achieving significant sales growth, with all five Home Centres reporting increased revenues. Overall sales within this division increased by nearly 25%. Our Agro Division, total sales remained relatively consistent with the previous year. In the Energy Division, petroleum sales increased by 3%, despite slightly lower overall fuel volumes. Our Consumer Products Division achieved modest sales growth of approximately 1.8%. 

On the membership side, we continue to see strong steady growth. In 2025, we welcomed 523 new members, up from 440 the previous year. 

Operations:

The Operations pillar focuses on how effectively we run our business. This includes profitability, efficiency, and safety. Local earnings of $6.1 (2.9% of sales) exceeded the 2% target. Our EBITDA target (Earnings before interest, taxes, depreciation, and amortization) was 3.5%. in 2025 we exceed that target achieving an EBITDA ratio of 4.2%. Inventory management remains a key priority. Our GMROI (Gross Margin Return on Inventory) reached 54%, significantly exceeding our target of 45%. At the same time, inventory turns also exceeded expectations at 4.2 turns, well above our target of 3.5.

Health and safety continues to be a major focus in our operation. In 2025, we maintained our high standard of safety, achieving an internal audit socre of 95%. 

Financial:

The Financial pillar focuses on strength of our balance sheet and our ability to support future growth. Over the past five years, Pembina Co-op has allocated $29.2 million to members, returning $25.8 million in cash. Member equity has grown to $36.1 million, while reserves have increased significantly to $60.4 million. 

This growth in reserves strengthens our financial position and provides us with the capacity to reinvest in the business. Looking ahead, we are planning to invest $17.5 million into capital projects over the next five years.

Sustainability:

Sustainability reflects our role as a responsible corporate citizen — both environmentally and within our communities. In 2024, we took steps to reduce our environmental footprint by installing solar panels at our Administration Office which has led to a reduction in hydro costs in 2025 of more than 50% at that location. We also continue to invest in our Sustainable Roots Programs, supporting tree planting initiatives in local communities. We also participate in the LOOP food recycling program at our Souris Food Store, where we have reduced food waste by more than 2.2 metric tonnes. 

Equally important is our impact on the communities we serve. In 2025, Pembina Co-op donated nearly $120,000 to community initiatives, paid more than $500,000 in property taxes, returned $4.8 million in cash to members. These are dollars that stay local — supporting the very communities that support us.

People:

The People pillar focuses on our employees, our most important asset. In 2025, 10 employees participated in leadership development programes, and over half of our team now has formal development plans in place. We also held our 3rd Annual Employee Appreciation Evening, recognizing long-service milestones and contributions with employees hitting 30, 20, 15, 10 and 5 year milestones this year.

On behalf of myself and the entire team at Pembina Co-op, thank you for your continued patronage and trust.

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Auditor's Report & Financial Statements

CFO, Delia Bahuaud, presented the financial results for the year ending January 31, 2026.

• Total Sales: $208.2 million (2024: $203.3 million)
• Gross Margin: $22.9 million, or 11% of sales
• Local Savings from Operations: $4.5 million, or 2.2% of sales
• FCL Loyalty & Patronage: $1.7 million loyalty payment and a patronage refund of $4.1 million
• Net Savings: $9.66 million after taxes, distributed to retained savings, general reserve, and as a patronage allocation to members
• Cash Flow: Cash increased $3.7 million, leaving us with an ending balance of $39.2 million

MNP LLP, Chartered Professional Accountants, issued a clean audit opinion stating the financial statements fairly present the Co-op's position in accordance with Canadian accounting standards for private enterprises.

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Thank You!

Pembina Co-op thanks its members for their ongoing support. By shopping locally and supporting your Co-op, you not only share in the profits, but also keep dollars in your community, positively impacting where we live, work, and play.