Co-op Group delivers strong first half performance, with return to interim profit

The Co-op Group has posted strong first half results, including a return to interim profit.

The Manchester-based group revealed today that turnover rose from £5.5bn to £5.6bn, and a pre-tax loss of £33m in the six month period last year was transformed into a £58m pre-tax profit this year, helped by lower interest payments.

Group net debt has also fallen, from £97m to £42m, compared with the previous year.

Cash from operations generated £207m, more than covering increasing capital investment by 72% during the period, and in May, a £200m bond was repaid in full without requirement for refinancing.

The group also achieved 20% growth in the number of active member owners, to 5.5 million, which it said is firmly on target to reach eight million members by 2030.

Also, £130m of support was provided to colleagues, members and communities in the reporting period amid continued cost of living challenges, including investment in colleague pay (£48m), colleague discount (£18m), lower food prices and member offers (£55m) and supporting communities (£9m).

The group also outperformed the market in its three business units – food retail, business to business and life services – operating in continuing challenging sectors.

Chief executive, Shirine Khoury-Haq, 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.”

She added: “While there is much more for us to achieve, we are on track to reach our goal of eight 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.”

Debbie White, Chair of the Co-op, said: “These results demonstrate the progress we have made over the last six months.

“I’m delighted we have grown our membership by 20%, with our 5.5-million-member owners central to our plans and at the heart of our Co-op. 

“I’d also like to thank all our colleagues for their hard work and dedication, which has enabled us to deliver this improved performance.

“We continue our focus on growing our membership to create more value for our member-owners, and in turn, communities across the UK.”