Co-op hails “robust” sales as it targets future growth
Co-op’s food retail business has seen its underlying operating profit increase by 11% to £154 million in the year to March 2023 as it looks forward to future growth.
This was attributed mainly to cost efficiencies, including improvements in availability, waste reduction, optimised stock-holding, and an overall reduction in the retailer’s cost-to-serve.
At £7.3 billion, its revenue was slightly down on the previous year’s £7.8 billion due to the sale of the group’s petrol forecourt business to Asda. However, revenue was up 4.3% when the impact of the sale was excluded.
During the period, the food business grew its online sales to £311 million from a previous £222 million and expanded its partnership with Just Eat to over 1,000 stores.
Across the wider Co-op group which includes B2B, life services, legal and insurance arms, revenue dropped to £11.3 billion from a previous £11.5 billion.
Meanwhile, pre-tax profit came in at £28 million compared to the prior year’s £268 million which Co-op attributed to the petrol forecourt sale. The group made an operating profit of £66 million compared to the previous year’s loss of £12 million.
Looking ahead, the group said it is confident of its strategy as it focuses on prioritising growth and increasing its membership from five million to eight million by the end of the decade.
Shirine Khoury-Haq, chief executive of Co-op, said: “Our relentless focus on strengthening our financial position has enabled us to navigate a highly turbulent external landscape, delivering increased value for our member-owners and planning for a future with confidence and with membership firmly back at the heart of our business.
“2024 marks a significant shift as we begin putting in place the building blocks for our strategic growth plans across our Co-op, with a focus on growing our existing businesses including increasing our share of the quick commerce market and expanding our presence within the life services sector.”
