The Co-op has reported a strengthened financial performance with increases in revenue, operating profit, profit before tax and further reductions in net debt in the first half of 2024.
The retailer has posted a 20% growth in number of active member owners to 5.5 million (H1 2023: 4.6 million) and said it is on target to reach 8 million members by 2030.
Financial Highlights
| Reported Performance | |||
| HY 2024
| HY 2023
| Variance | |
| Group revenue* | £5.6bn | £5.5bn | £0.1bn |
| Group operating profit | £35m | £3m | £32m |
| Group profit /(loss) before tax (PBT) | £58m | (£33m) | £91m |
| Underlying operating profit | £47m | £43m | £4m |
| Underlying profit / (loss) before tax (PBT) | £3m | (£9m) | £12m |
| Net cash from operating activities | £207m | £350m | (£143m) |
| Group net debt** | £42m | £97m | £55m |
*Our comparative figures have been restated to align to the accounting treatment adopted in our 2023 Annual Report and Accounts on Federal sales.
**Group net debt excludes leases and accrued interest on debt held at amortised cost.
- Group revenue up 1.5% to £5.6 billion, notwithstanding challenging external headwinds and contraction in the wider food retail convenience market. Notable sales increases, with our largest business unit Food up by 3.2% and our highest growth unit Legal Services up by 35%.
- Underlying operating profit up by £4 million to £47 million (H1 2023: £43 million), with membership and q-commerce growth offsetting market and operating cost inflation headwinds. Material earnings investments in H1 across member pricing, colleague, and communities support.
- Group PBT returned to profit – up by £91million to £58 million (H1 2023: £33 million loss), driven by lower interest payments supporting underlying PBT improvement, and reduced non-underlying charges and strong Funeralcare pre planned investment returns driving further improvements in statutory profit.
- Strong balance sheet continues, with further reduction in net debt to £42 million – a decrease of £55 million (H1 2023: £97 million) versus the same period last year, and 95% lower than FY21.
- Cash from operations generated £207 million in H1, more than covering increasing our capital investment by 72% during the period.
- May 2024 £200 million bond repaid in full without requirement for refinancing.
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.
“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.”
Debbie White, chair of the Co-op, added: “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.”
