C-store specialist the Co-op’s profits have rocketed for the full year as it hails strategic progress and “right-sizing” of business starting to pay off.
The Co-op reported that revenue for the full year to January 4, 2025, remained flat at £11.3bn as it continued to “right-size the business”.
However, profit before tax soared by £133m during the year, up from £28m last year, to hit £161m.
The Co-op credited the growth to increased operating profits, which rose from £66m to £151m, as well as improved investment returns for its funeralcare plan.
In its food business, revenue was up 1.9% to £7.4bn, while online sales rose 46% to £460m.
The retailer said it continued to benefit from its growing active membership base, which was up 22% for the year to 6.2 million members.
The average age of its members has gone down by two years, with a 66% rise in new members joining aged 25 and under.
During the year, the Co-op invested £92m in its member prices across food, insurance and legal as well as £96m in colleague pay.
In terms of outlook, it said it is on track to continue growing its membership and is focused on medium to long-term profitability growth.
Despite this, the retailer noted ongoing “external pressures and volatility” and pending cost increases as a result of the national insurance contribution hikes and cost inflation.
The retailer said it is “not immune” from the geopolitical challenges ahead but that its “strong balance sheet” enables the business to face the headwinds.
Co-op chief executive 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.
“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.”
Co-op chair Debbie White 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.”
No comments yet