Co-op reports surge in annual profit
Co-op has reported a surge in annual profit after its strategy on delivering for its members paid off.
In the year to 4 January, pre-tax profit climbed to £161 million from £28 million in the prior period, with the increase driven by a rise in operating profits and improved Funeralcare plan investment returns.
However, group revenue was flat at £11.3 billion as Co-op continued to right size its business.
In food retail, revenue edged up 1.9% to £7.4 billion as the division benefited from its £88 million investment in lowering food prices for members. It also invested £82 million in its store estate and £35 million in technology innovation.
Never Miss a Retail Update!Meanwhile, food underlying operating profit increased to £201 million from £173 million a year earlier.
During the year, Co-op grew its active membership base by 22%, which meant it had 6.2 million member owners by the end of the period.
Shirine Khoury-Haq, chief executive of the Co-op, said: “Our solid business performance alongside the progress we have made in right sizing the business and delivering against our new strategy, is enabling us to create more value for our member-owners every day.”
Co-op said it now faces over £200 million of new headwind and investment costs as it makes an active choice to support members, colleagues and local communities with cost-of-living challenges.
Khoury-Haq added: “While broader economic challenges remain, our businesses are delivering strongly against the market and I’m proud that we continue to provide support to our colleagues, members, and their communities through the continued cost of living challenges they face.”
Looking ahead, Co-op said it will continue to drive growth as it remains on track to open over 120 new stores across retail and franchise by the end of 2025.
Debbie White, Co-op chair, said: “We continue to focus on long term profitable growth, creating more value for all our member owners and the communities they live in.”
