Profits soar at Co-op, driven by increasing operating profits and funeralcare
The Co-op Group saw stable profits in the year to January 4, 2024, although its pre-tax profits soared.
Sales came in at £11.3bn, the same as the previous year, which was a 53-week . When compared as a 52 week period, the 2023 turnover was £11.2bn.
The profit before tax was up by £133m to £161m, driven by increased operating profits and an improved Funeralcare plan investment returns.period.
The Manchester-based group boasts a strong balance sheet, with total liquidity of £820m, and net debt, excluding leases, down £27m to £55m, a 94% reduction in the past three years.
There is also a £400m sustainability linked Revolving Credit Facility signed until 2029.
The Co-op’s long term credit rating has been upgraded by Standard & Poors.
Group chair, Debbie White, said: “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%.
“We continue to focus on long term profitable growth, creating more value for all our member owners and the communities they live in.”
CEO, Shirine Khoury-Haq, 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.”
She added: “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 eight million Co-op member owners by 2030 with a focus on growing our Co-op for the future.”
Looking ahead, the group warned of continued wider external pressures and volatility, with broader geopolitical issues, introduction of both extended producer responsibility (EPR) charges and higher National Insurance contributions, and cost inflation.
It said that, while not immune from these pressures, its focus is on medium to long term profitability and its strong balance sheet enables it to face directly into these external headwinds, compete effectively in challenging markets, and pursue growth.
The group is on track to grow its membership to eight million by 2030.
It said it will continue to drive growth across its businesses, remaining on track to open more than 120 new stores across retail and franchise by the end of 2025.
