Co-op’s revenue ticks down but group looks forward to ‘golden era’ of growth
The Co-op board said it was confident in the group’s outlook for the year as it steamed ahead with plans to build its membership base to 8m by the end of the decade.
According to its full-year update, published this morning, the funeral care to supermarket chain made £11.3bn in revenue in 2023, down just £0.2bn from the previous year.
Profit before tax was £28m, down from £268m reported for 2022. However, the group attributed this variance to the sale of its petrol forecourt business to Asda.
At its grocery chain, food underlying operating profit increased 11 per cent year-on-year to £154m, driven by cost efficiencies, including improvements in availability, waste reduction, optimised stock-holding, and overall reduction in cost-to-serve.
Revenue at its funeral care business increased by £6m, while insurance revenue increased by £5m to £29m.
Overall, underlying operating profit increased by £14m to £97m.
Earlier this year, the Co-op revealed plans to grow its membership to eight million by the end of the decade as it eyes a “golden era of co-operation”.
As part of the growth, the group’s food arm is planning to acquire new stores, more than double the number of new franchise locations, open 400 new Nisa shops and accelerate its share in the quick commerce market to over 30 per cent.
Shirine Khoury-Haq, chief executive of the Co-op, said “I’d like to thank all our exceptional colleagues, who have been instrumental in our success over the last year.
“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.
She added: “Over the last two years, our net-debt has reduced by 90 per cent from over £900m , to £82 million today. Whilst markets remain challenging, we are in firmly in control of our Co-op and our destiny.