Coop Norway has reported growth in revenue and market share in its financial year 2021, a year that saw tough competition and increased costs erode its profit margin.
Revenue at the group, which also operates building materials, real estate and finance businesses, amounted to NOK 72.2 billion, up from NOK 71.1 billion in 2020.
The company’s operating profit (EBIT) reached NOK 2.1 billion, while profit before tax expense (EBT) was NOK 2.6 billion.
Grocery chains owned by the group increased their overall market share to 29.7% from 29.3% during the financial year.
Coop Norway’s Extra chain increased its market share to 16.4% in this period from 15.6% in 2020.
Geir Inge Stokke, CEO of Coop Norway, commented, “We are very pleased to increase sales and shares in a market characterised by very tough competition. Our fantastic employees are on hand every day to deliver the best customer experiences.”
Stokke added, “All our chains have a solid position, and a variety of different chain concepts has always been Coop's strength. In recent years, the Extra chain, in particular, has gained momentum and is growing the most in the market.
"This growth has continued into 2022 and it will surprise me if the chain does not end the first half of the year as the growth winner in groceries.”
The company also acknowledged that rising raw materials and logistics costs are affecting margin growth.
Stokke feels that the retailer needs to ensure the lowest possible prices on groceries when energy, transport, and raw material prices are on the rise globally.
“Regardless of the situation, we always do our utmost to help our customers and co-owners get the best selection at the lowest possible price,” he added.