Coop Denmark has reported a net profit of DKK 585 million (€78.6 million) in its financial year 2021, a 24% decline on the previous year due to the elevated sales seen during the pandemic.
In 2020, Coop Denmark reported a net profit of DKK 777 million (€104.4 million). Its 2021 result is well ahead, however, of its 2019 profits of DKK 392 million (€52.7 million).
"In 2020, the borders were closed, most people worked at home and the restaurants were not open – as you know, this gave a headwind for the grocery trade," commented Coop Denmark chairman Lasse Bolander. "So it is natural that we do not continue at the same high level.
"The result for the year was also affected by the massive investments in the digital transformation of the company and the roll-out of Coop 365discount."
Performance By Banner
Performances varied across Coop Denmark's various banners – Kvickly reported 'one of the best results' in its 60-year history, while Fakta had a 'highly unsatisfactory' year, during which 50 stores were converted to the new Coop 365discount chain.
Elsewhere, SuperBrugsen, Dagli´Brugsen and Irma performed 'in line with expectations', while online businesses Coop.dk MAD and Coop.dk reported 'strong revenue growth', the group added.
The year saw a further 48,663 members sign up to the cooperative, with members receiving DKK 283 million in dividends, which can be used directly as payment in stores and online.
The Year Ahead
Looking ahead to the coming year, Coop Denmark said that the outlook is 'very challenging' due to increased prices, the rising cost of energy, and customer migration to lower-cost purchases.
It anticipates that profits will be 'significantly lower' as a result.
"We are sticking to our long-term strategy," said CEO Kræn Østergård Nielsen. "But in the meantime, the war in Ukraine and the very extensive price increases we receive from our suppliers mean that we are slowing down."