OTC:GGROU
Golden Growers Cooperative
A diversified agricultural cooperative providing grain processing and distribution services with substantial joint venture holdings.
Key Metrics
Investment Thesis
Bull Case
The company's substantial holdings in joint ventures contribute over $6M to annual earnings, providing a cushion against volatile agricultural commodity pricing.
Bear Case
Core operating expenses exceeded revenue significantly in the latest period, and the sharp decline in total revenue over the last three years suggests deteriorating business fundamentals.
About Golden Growers Cooperative
Golden Growers Cooperative (GGROU) is a diversified agricultural cooperative operating primarily in the North American grain and food processing markets. The company generates revenue through the acquisition, processing, and distribution of various crops while maintaining significant investments in joint ventures to optimize supply chain efficiency. Its financial structure reflects a heavy reliance on operational scaling within the volatile commodity agriculture sector.
Analysis
Management Discussion
While the company reported a net profit of $5.6M, this figure is heavily influenced by non-operating income and joint venture profits rather than core operations which posted a gross loss.
Industry Overview
The agricultural cooperative sector is characterized by high volatility driven by weather patterns, global supply chain disruptions, and fluctuating commodity prices that directly impact gross margins.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $107.4M | $88.0M | $62.0M |
| Cost of Revenue | $107.5M | $88.3M | $62.0M |
| Gross Profit | $-42.0K | $-259.0K | $-35.0K |
| Operating Expenses | $-6.2M | $-5.5M | $-5.6M |
| Operating Income | $6.2M | $5.2M | $5.6M |
| G&A | $537.0K | $615.0K | $608.0K |
| Other OpEx | $-6.8M | $-6.1M | $-6.2M |
| Non-Operating Income | $0 | $121.0K | $0 |
| Pre-Tax Income | $6.2M | $5.3M | $5.6M |
| Income Tax | $0 | $0 | $0 |
| Continuing Ops | $6.2M | $5.3M | $5.6M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $6.7M | $5.3M | $5.6M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $6.7M | $5.3M | $5.6M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $7.2M | $7.0M | $8.9M |
| Cash & Equivalents | $2.1M | $2.1M | $1.3M |
| Marketable Securities | $4.7M | $4.5M | $7.3M |
| Accounts Receivable | — | $220.0K | $224.0K |
| Other Current Assets | $308.0K | $98.0K | $74.0K |
| Long-Term Assets | $20.7M | $19.9M | $16.0M |
| Other LT Assets | $2.4M | $2.8M | $379.0K |
| Total Assets | $27.9M | $26.8M | $24.9M |
| Current Liabilities | $205.0K | $421.0K | $204.0K |
| Other Current Liab | $0 | $0 | $0 |
| AOCI | $-267.0K | $-33.0K | $36.0K |
| Total L&E | $27.9M | $26.8M | $24.9M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $6.7M | $5.3M | — |
| Non-Cash Adjustments | $-7.1M | $-5.4M | — |
| Working Capital Changes | $53.0K | $-226.0K | — |
| Cash from Operations | $-410.0K | $-281.0K | $-396.0K |
| Cash from Investing | $7.5M | $7.0M | $7.4M |
| Cash from Financing | $-6.5M | $-6.8M | $-7.7M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $551.0K | $-49.0K | $-790.0K |
| Beginning Cash | $1.6M | $2.1M | $2.1M |
| Ending Cash | $2.1M | $2.1M | $1.3M |
Frequently Asked Questions
How does Golden Growers Cooperative make money?
Core revenue is derived from the acquisition and processing of agricultural commodities, supported by significant equity earnings from affiliated joint ventures in the supply chain.
What are the main risks for GGROU?
Significant year-over-year revenue contraction from $107.4M to $62.0M indicates potential market share loss or pricing pressure.
What is GGROU's competitive advantage?
Strong balance sheet with over $16M in long-term assets and a diverse portfolio of joint venture investments that provide stable non-operating income streams.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.