THE chief executive of the Coop is hoping members will accept a 2% dividend – after the organisation revealed it had suffered a loss last year.
Having warned members three months ago that the traditional dividend payment might not be made as a result of challenging trading conditions, Coop directors have proposed a smaller-than-usual annual dividend.
The Coop reported a net loss of £1.8 million for the year to 14 January in the annual report and accounts, but highlighted its “strong financial position” with a turnover of £208.5m and a “robust strategy for recovery and growth”.
Speaking after the publication of the report and accounts, chief executive Mark Cox said he was pleased with the initial reaction of members.
“It was always going to be a difficult announcement to make [in February] but we felt it was right to be as honest and transparent with members as possible.
“We’re delighted to have been able to offer a 2% dividend, albeit lower than previous years.
“The response so far has been positive, with members recognising that this has been a challenging time, and I hope they’ll support the proposals at the annual meeting.”
Mr Cox confirmed that the financial performance outlined in the report would not enable bonuses to be made to the senior leadership team and other members of staff.
“Bonuses would not be appropriate at this point – we have informed colleagues about this and they have been understanding,” he said.
Directors of the Coop do not receive bonuses, he said, adding that the 2% dividend was higher than cooperative organisations in the UK.
Chair of the board Jon Bond said many of the global factors experienced during 2022 had persisted in 2023, creating an “increasingly challenging trading environment”.
These included the continuing war in Ukraine, significant adverse weather events across the globe and locally, and the Israel-Hamas conflict, he added, with knock-on effects on inflation, interest rates and supply chains.
Writing in the annual report, Mr Cox expressed confidence in the Coop’s ability to overcome challenges through collaboration and innovation, outlining investment in modernisation, the acquisition of seven pharmacies from Lloyds and the opening of news stores.
There are also plans for an “innovative member rewards scheme” in the coming months, he added.
Mr Cox emphasised the cooperative’s dedication to community welfare, which he said remains firmly rooted in cooperative principles.
“Despite the challenges we faced, there’s ample reason for pride, particularly in our commitment to making a real difference to the communities we serve,” he said.
In 2023, the Coop donated £148,000 to local charitable causes and community groups, provided more than 500 hours of colleague volunteering hours to support local charitable groups and distributed 150,000 items of surplus food waste through community sharing app Olio.
