Food revenue and profits rise as Co-op invests in staff and stores, latest financial results reveal
The Co-op Group has reported a stronger financial performance in its half-year (H1 2024) results, with increases in total revenue and operating profit.
Group revenue (which includes its convenience retail, wholesale, insurance and funeral businesses) for H1 2024 grew by £0.1bn to £5.6bn, while group operating profit soared to £35m – up from £3m in 2023, according to the published results.
Within its grocery retail division, food revenue for the group rose by 3.2 per cent to £3.7bn (up from 3.6bn the prior year period), with strong sales across both food stores and online, the Co-op said.
Meanwhile, food underlying operating profit increased 10 per cent to £85m, inclusive of absorbing £39m in colleague pay increases and some £80m investment in its core food estate.
The Co-op group’s positive food retail results, which outperformed UK convenience market level sales growth by 7.4 per cent, came in spite of a 19 per cent rise in so called “leakage costs” from theft and fraud at £39.5m.
Commenting on the results, Shirine Khoury-Haq, chief executive of the Co-op, said: “We have delivered a strong performance for the first six months of this year as our strategy starts to gain real momentum.
“Although the external environment remains challenging, it is testament to the underlying strength of our Co-op that we have outperformed in all our markets while significantly increasing our investments in our colleagues, pricing and in the growth of our businesses.”
Looking ahead, Co-op announced plans to open 120 new stores across retail and franchise by the end of 2025 in a bid to reach more members with its food offer. This is alongside its strategy to increase its active member-owners to 8m by 2030.
Khoury-Haq added: “While there is much more for us to achieve, we are on track to reach our goal of 8 million Co-op member owners by 2030. This confidence is supported by a strong balance sheet, a clear business strategy, a compelling vision, and 55,000 amazing Co-op colleagues who are central to our achievements over the last six months.”
