Supply chain disruption and the fallout from the Covid-19 pandemic have seen pre-tax profits at the Co-op Group drop £70m to £57m (2021: £127m), although the figure is up from the pre-pandemic figure of £24m for 2019.
Group chair Allan Leighton said: “The economic headwinds look stark and will be tricky to navigate, but through our continued planned strategic investments, our Co-op is well placed to ride out the storm and prosper beyond.”
Underlying operating profit in 2021 was £100m (2020: £235m, 2019: £173m) and the Group reported an underlying loss before tax of £32m compared to a £100m profit in 2020 (2019: £35m profit).
A tax charge of £25m meant the Group recorded an overall profit of £32m from continuing operations in 2021 (2020: £72m and 2019: £49m).
Net debt stands at £920m, (2019: £695m, 2020: £550m) “reflecting various factors, including increased capital expenditure, investment in stock during supply chain disruption, negative cash flow timings and furlough repayment”. The Group adds that net debt “has improved significantly since year-end”.
The figures, in the Group’s annual report for the year ended 1 January 2022, come as the UK faces a tough economic outlook, hit by the disruptions of Covid-19 and the Ukraine conflict and a worsening cost-of-living crisis.
‘The economic headwinds look stark and will be tricky to navigate but through our continued planned strategic investments our Co-op is well placed to ride out the storm’
Read more at Co-op News
Image: https://www.flickr.com/photos/theco-operative/27138835080
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