CI Coop looks to half dividend pay-out amid losses

The retailer announced it had made a loss of £1.8m in 2023

The Channel Islands Co-operative has put forward plans to reduce its dividend payout to 2%, half the current 4%.

It comes as the retailer announced in its annual report it made an overall loss of £1.8m in 2023.

That's despite turnover jumping by more than 8% to £208.5m.

The plans are due to be voted on by shareholders this month at shareholders meeting in Guernsey on 21 May and Jersey on 22 May.

'Most challenging trading period'

In an email to shareholders, the retailer said its annual report for 2023 gave an insight into one of its "most challenging periods".

Despite the loss, chairman Jon Bond emphasised the company's "solid financial position" and said it had a strong balance sheet.

The Coop had warned that it would need to reduce its payout, or not offer one at all.

That lead to long queues in store as members tried to withdraw funds.

It has now suggested a 2% dividend pay-out to its 122,394 members.

Mr Bond said: "We have taken the time to thoroughly review what is in the best interests of our member owners and our ability to sustainably pay a dividend despite the impact of world events on our profits in the last year."

'Absorbed increased costs'

CEO Mark Cox said "unprecedented" levels of inflation have placed pressure on the retailers operations.

He said: "In our efforts to shield our members from these challenges we've proactively absorbed increased costs, we further invested in our price drop campaign despite the strain on our margins and organised member discount weekends to offer immediate benefits.

"However, despite our concerted efforts and ongoing operational adjustments to combat inflation, we've faced a significant loss this year.

"Consequently we’ve had to make some tough decisions, including reducing dividend, suspending bonus payments, and investing margin to enhance the value we provide to our members."