FISCAL YEAR 2023 MID-YEAR RECAP
by: Tyler Olson, CFO
We have completed our sixth month of business in fiscal year 2023. At the halfway point, we are happy to report that we are ahead of budget in every division within our company.
Our fall business was successful, with volumes at or near budget, and our margins remain high with some market appreciation and good purchasing decisions.
As you know, these are cyclical trends. So when we are doing well, our regional partners (CHS & Land O’Lakes) and our local partners/owners (you) are usually in similar positions. Our regional partners had record years in FY2022, and that allocation helps us directly within our FY2023 financial results.
Our investment partners (Best Oil, etc.) also directly benefited from strong performances and will help bolster our bottom line. These diverse partnerships help NuWay-K&H Cooperative spread out trends or seasonality and focus on our members’ needs.
We fully expect to finish out FY2023 by meeting our budgetary goals. Market conditions in many areas have softened. As you watch your grain markets, you have seen similar trends. We are still optimistic about profitability and navigating through any trends that come our way. We will continue to manage our expenses accordingly and budget new projects, assets, and investment in people to create even more synergies.
We have managed our cash flow very tightly over the last 10 years and put ourselves in a position to reduce our borrowing to nearly zero. In the current interest rate market and the short-term future, this savings is significant: $350,000 to $500,000 annually. While cash is always king, it is even more valuable with the current market, and we will continue to give priority to managing cash flows, interest, and depreciation expenses.
We have not, in the past, actively marketed the finance opportunities NuWay-K&H Cooperative has to offer or has access to. The opportunities for 2023 include:
- Winfield Secure Financing
- Pioneer Bank Solutions
- Compeer Input Financing
- There are other vendor specific options as well. Please reach out to your account manager for additional information.
As always, thank you for your business and continued loyalty. We look forward to earning your business through the 2023 season. If you have any questions or want to stop in for a discussion, please do so. We look forward to your feedback.
Last, I want to mention we are accepting scholarship applications. Twenty $500 scholarships will be awarded. This annual scholarship program is open to all students from southern Minnesota and northern Iowa, as well as to all patrons, customers, employees, and directors of NuWay-K&H Cooperative, and their children. To be eligible, an applicant must attend or plan to attend an accredited college, university, or technical school. We encourage (but do not require) the applicant to be seeking a degree or certificate in agricultural studies.
For more information, visit our scholarships page.