Co-op swings to a loss as full impact of cyber-attack revealed

For the six months to July 5, 2025, Co-op reported a loss before tax of £50m, compared to a £58m profit before tax the previous year. The retailer also reported a £56m operating loss, and a 2.1% dip in revenues to over £5.4bn.

The convenience chain had underlying operating losses of £32m, underlying loss before tax of £75m, and deepening net debts.

In terms of the effects of the cyber attack itself on the first half, Co-op said it had an £80m impact on profits and a £206m hit on revenues.

Co-op said while it expected the impact of the cyber attack to be felt predominantly in the first half of the year, it did anticipate a “reduced impact” in the second half as well – although “longer-term, offsetting mitigations are underway”.

Along with the impacts on profitability and trading from the cyber attack, the Co-op said it also “experienced expected and significant cost headwinds” in the period, including increases in Real Living Wage and National Insurance as well as the new Extended Producer Responsibility charges.

Co-op said £800m liquidity “helped us navigate external pressures while maintaining focus on long-term ambitions”. During the period, the retailer reached a £350m lending agreement with six major banks and agreed a new £400m sustainability-linked revolving credit facility, which it has yet to tap.

Group chief executive Shirine Khoury-Haq said: “Over the past three years, we’ve built a stronger and more resilient Co-op – one that’s better able to navigate the headwinds that all businesses are facing.

“When we experienced a significant cyber attack, that financial strength allowed us to respond as a member-owned organisation. I’m very proud of how we reacted: we kept trading, prioritised colleagues and vulnerable communities, and launched a partnership with The Hacking Games to tackle youth disenfranchisement – the root of many cyber threats.

“The cyber attack highlighted many of our strengths. But more importantly, it also highlighted areas we need to focus on – particularly in our Food business. We’ve already started on this journey, refining our member and customer proposition, making structural changes to our business and setting our Co-op up for long-term success.”

Chair Debbie White added: “The first half of 2025 brought significant challenges, most notably from a malicious cyber attack. Our balance sheet strength and the magnificent response of our 53,000 colleagues enabled us to maintain vital services for our members and their communities. We must now build our Co-op back better and stronger to meet the challenges and opportunities that lie ahead.”