The Co-op group has said it is “reinvigorated” and “in a much stronger position” after reporting a “robust sales performance” for its last fiscal year.
For the 53 weeks to 6 January 2024, sales rose by 4.7% on a comparable basis to £11.3bn excl. fuel forecourt sales (-1.7% on a reported basis). Underlying operating profit jumped 16.9% to £97m, although underlying EBITDA edged down 0.1% to £468m.
The Co-op said that all its businesses saw revenues rise on an underlying basis for the year. The Food Retail unit reported a 4.3% rise to £7.3bn on an underlying basis, with underlying profit up 11% to £154m. Online sales jumped up 40% to £311m.
Meanwhile, the B2B Wholesale unit saw revenue grow by 2.9% to £1.4bn, although profits fell by 38% to £13.2m due to continued investments. Franchise revenue was up 3.8% as it added three such new stores and trialled a new format at three petrol stations.
During the year, the Co-op added more than 1 million new members (a 14% year-on-year jump), taking its active base to more than 5 million members. Interestingly, the number of active members under the age of 25 rose by 52% during the year, and now account for around 7% of its total membership. Co-op said it aims to “substantially increase the number of member-owners to 8 million by 2030”.
Shirine Khoury-Haq, Chief Executive of the 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. Over the last two years, our net-debt has reduced by 90% from over £900m, to £82m today. Whilst markets remain challenging, we are in firmly in control of our Co-op and our destiny.”
Debbie White, Chair of the Co-op, added: “The dedication and hard work of our 56,000 colleagues delivered both a financially strengthened Co-op, which ended the year in a much stronger position than the previous year, as well as a reinvigorated Co-op, which is well-placed to continue to grow membership and create more value for its member-owners. This includes expanding financial rewards, fostering more opportunities for engagement, and facilitating meaningful contributions to communities across the UK.”
NAM Implications:
- Profit margin less than 1%.
- i.e. Don’t expect any investment in price cuts.
- Stand-out item: number of active members under the age of 25 up 52%.
- Healthiest stat: net debt down by ‘90% from over £900m, to £82m today’
- Worth a reassessment of your Co-op trade strategy?
