The Co-op has reported a huge jump in profit for 2024 ahead of potential ‘trolley wars’ in the grocery sector.
Group revenue was broadly stable year on year, ticking up by 0.2 per cent to £11.3bn, while underlying profit rose by 35 per cent to £131m.
Operating profit more than doubled, from £66m to £151m, while profit before tax rose nearly six-fold, from £28m to £161m.
The higher profit was driven by increased operating profits and improved Funeralcare plan investment returns, the Co-op said.
The Co-op operates in a number of areas including food retail (through convenience stores), wholesale (via Nisa), funeral care, legal services and insurance.
The number of active Co-op members, who together own the business, grew 22 per cent to 6.2m, from 5.1m in 2023 and “on track” to reach 8m by 2030.
“These results show that our strategy on delivering for our member owners whilst also delivering long term financial and operational progress is working,” Co-op chair Debbie White said.
“I’m particularly delighted we have increased our active membership by 22 per cent.”
“We continue to focus on long term profitable growth, creating more value for all our member owners and the communities they live in,” White added.
Co-op is the seventh-biggest supermarket in the UK by market share, according to Kantar, but hasn’t been growing its market share in the last few years.
The move to lower prices was a bid to attract value-seeking consumers in a tough economic environment characterised by low brand loyalty.
But with all major supermarkets – including the recently-revitalised leadership of Asda – set to lower prices to attract customers, analysts have warned that ‘trolley wars’ are close to breaking out in the grocery sector.
Shirine Khoury-Haq, chief executive of the Co-op, said: “While broader economic challenges remain, our businesses are delivering strongly against the market and I’m proud that we continue to provide support to our colleagues, members, and their communities through the continued cost of living challenges they face.
“We look to the future with confidence, supported by a strong balance sheet and a clear and compelling business strategy and remain on track to reach our goal of eight million Co-op member owners by 2030 with a focus on growing our Co-op for the future.”