The Co-op has made a significant turnaround in its financial performance for the first half of 2024. Pre-tax profits soared to £58 million, a stark contrast to the £33 million loss experienced during the same period last year. Despite a tough market climate, the company’s strategic initiatives have started to bear fruit.
The Co-op’s financial health has seen a notable upswing. Pre-tax profits rose to £58 million in the first half of 2024, from a £33 million loss the previous year. This change is mainly attributed to reduced costs and lowered interest payments. Additionally, the group’s revenue increased by 1.5%, reaching £5.6 billion from £5.5 billion.
The Co-op has made substantial progress in reducing its net debt, which decreased by £55 million, from £97 million to £42 million. This represents an impressive 95% reduction since 2021, underscoring the company’s commitment to improving its financial position.
In the first half of the year, the company provided £130 million of support to colleagues, members, and communities. This support included £48 million for colleague pay, £18 million for colleague discounts, £55 million for lower food prices and member offers, and £9 million for community support.
CEO Shirine Khoury-Haq attributed the strong performance to the company’s clear business strategy and its investment in colleagues, pricing, and business growth. She stated, ‘We have delivered a strong performance for the first six months of this year as our strategy starts to gain real momentum.’
Furthermore, the Co-op allocated £55 million towards lowering food prices and member offers, aiming to provide better value for its members and customers. An additional £9 million was dedicated to community support, reflecting the company’s ongoing commitment to social responsibility.
Shirine Khoury-Haq expressed confidence in the company’s direction, stating, ‘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, and 55,000 amazing Co-op colleagues who are central to our achievements over the last six months.’
In summary, the Co-op has demonstrated a robust performance despite navigating a challenging market environment. The strategic focus on reducing costs and investing in key areas has paid off, resulting in significant profit growth and debt reduction. The company’s future looks promising as it continues to expand its membership and uphold its commitment to colleagues and communities.
