NWT/NUNAVUT
The North West Company Inc., which operates Northern and NorthMart stores in the NWT and Nunavut, saw a record $134.3 million in trading profits last year.
The North West Company Inc., which operates this NorthMart store in Iqaluit, saw a record $134.3 million in trading profit, according to its 2012 annual report. - NNSL file photo
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The Winnipeg-based, publicly-traded company released its 2012 Annual Report on April 8.
Sales increased for the 13th consecutive year, to $1.514 billion, including $1.043 billion in Canadian operations sales, which increased by $14.7 million, from $1.028 billion in 2011.
Food sales accounted for 72.2 per cent of total Canadian sales, according to the report, which also stated that strong food sales growth in its Northern markets offset lower sales in less remote stores.
Nutrition North subsidies, product assortment changes and improvements to its in-stock rates contributed to higher sales in the Northern market, according to the report.
"Food sales in stores impacted by the Nutrition North Canada freight subsidy had the largest increases building on the sales growth in 2011," the report states.
In response to protests over high food prices in remote, underserved Northern communities where the company operates, manager of corporate communications Connie Tamoto said North West profits are not excessive in its 129 stores across Northern Canada.
"We're a private company so we do make a profit off of the products that we sell. It's only about five cents to the dollar in the Northern market," she said.
The company invested in price reductions of 15 per cent or more on 175 key products sold in its Baffin Island stores with savings from flying merchandise directly to Baffin Island from its distribution centre in Winnipeg since September 2012, according to the report.
The lowered prices also contributed to the sales gain.
North West is mandated to pass on any subsidy on a product that the Nutrition North Canada program provides directly to the customer, Tamoto said.
"So we don't collect any of that money at all. We are audited by Nutrition North on this process and have passed all the requirements in every audit that we've had with them," she said. "So we don't retain any of the subsidies at all."
Shares of North West company Inc. (NWC) closed at $24.95 on April 25 on the Toronto Stock Exchange, up $0.20.
