Co-op warns supply chain issues will impact full year profits
The Co-op has warned that supply chain issues and ongoing Covid-19 related costs will have an impact on its full year profitability as it announced its half year results today.
In the 26 weeks to 3 July, the Co-op’s food business saw sales excluding fuel fall by 2.8% to £3.6 billion compared to the same period last year. However, sales were up 6.5% versus the same time in 2019.
In a statement, the Co-op said it its online services were made available in 1,000 more food stores in 350 locations in the six month period, which means they now reach 52% of the UK population. In addition, total online food sales were around five times more than those in the first half of 2020.
Meanwhile, wholesale revenue dropped by 14% to £688 million as the retailer’s contract with McColl’s ended. However, Nisa saw an increase of more than 11% on sales on a two year like-for-like basis.
Steve Murrells, chief executive of the Co-op, said: “Despite the challenges that the pandemic has presented to us, we have adapted to become more efficient and agile, which has allowed us to continue to feed and care for the nation throughout the crisis. Whilst our commercial performance has been impacted by Covid-19 and Brexit headwinds, we have responded magnificently to support our colleagues, members, customers and communities throughout.”
