Co-op achieves profit and membership growth against external headwinds

Group revenue maintained, with significant increase in group profit and further reductions in group net debt.

Over £200m of new headwind and investment costs, with active choices to support members, colleagues, and communities with cost-of-living challenges.

Membership growth up 22% to 6.2 million (2023: 5.1 million) – on track to reach target of 8 million by 2030.

Revenue maintained at £11.3 billion as we continued to right size the business and reflecting an additional 53^rd week in the comparative year.

Underlying operating profit up by £34 million to £131 million (2023: £97 million) and profit before tax up by £133 million to £161 million (2023: £28 million), driven by increased operating profits and improved Funeralcare plan investment returns.

The Co-op maintained a strong balance sheet, with total liquidity of £820m, and net debt (excluding leases) down £27 million to £55 million – 94% reduction in the last 3 years, with £400m sustainability linked Revolving Credit Facility signed until 2029.

Long-term credit rating upgraded by Standard & Poors and there is also an improvement in Return On Capital Employed (ROCE) to 4.7% (2023: 3.4%), due to improved profit and disciplined capital management.

Debbie White, Chair of the Co-op, added, “These results show that our strategy on delivering for our member owners whilst also delivering long term financial and operational progress is working.  I’m particularly delighted we have increased our active membership by 22%.

“I’d also like to extend a thank you to each colleague for their focus and hard work in delivering these results on behalf of our members.

“We continue to focus on long term profitable growth, creating more value for all our member owners and the communities they live in.”

Commenting on the results, Shirine Khoury-Haq, Chief Executive of the Co-op, said, “Our solid business performance alongside the progress we have made in right sizing the business and delivering against our new strategy, is enabling us to create more value for our member-owners every day.

“While broader economic challenges remain, our businesses are delivering strongly against the market and I’m proud that we continue to provide support to our colleagues, members, and their communities through the continued cost of living challenges they face.

“We look to the future with confidence, supported by a strong balance sheet and a clear and compelling business strategy and remain on track to reach our goal of 8 million Co-op member owners by 2030 with a focus on growing our Co-op for the future.”