The Co-op Group has reported a half-year underlying pre-tax loss of £75m, with at least £206m in lost sales, after its IT networks were struck by hackers in April.
The attack, which caused payment problems, stock shortages and the loss of member data, caused “significant challenges”, said chair Debbie White.
The loss for the six months to 5 July compares to a £3m profit in the same period a year earlier.
The Group, which also warned of increased staffing costs, estimates that the full-year results will see the hit to profits worsen to £120m as a result of the attack.
Chief financial officer Rachel Izzard told Reuters: “We believe the hit to the half year is £80m, we believe the hit for the full year is £120m and that’s inclusive of any [insurance] recovery
“We had the front-end elements of cyber insurance in place in terms of the immediate response capabilities in the technology space for third parties but we don’t believe we will be claiming on insurance for back-end losses.”
Related: Co-op and mutuals movements adjust to life on the cybercrime frontline
However, the Group said it has maintained strong balance sheet with net debt at £43m, reduced from nearly £1bnin 2021, and that this has helped to withstand the pressures from the cyber attack and a poor economic backdrop.
It said its life services businesses had recovered sales ahead of expectations, but recovery in “challenging” grocery retail market was slower.
Now, its focus will be on “building back stronger”, it added, with strategic plans accelerated in the second half, including launch of new Group Commercial & Logistics Division and 30 new store openings.
“Over the past three years, we’ve built a stronger and more resilient Co-op,” said CEO Shrine Khoury-Haq, “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.”
Looking ahead, the report warned of “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.“
The report set out ongoing innovations in the Group, including its On the Go microstores, partnership with Holland & Barrett, growth of quick commerce deliveries, expansion of life services, and a multi-year partnership with Roadchef to transform eight motorway service stores.
Related: Co-op Group enters the loans business through its insurance arm
And, highlighting the Group’s co-op values in the International Year of Cooperatives, the report set out efforts to financially support colleagues and members, and to drive member engagement, with a 22% rise in AGM voting.
Member consultation has included major surveys, it added, and impacted Group policy, notably its decision to “stop trading with 17 countries where there are human rights abuses and violations of international law”.
Efforts to drive youth engagement via the Young Members’ Group have seen average member age decrease by nearly two years, year-on-year (H1 2024: 52.7, H1 2025: 50.8).
