Co-op’s Underlying Strength Allows The Group To Navigate External Pressures

25 September 2025

Results for six months ended 05 July 2025

• Maintained strong balance sheet with net debt at £43 million, reduced from nearly £1 billion in 2021.
• Solid financial position enabled Co-op to face into rising headwinds and handle a significant cyber attack, maintaining crucial services to its members and local communities across the UK.
• Life Services business area recovered sales ahead of our expectations; slower recovery in challenging grocery retail market.
• Focus on building back stronger, with strategic plans accelerated in H2, including launch of new Group Commercial & Logistics Division and 30 new store openings.

First half revenue

First half cyber attack and impact

When Co-op was targeted by a sophisticated cyber attack, we acted quickly and decisively to temporarily shut down a number of systems to contain the threat. This led to operational disruption, with the estimated H1 impact presented above (reflected in our reported figures) and a reduced impact expected in H2. Co-op responded to this challenge as a member-owned business:

• Regularly communicating with members, colleagues, customers, suppliers and partners.
• Keeping essential services running, such as funerals, and prioritising stock to rural ‘lifeline’ stores.
• Working openly with the National Crime Agency, National Cyber Security Centre and our regulators.
• Sharing our experience publicly with broadcast interviews and through a Parliamentary Committee.
• Partnering with The Hacking Games to address root causes of cyber crime.
• Thanking members for their patience and support with a £10 discount on a £40 shop.
• Supporting independent co-op societies and franchise partners to minimise disruption to them.

Reported Figures

• Profitability impacted by trading disruption and additional costs from the cyber attack.
• Additionally experienced expected and significant cost headwinds, including Real Living Wage and National Insurance increases and new Extended Producer Responsibility charges.
• The most significant effects of these headwinds have been felt in H1; longer-term, offsetting mitigations are underway.
• Strong liquidity of £800m helped us navigate external pressures while maintaining focus on long-term ambitions.
• Net debt excluding leases remains low at £43m; this stood at £920m in 2021 and we continue to improve our position.
• £350m lending agreement agreed with six major banks, further increasing financial stability, with all debt maturities now covered to 2030 with a steadily reducing cost of debt.
• £400 million sustainability-linked revolving credit facility remains undrawn.

Commenting on the results, Debbie White, Chair of the Co-op, said:

"The first half of 2025 brought significant challenges, most notably from a malicious cyber attack. Our balance sheet strength and the magnificent response of our 53,000 colleagues enabled us to maintain vital services for our members and their communities. We must now build our Co-op back better and stronger to meet the challenges and opportunities that lie ahead."

Chief Executive, Shirine Khoury-Haq, added:

“Over the past three years, we’ve built a stronger and more resilient Co-op – one that’s better able to navigate the headwinds that all businesses are facing.

“When we experienced a significant cyber attack, that financial strength allowed us to respond as a member-owned organisation. I’m very proud of how we reacted: we kept trading, prioritised colleagues and vulnerable communities, and launched a partnership with The Hacking Games to tackle youth disenfranchisement – the root of many cyber threats.

“The cyber attack highlighted many of our strengths. But more importantly, it also highlighted areas we need to focus on - particularly in our Food business. We’ve already started on this journey, refining our member and customer proposition, making structural changes to our business, and setting our Co-op up for long-term success.”

Outlook

We anticipate continued cost headwinds, global volatility and high competition. In response, we remain committed to a disciplined approach to investment to support our future, while managing a reducing level of cyber impact through the second half.

For Co-op, the attack surfaced both strengths and areas for focus, and future planning is being stepped up across all business areas with:

• 30 planned store openings in H2, including Food stores and franchise formats.
• Operational changes, including leadership moves and a new Group Commercial and Logistics division.
• Continued investment in the future, building on £131m invested in H1.
• Further development of portfolio business model, continuing to grow Life Services division while establishing major new business partnerships.
• Accelerating work to refine our grocery convenience offer in the second half of the year:
• Launching new ranges, including Served – ready-to-cook meals for two for £8, or £7 for members.
• Continuing to open ‘On The Go’ microstores with deli options and hot food.
• Partnering with Holland & Barrett to introduce a health and wellbeing range to convenience stores.

Focus areas

Continuing to innovate

Co-op continues to evolve in line with changing shopping habits, without compromising on convenience, value or values.

• New-concept ‘On the Go’ stores launching through 2025; spaces under 1,000sq ft with hot food counters – a new concept for the UK convenience market.
• Expanding quick commerce (online convenience shopping) proposition with a three-year extension of UberEats partnership. 86% of the UK population now has access to Co-op groceries online through shop.coop.co.uk, UberEats, Deliveroo and Just Eat.
• Launching nearly 200 new own-brand products, including the Irresistible Seriously Saucy sandwich featured on Channel 4, and a multi-award-winning summer product range.
• 2.4% revenue growth for Life Services business, or 6.5% excluding cyber, with new ways to help members at moments that matter:
• Strong step forward in our funeral plan performance with the value of sales growing 17.4% year-on-year.
• Expanding travel insurance offer to help people with undiagnosed conditions secure cover, while increasing total policy sales year-on-year with notable increases in car (+49%), home (+43%) and travel (+100%) policies.
• Investing in AI across our Legal Services business to speed up client cases.

Creating future growth opportunities through partnerships

Through partnerships, Co-op’s long-term plan is to reach new markets while giving members more ways to engage with the business they own.

• Securing a multi-year partnership with Roadchef, transforming eight motorway service stores.
• Rebranding Nisa Retail Limited to Co-op Wholesale, better conveying the breadth of services offered, while retaining the familiar Nisa store look and feel for partners who opt for it.
• Launching “& Co-op” identity, offering business-to-business partners flexible ways to engage with the Co-op brand – through partnerships, franchise models, independent formats or as Nisa stores.
• Announcing new Eurochange partnership, giving members access to 50+ currencies with 0% commission across 240 Eurochange branches, with click and collect and free next working day delivery available.
• A 40% year-on-year increase in franchise stores with a pipeline of greater growth ahead. New franchise stores in H1 include additional partnerships, an expansion of the Group’s petrol forecourts presence, and the second-ever NHS Co-op store at Royal Bournemouth Hospital. (Total Franchise stores H1 2025: 59, H1 2024: 42)
• Increasing the number of Wholesale partners choosing to stock Co-op branded products to 93%; our brand continues to act as a compelling differentiator for independent stores.
• Prioritising and supporting partners through the cyber attack:
• Prioritising impacted independent co-operatives by providing products through our wholesale distribution network, routing c.350,000 cases of stock to 209 independent society stores.
• Pivoting to temporary ordering systems - a testament to strong relationships with suppliers and partners.
• Working with 330 franchise stores to identify and rapidly resolve issues.

Saving members money

"The rising cost of living" remained members’ top concern in the period, based on insight from more than 37,600 members who took part in the Group’s annual Big Survey. For Co-op, offering the right products at the right price remains a key priority.

• Delivering our biggest-ever value campaign, price-matching over 130 items to Aldi for members.
• Improving value perception with 9.2% point increase in surveyed customers in store who are ‘highly satisfied’ with value for money
• Making member prices available online through Deliveroo; already available on UberEats.
• Organisational focus on affordability across all business lines and products:
• Doubled travel insurance discounts in Feb-Mar, making a Which? ‘Best Buy’ accessible to more people.
• Funeral plan offers helped members to save up to £250 between March and June.
• Free legal reviews for members in May, including a £50 discount on any will taken out.

Empowering members to shape their Co-op

Over the past year, the Group’s strategic focus has been on ‘reintroducing’ member-ownership across the organisation, sparking a shift in how the business operates.

• A 22% rise in AGM voting, after voting rights were extended to a further 1.5 million member-owners (2024: 43,061 members voting. 2025: 52,646 members voting).
• A 180% increase in members sharing concerns, ideas and direction through our Big Member Survey (2025: 37,612 responses, 2024: 13,430 responses) and 9,000 more members shaping our businesses and supporting campaigns through our Join In activity (H1 2025: 285,000 members, H1 2024: 276,000 members).
• Fuelling youth engagement, with average member age decreasing by nearly two years, year-on-year, driven by a strategy co-created with Co-op’s Young Members’ Group (Average member age H1 2024: 52.7, H1 2025: 50.8).
• 27% increase year-on-year in the recruitment of members under 25 (H1 2025: 156,700 recruited, H1 2024: 123,000 recruited).
• Acting on members’ priorities, including announcing plans to stop trading with 17 countries where there are human rights abuses and violations of international law.
• Hosting international co-operators and senior leaders from the International Co-operative Alliance as part of the Festival of Co-operation – creating a unique forum to shape the future of the co-operative movement worldwide.

Sharing value with members and communities

As the United Nations recognise 2025 as the International Year of Co-operatives, Co-op continues to deliver for members, along with the communities and causes they care about.

• Raising £7 million with Barnardo’s by 2026, building on £5 million already raised over two years to support 600,000 young people.
• Announcing a new £820,000 fund to support sustainable farming in the UK.
• Sharing £38.2 million via the Co-op Levy Share Scheme since 2021, supporting over 3,500 apprentices.
• Supporting colleagues with continued commitment to Real Living Wage.
• Serving 20,000+ children across 38 schools through the Co-op Academies Trust.
• Reaffirming commitment to source only 100% British protein in own-brand products – fresh, frozen and as an ingredient.

ENDS

Media Enquiries

Co-op

Russ Brady, 07880 784 442, russ.brady@coop.co.uk

Cat Turner, 07834 090 783, catherine.turner@coop.co.uk

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Angharad Couch, 07507 643 004, angharad.couch@cdrconsultancy.com

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