Operating revenue of Canadian wholesalers rose 6.7% in 2012 from 2011, reaching C$865.3B, with wholesalers in the four western provinces accounting for 60% of total revenue gain: Statistics Canada
March 26, 2014
– The operating revenue of wholesalers rose 6.7% to $865.3 billion in 2012, following gains of 9.0% in 2010 and 7.9% in 2011.
Wholesalers in every province reported higher operating revenue in 2012. For a second consecutive year, most of the national increase in dollar terms occurred in the West. Combined, wholesalers in the four western provinces accounted for 60% of the total revenue gain in 2012.
Operating profits as a percentage of total operating revenue reached 4.3% in 2012, the highest percentage since 2008. Operating revenue increased more than total expenses. The cost of goods sold, which accounted for 86.7% of total expenses, increased by 6.8% to $718.0 billion in 2012. Other operating expenses, including labour remuneration, grew by 4.4% to $110.4 billion.
In 2012, four of the nine wholesale trade subsectors posted increases in their operating profits as a percentage of revenue, led by wholesalers in the petroleum products (up 0.7 percentage points to 1.8%) and the miscellaneous (up 0.6 percentage points to 4.1%) subsectors.
Expressed as a percentage of total operating revenue, gross margins edged down from 17.1% a year earlier to 17.0% in 2012, with five of the nine subsectors posting declines. Wholesalers of farm products posted the largest decrease in margins-to-operating-revenue ratios, down 0.8 percentage points from 2011.
On average, wholesalers turned over their inventory 9.3 times in 2012, down from 9.9 times in 2011. With the exception of 2009, when Canadian wholesalers turned over their inventory 8.8 times, the turnover rate has ranged from 9.2 to 9.9 since 2002.