Australia’s top 100 co-operative and mutual businesses posted a record performance in the 2023 financial year, defying domestic and international headwinds to grow total revenue by 16.1% to AU$43.2bn.
This growth came despite the challenging economic backdrop, says latest National Mutual Economy (NME) report from Australia’s Business Council of Co-operatives and Mutuals (BCCM).
It was particularly evident across the health insurance, agribusiness and motoring services sectors, as organisations saw profitability return after several years affected by the Covid-19 pandemic. The 100 saw a combined net profit of $1.83bn, more than double the previous year’s $712m. However, those operating in financial services were hit by the higher interest rate environment which dampened consumer borrowing.
BCCM CEO Melina Morrison said such a strong financial performance during a period of economic instability demonstrated the resilience of the co-op and mutual sector and underlined the competitive advantages of its business purpose.
“The fact that revenue continues to grow, despite volatile economic circumstances for those who sell their goods overseas, or in competitive markets, shows co-ops and mutuals proudly hold their own year in, year out, when the spotlight is focused on better known but not necessarily more successful listed companies,” she said.
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“The NME report is a valuable snapshot of the diverse industry and commercial success of BCCM members who accept the need to make a profit for sustainability and growth but place more value in the provision of services to their customers who are also their owner members.”
The Top 100 list features some of Australia’s biggest unlisted companies including West Australian grain handler CBH, health insurers HCF and HBF, motoring groups NRMA, RACQ and RAA as well as dairy producer Norco.
CBH held onto its spot as the largest member-owned business, with a turnover of $6.19bn, followed by HCF ($3.9bn), automotive group Capricorn Society ($3.4bn) and Queensland’s RACQ ($2.39bn).
Morrison added: “In periods of high inflation, co-ops and mutuals are better able to counter headwinds because they keep their operating costs lean and do what they can to reinvest in their businesses and people. Time and time again we have seen co-ops and mutuals doing the heavy lifting in our economy by ensuring Australians have access to the services and products they need, regardless of where they live, whether that is important food staples, affordable housing, or banking services.”
She said BCCS would continue to work with the government on an enabling operating environment for co-ops and mutuals to ensure they can continue to participate in an ever more competitive business landscape – and highlighted Fonterra’s recent decision to sell its Australian dairy assets shows the important role that co-operatives play in ensuring food security. The move leaves Norco as Australia’s only large producer-owned dairy organisation.
“Co-ops and mutuals have shown that they can be globally competitive while ensuring profits and values remain in the domestic agriculture sector as well as shoring up supply chains,” said Morrison.
The report also shows that Australia’s co-ops and mutuals had combined active memberships of 34.7 million during the 2023 financial year, up from a previous 33.3 million, despite the the number of co-ops and mutuals falling slightly to 1,819 (from 1,848) – partly reflecting merger activity within the sector.
“It is notable that at a time when households are feeling the pressure, membership of co-ops and mutuals continued to grow, an endorsement of the value they deliver in good times and bad,” added Morrison.
Jobs growth in the sector was also strong, with co-operatives and mutuals employing 89,000 people, up from 76,000 in the previous year.
Download the full National Mutual Economy (NME)) report here.
