The Co-op has reported a fall in profits and sales in the full year ending 2023 as it faced challenges due to increased levels of shoplifting and inflationary headwinds.
For the 53 weeks ending March 2023, the grocer’s profit before tax fell to £28m down from £268m in 2022, while underlying EBITDA was “broadly flat” at £468m down from £473m reported at the same time last year.
Group sales decreased £11.3bn as compared to £11.5bn in 2022, but increased £500m when excluding the impact of its petrol forecourt sale.
The grocer said its performance “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”.
The Co-op also reduced its net debt to £82m, down from £322m in 2022, as part of ongoing progress in strengthening its balance sheet.
Looking ahead, the Co-op said it is creating three core business areas: food retail, business-to-business and life services, which will enable it “to more easily capture growth in our existing markets and fully realise adjacent market opportunities”.
Chief executive Shirine Khoury-Haq said: “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.
“Over the last two years, our net debt has reduced by 90% from over £900m to £82m today. While markets remain challenging, we are firmly in control of our Co-op and our destiny.
“Our success in attracting new members has seen us surpass our expectations with new sign-ups last year higher than the previous two years combined. This momentum has continued into 2024 as we now stand at 5.2 million active member-owners, and we expect to continue this journey and substantially increase the number of member-owners to 8 million by 2030.
“We look forward with confidence as we focus on growing our business for our member-owners, while simultaneously enhancing the value we deliver to them and their communities.
“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.”
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