Skip to content
Search
AI Powered
Latest Stories

Co-op delivers robust revenue and profits growth; Nisa profits dip

Co-op delivers robust revenue and profits growth; Nisa profits dip
Photo: iStock
Getty Images

Co-op reported strong underlying financial performance in its 2023 fiscal, with improvements in underlying operating profit, net cash, and further reductions in net debt, which has reduced by £827m in the last two years.

Excluding the impact of the petrol forecourt sale, revenue increased 4.7 per cent or £0.5 billion. All business units delivered underlying revenue increases in the year.


Underlying operating profit increased 17 per cent, all the more impressive given prior year includes earnings from the petrol forecourt business disposed of in 2022.

EBITDA remained broadly flat at £468 million (2022: £473 million), a result which the group said reflects the underlying strength of the business, given the inflationary headwinds, and with no earnings coming from the petrol forecourt business following its strategic disposal.

“Our relentless focus on strengthening our financial position has enabled us to navigate a highly turbulent external landscape, delivering increased value for our member-owners and planning for a future with confidence and with membership firmly back at the heart of our business,” Shirine Khoury-Haq, chief executive of the Co-op, said.

“Over the last two years, our net-debt has reduced by 90% from over £900 million, to £82 million today. Whilst markets remain challenging, we are in firmly in control of our Co-op and our destiny.”

The group's wholesale business, Nisa, saw revenue growing by 2.9 per cent to £1.4 billion (2022: £1.4 billion), but profitability decreased to £13.2 million (2022: £21.2 million), which the group attributed to the investments in enhancing the proposition for retailers to ensure their ongoing competitiveness. The group added 425 stores in 2023 and aim to gain a further 400 in 2024.

Franchise revenue increased to £56 million (2022: £54 million), with the addition of three new franchise stores and a new trial format in three petrol stations. Co-op said it has a strong pipeline of launches planned for 2024, including its first stores located in NHS hospitals.

The group surpassed expectations with substantial membership growth, now reaching 5 million active member-owners, and supported colleagues, members and communities through cost-of-living crisis, with £70m in 2023, annualised to £90m investment in lowering food prices and improved member-owner offers.

The group said it is well placed to drive growth with clear focus on increasing the number of member owners from 5 million to 8 million, by 2030, as well as targeting additional growth through its three core business areas of Food Retail, Business to Business (B2B) and Life Services.

“2024 marks a significant shift as we begin putting in place the building blocks for our strategic growth plans across our Co-op, with a focus on growing our existing businesses including increasing our share of the quick commerce market and expanding our presence within the life services sector,” Khoury-Haq added.

Food Retail

Food revenue was marginally down at £7.3 billion (2022: £7.8 billion), driven primarily by the sale of the petrol forecourt business. Revenue was up 4.3 per cent or £0.3 billion (2022 £7.0 billion), excluding the impact of the petrol forecourt sale.

Food underlying operating profit increased 11 per cent year-on-year to £154 million (2022: £139 million), attributable to enhancements in cost efficiencies, including improvements in availability, waste reduction, optimised stock-holding, and overall reduction in our cost-to-serve.

Online sales continued to grow, reaching £311 million (2022: £222million). The retailer secured the top position in the quick convenience market in the second half of the year (Neilsen), expanded its partnership with Just Eat to over 1,000 stores, and aim to grow from 23 percent currently to capture 30 per cent of the overall quick convenience market share in the next 4 years.

More for you

Glenshire Group appoints Dan Arrandale as property director

Glenshire Group appoints Dan Arrandale as property director

Scottish business conglomerate Glenshire Group has hired Daniel Arrandale as its new Property Director.

Starting in the newly created role last week, Arrandale brings a wealth of industry experience to the business, including his most recent position as Acquisitions Manager for Asda and his previous position as Development Manager at EG Group.

Keep ReadingShow less
Carlsberg Zero
Competition watchdog begins Carlsberg, Britvic merger probe
Competition watchdog begins Carlsberg, Britvic merger probe

Carlsberg shifts marketing focus as drinkers choose cheaper beer

Brewer Carlsberg is shifting some of its marketing focus to cheaper brands, it said on Thursday (31), as consumers in major markets bought cheaper beer and in reduced quantities.

The maker of Kronenbourg 1664, Tuborg and Somersby said beer sales volumes fell by 1.3 per cent in the third quarter, noting declines in China, France and the United Kingdom. Premium sales fell 0.5 per cent in the quarter."In Western Europe, there's no doubt that the average consumer is holding back," CEO Jacob Aarup-Andersen told Reuters.

Keep ReadingShow less
sustainability, zero waste store, refil lzone
Photo: iStock
Photo: iStock

Consumers value ethics though 'sustainability needs to be competitively priced'

Consumers now want a greater commitment from retailers in cutting food waste, refilling stations, sustainable packaging, and partnering with social purpose organisations, states a recent research, which also highlights that a good majority (69 per cent) of younger consumers are more likely to shop with what they see as socially responsible retailers though price sensitivity still plays a crucial role.

According to the findings, published in Vypr’s Consumer Horizon Report, reducing food waste is the most important factor for the majority of UK consumers (29 per cent), especially for Gen Z women aged 18-24 (38 per cent). More than a third (37 per cent) of men aged 18-24 said they needed food storage advice. A similar number of women aged 18-24 (33 per cent) want meal kits with the exact amount of ingredients included for them to cut down on food waste.

Keep ReadingShow less
Sugro-Wn-News.png
Sugro UK
Sugro UK

Sugro UK unveils new B2B digital enhancements to empower members, retailers

Sugro UK, the number one buying and marketing buying group*, in partnership with b2b.store, is thrilled to announce a further expansion of its existing E-Loyalty scheme programme, which has proven to be very popular with its members and retailers, by introducing E-Loyalty Extra Compliance and Execution scheme as well as E-Coupons.

The E-Loyalty Extra is aimed to boost compliance and execution at retail store level to drive new product launches, core range compliance, some exciting fixture trials with its supply partners and more! It will be available to all member owned and member affiliated retail stores within the group.

Keep ReadingShow less
Paulig acquires Panesar Foods

iStock image

Paulig acquires Panesar Foods

Expanding its footprint in the World Foods category, Paulig has acquired Panesar Foods, a prominent UK-based producer of sauces and condiments.

Founded in 1992 and headquartered in Tipton, Panesar Foods is a family-owned business with three production facilities, employing 308 staff and achieving a turnover of £59 million in the 2023 fiscal year.

Keep ReadingShow less