Co-operative Group reports H1 2025 profit hit from cyber attack

Core Insights - The Co-operative Group experienced a £80m ($107m) decline in operating profits for H1 2025 due to a cyber attack, which included £20m in one-off costs [1] - The underlying pre-tax loss for the six months ending 5 July 2025 was £75m, a significant drop from a £3m profit in the same period the previous year [1] - The cyber attack resulted in a £206m impact on sales revenue [1] Financial Impact - CFO Rachel Izzard estimates the total profit impact for the year will reach £120m, with limited insurance recovery expected [2] - The group's revenue decreased by 2.1%, from £5.6bn in H1 2024 to £5.4bn in H1 2025 [4] - Net debt, excluding leases, was reported at £43m, a significant reduction from nearly £1bn in 2021 [5] Operational Challenges - The cyber attack compromised IT systems, leading to payment disruptions, product shortages, and the theft of personal data from 6.5 million members [2] - Funeral homes reverted to paper-based operations, and stores experienced empty shelves due to the attack [3] - The company faces ongoing challenges such as rising costs, global volatility, and market competition [5] Strategic Response - CEO Shirine Khoury-Haq noted the attack revealed both strengths and areas for improvement, particularly in the Food business [4] - The company is committed to a disciplined investment approach to support future growth while managing cyber impact [5]