57% Drop in Underlying Profits for FY21 Due to Covid Impact

  • Co-op Group’s profits dropped 57% in FY21
  • Underlying Food business profits fell 55% to £156m
  • Pre-tax profits decreased 55% from £127m to £57m
  • Total group revenues down 2.8% year-on-year to £11.2bn
  • Food sales dropped 55% to £156m, including furlough repayment
  • Wholesale sales fell 12%, two-year growth at 9%
  • Lower sales due to changing customer habits and supply chain issues
  • Investments in businesses and colleagues impacted profits
  • Chair Allan Leighton focuses on business performance and innovation

The Co-op Group has reported a significant drop in profits for FY21, with underlying profits falling by 57% year-on-year to £100m. The Food business’s underlying profits fell 55% to £156m compared to £350m in FY20, while pre-tax profits dropped 55% from £127m to £57m. Total group revenues decreased by 2.8% year-on-year to £11.2bn due to unusual customer behavior at the start of the pandemic and supply chain issues. The Food sector saw a 3.3% two-year growth, while Wholesale had a 9% increase in sales. Co-op attributed lower sales to changing consumer habits and higher low-margin fuel sales. Chair Allan Leighton emphasized the need for business performance improvement and innovation.

Factuality Level: 8
Factuality Justification: The article provides accurate information about The Co-op Group’s financial performance during FY21, including specific numbers for profits, revenues, and sales across different segments of the business. It also includes quotes from Allan Leighton, chair of The Co-op Group, discussing the challenges faced by the company and their plans for the future.
Noise Level: 3
Noise Justification: The article provides relevant information about the financial performance of The Co-op Group during the pandemic and offers insights into the reasons behind their reduced profits. It also includes a statement from the chair of the company discussing the challenges faced and future plans. However, it does not contain any misleading or irrelevant information, nor does it dive into unrelated territories.
Financial Relevance: Yes
Financial Markets Impacted: The Co-op Group’s financial performance is impacted by Covid-19 related supply chain issues, reduced availability of products, and changing customer behavior.
Financial Rating Justification: This article discusses the financial performance of The Co-op Group, which includes information about their profits, revenues, sales, and business challenges due to the pandemic. It also mentions the impact on financial markets through supply chain issues and changes in consumer behavior.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk