By Deb Kermeen, TCCP CFO
The Fiscal Year (FY) 2020 (July 1, 2019–June 30, 2020) budget was prepared by TCCP management, reviewed by the board’s finance committee, and approved by the board at their June 2019 meeting.
We are budgeting for positive net income of $462,411 in FY2020. Net income was $111,873 in FY2019.
Total Sales. The FY2020 sales projections for our three retail sites, the Catering and Commissary program, and Co-op Partners Warehouse are based on current sales trends; changes in the Minneapolis-Saint Paul area grocery market; and opportunities to distribute produce, groceries, and prepared foods in our delivery region. We budgeted a 2.3% increase over FY2019.
Gross Margin. Gross margin is the sales income that remains after paying for the cost of goods sold. It is commonly reflected as a percentage of sales remaining after subtracting the cost of goods sold. Gross margin dollars are the funds used to pay for our operations. Our gross margin of 35.9% is an increase over last year’s gross margin of 34.7%
Personnel. Personnel expenses include labor hours and benefits. These costs are budgeted at 23.3% of sales compared with 22.4% in FY2019.
Other Operating expenses. Other operating expenses include our building expenses, operating supplies and delivery truck expenses for our CPW warehouse. Other operating expenses are consistent with FY2019 as we gain efficiencies in our operations and benefit from modest inflation.
Capital Budget. The FY2020 capital budget is $611,500. This year, we plan to replace equipment that can no longer be repaired, upgrade an old section of the roof at the Wedge and add a new Customer Service desk at Linden Hills. We continue to upgrade our technology infrastructure. Over the past four years, we have made significant investments to keep our business facilities and infrastructure current and fresh.
We look forward to continuing to provide each of you the best possible customer experience along with the high-quality products you have come to expect from TCCP.
If you have questions or would like a copy of last year’s financial report, Deb can be reached at firstname.lastname@example.org or 612-465-8818
|$||% of Sales|
|Cost of Goods Sold||$46,105,799||64.1%|
|Other Operating Expenses||$9,341,402||13.0%|
|Other Operating Income||$467,455||0.7%|
|Income from Operations||$143,832||0.2%|
|Other Income (Expense)||$318,579||0.4%|