Sollio Agriculture closed the 2023-2024 fiscal year with a performance surpassing its objectives. Sales reached $2.510 billion, excluding discontinued operations. This decrease of $333 million (11.7%) year over year was primarily due to lower commodity prices in all business sectors across Canada, and to the exit from direct grain merchandizing activities.

Despite the drop in sales, we saw growth in operating EBITDA, underpinned by remarkable performance in the poultry sector, particularly at our breeding farms and hatcheries. In Western Canada, we saw a significant uptick in crops, both with our joint ventures and in supply to independent customers. We also saw gains on feed mill ingredients, which strengthened our competitiveness in the feed sector. Our regional partnerships for livestock production in Québec were another strong pillar of our success this year, as was the growth of livestock production in Atlantic Canada.

Overview by sector

Livestock production

Our livestock production business units performed well across the country.

In Québec, the results of our joint ventures and regional partnerships were much stronger than in 2023. The impressive performance of our breeding farms and hatcheries also drove growth in the sector. In pork, there was a predictable drop in feed volumes due to lower livestock numbers, but results were better than expected. The single-ingredient trend had an impact on all productions, but thanks to our competitive offer, we’ve been able to maintain volumes and increase margins.

In Western Canada, after a challenging year in 2023, we ended 2024 with a sizable margin increase, despite a slight decrease in total tonnes sold. This was the result of better inventory control and our favourable purchasing positions. And we saw strong performance in the pork sector thanks to operational improvements and new major accounts.

In Atlantic Canada, a combination of careful cost management and further position gains with our procurement strategy resulted in significant growth. In poultry, the decision to focus on the layer market improved performance. In ruminants, our focus on value-added inputs and sales revenue per cow offset the drop in volumes of complete feed.

Crop production

In crop production, 2024 brought a return to normal after three exceptional years in Québec, strong growth in Western Canada, and a decline in Ontario and Atlantic Canada.

In Québec, seed demand was influenced by an early spring in some regions and a late one in others. Working with retailers, we were able to meet the needs of producers and increase our sales volumes. In fertilizers, we made positive gains despite some order delays, and in crop protection, we were able to meet customer needs. The results of certain joint ventures were down due to lower volumes and margins compared with the previous year.

In Western Canada, results exceeded expectations, thanks in particular to an effective fertilizer supply strategy that ensured we were able to keep product available at an affordable cost. Wetter-than-usual weather conditions also drove increased demand for fungicides, resulting in higher volumes in crop protection products. A similar effect was seen in Ontario and Atlantic Canada. In both regions, the fertilizer market has calmed down after two record years of higher operating expenses and financial pressure on farms. In contrast, the Agrico network achieved very good results in wholesale, with volumes on the rise.

The seed sector performed very well, and we maintained our market share. Our biggest success this year was corn seed sales, with record volumes. In soybeans, growth in volumes was mainly driven by favourable markets in Ontario and Atlantic Canada. In forage, volumes were up in Québec thanks to a more focused product offering, which allowed us to be more competitive.

Exit from direct grain merchandizing

Our exit from direct grain merchandizing is ongoing. From an operational standpoint, we recorded an increase in volumes transshipped at the export terminal, and expenses are well under control.

The grain business unit was affected by the Sollio & Grains Québec investment, which underperformed—a predictable outcome given the decision to end the provincial grain partnership. We implemented the new grain merchandizing model this year and we remain involved in the grain value chain along with the cooperatives to support sales to major customers.

Clear priorities

Much of the 2023–2024 fiscal year was dominated by the strategic planning exercise. The goal was to improve our financial health, grow our EBITDA, and reduce our debt level in order to ensure Sollio Agriculture’s viability over the long term. We identified a series of value-creating initiatives in three areas, all focused on our core business.

For the first area, we continued to pursue operational excellence by kicking off the transition to a cost optimization model in our plants, improving our supply risk management, and using our distribution assets to their fullest.

In our second area, we made further progress in improving the relevance of our offering by repatriating all our cereal and forage products to Maizex, thus transitioning to a single seed brand. On the technological front, the use of AgConnexion continued to grow across our networks, resulting in additional revenue.

And our third area involved refocusing on activities that are more closely aligned with our core business, with the goal of crafting a relevant and competitive product and service offering that sets us apart and creates value for farmers. We did this by fully acquiring the shares in Entreprise Couvoir Côté, which consolidated our position as Canada’s second-largest hatchery operator, and by deploying our new grain merchandizing model.

With these initiatives and the continuous improvement of our operations, Sollio Agriculture is now in a strong financial position. We’re working hard together to achieve our operational goals and hit our targets for financial performance and debt reduction, both of which will take us into our next phase of growth.

Other highlights

There were a number of cross-functional achievements that contributed to Sollio Agriculture’s 2024 performance. We made progress in occupational health and safety, with a drop in indicators for the frequency, severity and number of incidents. We also adopted new technologies, including new hiring management software to facilitate recruitment, and continued to emphasize the importance of strong cybersecurity practices. We moved ahead with our corporate responsibility action plan and kept working to set our greenhouse gas reduction target.

Conclusion 

We had a good year in 2024. We worked as a team with our cooperative and partner networks to deliver better results and surpass our financial targets. We launched several of the initiatives from our strategic plan, which contributed directly to our improved performance.

Our efforts remain focused on activities that create value for farmers. We’re moving forward with drive, determination and a solid plan to get the organization financially healthy and then reorient towards growth in a business landscape that’s sure to bring many more challenges.

To all our employees, thank you. You’re the reason we achieved everything we did this year and enjoyed such satisfying results. Thanks also to Pascal Houle, CEO of Sollio Cooperative Group, for your unwavering support. And thanks to the Board of Directors for the invaluable link you provide to our farmers and their families.

In 2024, BMR Group reported positive results, with total sales of $1.449 billion, shrugging off the constantly shifting economic conditions. An excellent performance marked by complex challenges.

Since 2023, the retail industry has been operating in a volatile environment. Housing starts reached an all-time low due, among other things, to high interest rates implemented to control inflation and a high household debt rate. This trend continued in 2024, with a cautious economic recovery in recent months. Despite interest rate cuts initiated in 2024, household debt levels have remained high. In addition to the uncertain economic conditions, increased competition in the industry continues to push players to adopt more aggressive strategies for increasing their market share.

Despite weaker results than in 2023, which was the second-best year in BMR’s history, BMR ended fiscal 2024 with results that exceeded expectations. This performance was mainly due to several key strategic actions that boosted our competitiveness and efficiency. We actively recruited new vendors, expanding our network and market influence. We continued to manage our spending and operational optimization initiatives with discipline, enabling us to maintain financial stability, increase our productivity and improve the quality of our customer service offering. Finally, the accelerated development of our products under exclusive brands due, among other things, to our partnership with the A.R.E.N.A. Alliance, played a key role in our growth strategy.

As part of its commitment to responsible corporate citizenship, BMR Group developed a rigorous three-year action plan to ensure sustainable management of its operations and to reduce its environmental footprint. A number of concrete initiatives have already been launched, including a pilot project for managing residual packaging materials from distribution centre shipments, and several other actions will be taken in the coming months to achieve the objectives set.

Renewed strategy, attractive network

While operating efficiently on a daily basis, BMR Group has given serious thought to the future of its network in an industry where consolidation and competition are intensifying. A strategic plan to improve performance and profitability has been developed, in collaboration with the vendors in our extensive network. This plan is based on five major projects: strengthening the value proposition for PRO customers, increasing our vendors’ performance and serving consumers in a more profitable way, optimizing forest product costs and sales through team synergies, reducing operating costs while adjusting on-demand service, and aligning the marketing strategy with the needs of professionals and consumers.

BMR Group is constantly strengthening its presence in the construction and renovation industry in Eastern Canada. Our network continues to grow. In 2024, two new vendors representing three stores joined our extended family, while two network vendors each acquired a store outside the network, bringing them under the BMR banner.

The Agrizone brand remained a key pillar in BMR Group’s growth strategy in 2024. With Agrizone celebrating its 15th anniversary in 2025, the banner is at the heart of the organization’s new strategic plan, which promotes the group’s growth outside Québec by offering a unique experience to vendor-owners.

The organization has begun in-depth work on significantly rethinking its market positioning. To distinguish itself from the competition and be a destination for PRO customers, while flawlessly serving retail customers, BMR Group is focusing on three key objectives: strengthening its reputation, increasing store traffic and adopting a multi-platform, digital and traditional approach to optimize its outreach. Development of the new positioning will continue in 2025, and consumers will soon see concrete results across the entire network, in stores and on the ground.

Accelerated development of products under exclusive brands

Fiscal 2024 was the first full year of the strategic partnership with the A.R.E.N.A. Alliance, which enables us to offer our customers products under exclusive brands that are of comparable quality to major national brands at very competitive prices.

In 2024, no fewer than 600 new products were developed, delivered or were in the process of being delivered, under the exclusive BMR, Fixel, Torkk, Architek, Opaz, Splendi, Botaflora, Agrizone and Atika brands. This strategy is very promising, as it appeals to our customers, contributes to our growth and strengthens our competitiveness. For 2025, BMR Group plans to develop nearly 800 new products under its exclusive brands.

Favourable trend for 2025

Our business has a solid foundation and a strong financial position and is well positioned for the future with a clear and rigorous strategic plan while economic indicators are pointing to a recovery in the construction and renovation industry. At the end of 2024, housing starts in Québec and the Atlantic provinces were already increasing. This trend seemed less robust in Ontario but is expected to improve in 2025.

Interest rate decreases are expected to continue in the new year, bolstering household confidence and completion of construction and renovation projects. Various government programs intended to accelerate the construction of rental and social housing are also expected to encourage completion of a number of housing projects.

I would like to thank our vendors and network cooperatives for making possible what we achieved last year. Thank you, too, to Pascal Houle, Chief Executive Officer of Sollio Cooperative Group, to Richard Ferland, President, and the Board of Directors. I also extend my warmest thanks to all members of our team. Together, we are making BMR Group a large and successful organization.

Olymel recorded net sales of $4.566 billion in fiscal 2024, its third best performance ever. These impressive financial results stemmed mainly from sustained optimization efforts in recent years, the benefits of which we are now reaping.

Cleaning up our balance sheet, optimizing our operations and logistics, and modernizing our systems have resulted in deep transformations. Olymel has become more resilient, strengthened its foundations and is now well positioned for the future. Fiscal 2024 was also highlighted by an un precedented almost equal breakdown of our operating profit between our pork and poultry operations. This balanced diversification marks an important milestone in our business model and significantly reduces our exposure to market risks.

Hog sector

Fresh pork and hog production

Overall, the hog sector showed exceptional improvement in 2024, mainly due to lower grain prices that reduced hog production costs. In the fresh pork sector, the situation remains more difficult, and while results have improved greatly with the completion of the turnaround plan launched in 2021, the Eastern fresh pork sector is still making losses. The devaluation of the yen, which fell to its lowest level since 1990 during the year, had a negative impact on the sector’s results.

On the upside, we benefitted from a growth in sales of chilled pork products. These value-added products are in high demand in the domestic and Asian markets, and we are looking to further develop them by leveraging the Olymel brand’s reputation and the recognized quality of local pork.

In both the hog production and fresh pork sectors, we focused this year on increasing the efficiency of our operations and the performance of our facilities. Olymel has come a long way in this regard in recent years and aims to strengthen its competitiveness and create significant benefits for all players in the chain.

In 2024, 6.3 million hogs were slaughtered, a predictable decrease of 0.8 million due to the closure of the Vallée-Jonction slaughterhouse and the decision to close breeding facilities in Western Canada in 2023.

Further processed pork

The further processed pork sector reported slightly lower results in fiscal 2024 than last year. Volumes remained stable year over year, with a significant increase in fresh sausage sales and a corresponding repositioning to our ham portfolio. Optimization measures were also made to enhance sector performance. As a result, the Saint-Jean-sur-Richelieu plant was closed during the fiscal year and its production volumes were transferred to the Trois-Rivières and Saint-Henri plants. Bacon plant operations were also reorganized with the transfer of certain production lines to the Cornwall plant.

Poultry sector

Fresh poultry

The fresh poultry sector performed well despite more difficult market conditions this year. Volumes were higher than in 2023, but selling prices declined due to higher product offerings and heightened competition.

Sector results were also affected by turkey operations that incurred a significant net loss. Lower consumption recorded in Canada and elsewhere in the world resulted in a market surplus compared to client demand.

Lastly, certain revenues associated with shares of projects carried out in partnership with Giannone are no longer included in the fresh poultry results, as this business was sold in 2023.

Further processed poultry

In further processed poultry, the profit margin as a percentage of sales increased, but lower volumes had a greater impact on total revenues, which decreased. As with further processed pork, the difficult year in the restaurant industry impacted our results.

Poultry processing operations in plants were optimized in 2024 with a more judicious relocation within our various facilities. Unfortunately, the Oakville plant, which had benefited from this optimization strategy, caught fire at the end of the year, which created significant logistical challenges for the organization.

A fertile year with several promising projects

In addition to strong financial results, Olymel made progress in all aspects of its operations, making 2024 a pivotal year in its history.

The year’s highlights include the development of the new strategic centre. Olymel began centralizing in Boucherville a large portion of its warehousing and distribution operations, which had been spread over a dozen sites. In September, we moved our head office and essential administrative activities to an adjacent building, after more than 30 years in Saint-Hyacinthe.

At the same time, we enhanced our strategic management tools. Olymel adopted a new ERP (integrated management software package) platform and laid the foundations for the adoption in 2025 of a new information and human resources management system. We also began integration of artificial intelligence with the creation of a dedicated team and the implementation of some promising pilot projects. Lastly, we also continued our cybersecurity enhancement program throughout the year.

We also made progress with several marketing initiatives. We revamped our brand portfolio and came up with a new image for Olymel, with the goal of further highlighting the high quality of our products and reflecting the evolution of our organization. We also had great success in marketing with a new line of fresh chicken under the Olymel brand sold exclusively in Walmart stores in Québec and developments in our partnerships with restaurant leaders.

Feeding our world with solidarity and responsibility

For Olymel, feeding the world with tomorrow in mind means ensuring at the same time the quality of our food, our environmental footprint, animal welfare, the health and safety of our employees and community relations.

In 2024, on top of our efforts to reduce greenhouse gases, we launched a climate impact analysis to improve value chain resilience. Also, to promote a healthier diet, we undertook to revisit the recipes of nearly 50 products to reduce saturated fat, sugar and/or sodium content, while maintaining product quality. From a social standpoint, we supported the communities in which we operate, with $1.9 million in donations in cash and products in 2024, mainly to combat food insecurity. In addition, regarding animal health, we continued to prevent and prepare for African swine fever, as the disease continued to ravage various parts of the world.

Conclusion

Fiscal 2024 was a year of significant progress and results that reflect our ability to meet challenges. Despite major transformations in our industry, we delivered some of the best financial results in our history.

We look to the future with confidence, with pride in the progress we have made, with enthusiasm for the projects that are driving us to do even better, to innovate more in methods and technologies to feed our world in the future. Our work will never be finished: we will continue to do everything we can to continuously improve for the benefit of our members, partners and communities.

The success of fiscal 2024 is a testament to the unwavering resilience and commitment of our teams. I know that the many changes in recent years have been destabilizing, sometimes trying for our employees. Together, we have got through this intense period and today, we can envision the future of an organization that creates value and is market-friendly.

Many thanks to all our employees for their dedication. I would like to thank Pascal Houle, Chief Executive Officer of Sollio Cooperative Group, and Richard Ferland, President of the Board of Directors, and all the directors, for their unwavering support.