Co-op profits hit £247m but warns on future impact of inflation

Co-op has seen its revenues surge £300m to £11.5bn, up from £11.2bn, for the year ended 31 December 2022.

Alongside this the company posted a pre-tax underlying profit of £247m up from £57m in 2021.

Furthermore, the retailer maintained the same underlying profit number of £100m compared with last year.

The group’s net debt also fell £587m down to £333m from £920m in 2021. This was aided by the £319m profit received from the sale of its petrol forecourt business in October.

However, Co-op has warned that its profits would take a hit in the short term as a result of inflation. Despite this the company is still confident it will have success in the long term.

Chairman Allan Leighton said: “The inflationary challenges facing most consumer-facing businesses are well known, so for our Co-op to have delivered this level of performance over the year is encouraging.

“We are, rightly, judged by our members on both the financial and social value we can create and it’s clear that we’ve delivered on both sides of this equation. The future focus on growing membership is vital for ensuring the future success of our Co-op for generations to come.”

Chief executive Shirine Khoury-Haq added: “It’s clear that our early action to significantly reduce our debt, improve our cash position, and tighten cost controls, has made a significant difference to the financial strength of our Co-op and has enabled us to look forward with confidence, despite continuing market uncertainty.

“We now have an even better foundation upon which to grow our businesses. We’re also looking to grow our membership, putting membership at the heart of our Co-op, with ambitious plans to both attract new members, and deepen relationships with our existing members.”

These results come after reports on Monday stated that chairman Allan Leighton would be stepping down next February in accordance with corporate governance guidance.