Annual wholesale trade, 2014
Archived Content
Information identified as archived is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please "contact us" to request a format other than those available.
Released: 2016-06-28
In 2014, operating revenue for Canadian wholesalers was up 5.9% and reached the $1.0 trillion mark for the first time. Eight of nine subsectors posted increases.
The cost of goods sold, which represented 83.9% of total operating revenue, rose 5.6% to $859 billion in 2014. Gross margins for wholesalers (the difference between total operating revenue and the cost of goods sold) edged up from 15.9% in 2013 to 16.1% in 2014.
Total operating expenses, which include labour remuneration, were up 4.6% to $120 billion. Operating profits as a percentage of total operating revenue advanced from 4.0% in 2013 to 4.4% in 2014.
Most subsectors post gains
In dollar terms, the petroleum products subsector recorded the largest increase in operating revenue, up 4.1% to $326 billion in 2014.
In 2014, wholesalers of petroleum products accounted for the largest proportion of wholesale trade sector revenues, with 31.9% of total operating revenue, down from 32.4% in 2013.
The motor vehicles and motor vehicle parts and accessories subsector posted the second largest gain, up 11.0% to $114 billion in 2014. The main contributor to the advance among the three groups in this subsector was the motor vehicle industry, with a 10.4% increase in operating revenue. This group alone accounted for 71.6% of the gain in total operating revenue.
Wholesalers' gross margins up slightly
Expressed as a percentage of total operating revenue, gross margins rose from 15.9% in 2013 to 16.1% in 2014. Gains were posted in six of nine subsectors.
Gross margins as a percentage of operating revenue vary widely among the wholesale trade subsectors, depending on the cost structure of the different types of wholesalers. Among wholesale merchants in 2014, wholesalers of petroleum products (3.7%) had the lowest margin. The highest margin among wholesale merchants was in the personal and household goods subsector (26.7%), followed by the machinery, equipment and supplies subsector (25.8%).
Operating profits up
Seven of nine wholesale trade subsectors posted increases in their operating profits as a percentage of operating revenue in 2014.
Among wholesale merchants, wholesalers in the farm products subsector posted the largest gains in operating profits as a percentage of revenue, advancing from 2.2% in 2013 to 4.8% in 2014.
In 2014, wholesalers of food, beverage and tobacco reported operating profits at 4.5%, down from 4.8% in 2013. This was the largest decrease among wholesale merchants. An increase in operating revenue (+4.4%) was offset by a larger gain in the cost of goods sold (+5.9%).
Operating revenue up in all provinces
All provinces reported growth in operating revenue in 2014. In dollars terms, the rise in operating revenue in Ontario and Alberta represented 66.6% of the total increase.
In 2014, Ontario was the main source of operating revenue growth in the wholesale trade sector in Canada, with an increase of 6.9% to $344 billion. The gain in Ontario was mostly attributable to the motor vehicles and motor vehicle parts and accessories subsector (+14.0%) and the machinery, equipment and supplies subsector (+6.2%).
The cost of goods sold by wholesalers in Ontario rose 8.0% in 2014, while operating expenses grew 1.9%. These increases offset the gains in operating revenue, leaving operating profits as a percentage of revenue for Ontario wholesalers unchanged at 5.3%.
Operating revenue for wholesalers in Alberta increased 4.8% to $338 billion in 2014. The rise in operating revenue was mainly attributable to the petroleum products subsector (+3.0%), which accounted for approximately 73% of wholesalers' operating revenue in Alberta. Wholesalers in the food products (+14.4%) and other products (+27.0%) subsectors also reported strong increases.
The cost of goods sold by wholesalers in Alberta rose 4.2%, while operating expenses increased 4.0%. These gains were below the rate of growth for operating revenue, helping to push operating profits as a percentage of revenue for Alberta wholesalers from 2.7% in 2013 to 3.2% in 2014.
Note to readers
Data for 2013 have been revised.
The gross margin is obtained by subtracting the cost of goods sold from total operating revenue.
The operating profit is obtained by subtracting total operating expenses plus the cost of goods sold from total operating revenue.
Contact information
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; STATCAN.infostats-infostats.STATCAN@canada.ca) or Media Relations (613-951-4636; STATCAN.mediahotline-ligneinfomedias.STATCAN@canada.ca).
- Date modified: