Co-op grows full year revenue
Co-op‘s food business grew its revenue to £7.81 billion in the 12 months to 31 December 2022 from £7.67 billion in the prior year.
During the period, the business benefited from the continued expansion of its online business where revenues increased by 24% to £222 million. Co-op said online delivery services are now available in more than 1,800 individual food stores and will be able to reach 81% of the UK population before year end.
Meanwhile wholesale revenue rose by £53 million to £1.44 billion.
The number of transactions per week also increased with growth of 5% to 16.4 million. In addition, Nisa’s sales of Co-op branded products grew by 12.5% to £199 million and now represent 20% of total sales, excluding tobacco.
The business also benefited from cost cutting measures, including reduced energy consumption in stores and tight control of spending.
Across the wider Co-op group which also includes funeral care, insurance and legal divisions, revenue increased by £0.3 billion to £11.5 billion while underlying operating profit came in at £100 million, the same as the prior year. However, EBIDTA fell by £15 million to £490 million in the period.
Shirine Khoury-Haq, chief executive of Co-op, said: “It’s clear that our early action to significantly reduce our debt, improve our cash position, and tighten cost controls, has made a significant difference to the financial strength of our Co-op and has enabled us to look forward with confidence, despite continuing market uncertainty.
“We now have an even better foundation upon which to grow our businesses. We’re also looking to grow our membership, putting membership at the heart of our Co-op, with ambitious plans to both attract new members, and deepen relationships with our existing members.”
Allan Leighton, chair of Co-op, added: “The inflationary challenges facing most consumer-facing businesses are well known, so for our Co-op to have delivered this level of performance over the year is encouraging.
“We are, rightly, judged by our members on both the financial and social value we can create and it’s clear that we’ve delivered on both sides of this equation. The future focus on growing membership is vital for ensuring the future success of our Co-op for generations to come.”
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