CI Coop says dividends may be reduced or not paid to customers

Board members will vote on suspending or reducing dividends in May

Coop customers in the Channel Islands may not be paid 2023's dividends - or a reduced rate - after the company said it had been a challenging year.

On Tuesday, the Channel Islands Co-operative Society (CI Coop) said its financial performance had been hit by global supply chains and rising costs.

The chief executive said customers had experienced "financial stress" but it was not "immune".

Board members will vote on suspending or reducing dividends in May.

The retailer said "significant ongoing strain" of global supply chains, raw ingredient prices, energy costs and rising inflation had hit last year's profits.

'Tough decisions'

In a letter to CI Coop members, chief executive Mark Cox said: "Faced with this decline, the society must make some tough decisions that will impact our members.

"This may involve either reducing dividend payments or suspending them entirely for the 2023 financial year.

"We are acutely aware of the financial stress our customers are experiencing in the current economic climate and we are investing in prices to mitigate the impact as much as we can.

"Our business has not been immune, however to the consequences of these global issues and in particular rising costs."

He said CI Coop was in a strong financial position and despite "difficult decisions", investment was central to the retailer's strategy.

• Listen to Mark Cox speaking about dividend payments on BBC Radio Guernsey