The combined operating result (FAS) of regional cooperatives and the SOK Corporation was EUR 447 million in 2023, with an increase of EUR 122 million from the previous year. Retail sales excluding taxes increased by 5.5% from the previous year and stood at EUR 14.2 billion. Co-op members accrued Bonus and other cash benefits more than ever before, for a total of EUR 529 million. The overall amount of Bonus also reached a record level of EUR 449 million.

SOK Corporation’s operating result (IFRS) was EUR 102 million. This showed an improvement of EUR 77 million from the previous year, based especially on the hotel company Sokotel’s recovery from the coronavirus pandemic and S-Bank’s strong development.

Four million S-Etukortti cards issued

The strengths of cooperative business – services that benefit customers and an affordable shopping basket – were emphasised during financially challenging times. An affordable price level benefits all customers. In addition, co-op members’ benefits increase as they use more S Group services.

In 2023, S Group first decreased food prices in March for all Xtra products, and the price decreases continued in September and in January 2024.

“Keeping our promise on prices, high-quality services and benefits to the owners added to our attraction: More than 110,000 new members joined cooperatives, and four million S-Etukortti cards have already been issued. It was particularly pleasant to see more and more young adults become co-op members. Our success was also reflected in the increased number of visits to our outlets and the improved customer satisfaction,” says Hannu Krook, CEO of SOK.

Development outpacing the market continued in the supermarket trade

The sales of S Group’s supermarket trade grew by 7.6% from the previous year. The operating result also strengthened from the year before. In the tighter economic situation, some consumers moved to more affordable products and considered their purchasing decisions more carefully. Despite the challenging operating environment, consumer goods trade at Prisma stores performed better than the general market development. The new Prisma.fi online store has reached a good level of business and nearly doubled its sales during the second half of the year.

Grocery trade continued its strong performance, with sales developing better than the rest of the Finnish grocery market every month. S Group also strengthened its position as the market leader in the online grocery trade, with the S-kaupat.fi service increasing its sales by 15.8% from the previous year. The network already includes more than 300 delivery locations across Finland.

The sales of Meira Nova Oy, S Group’s foodservice company, also developed better than the rest of the industry’s market in 2023.

The operating result for travel industry and hospitality business turned profitable

At S Group’s hotels and restaurants, sales grew by 11.5% from 2022. The operating result also improved in the travel industry and hospitality business, turning positive after many difficult years. The recovery was based on long-term investments in the development of the network and services.

The good development of the restaurants was driven especially by fast food concepts, such as Pizza & Buffa and the launch of the Babista chain, focusing on high-quality kebab. At hotels, the demand was driven by leisure travel and the increased number of various business and leisure events. The recovery of international travel was slower.

Fine development in service station store and fuel sales, Sokos department stores and the Emotion chain

In S Group’s service station store and fuel sales, the ABC chain’s operating result improved from the previous year. Business was brisk in car wash and refuelling services, as well as at ABC service stations’ restaurants and stores. However, the value of sales in euros was slightly lower than in the previous year due to the decrease of fuel market prices. The sales of electric charging more than tripled from the year before. The ABC charging service has Finland’s largest power charging network and in 2023, it reached the first place in customer satisfaction among Finnish charging services.

The operating result developed positively in the department store and speciality store trade, where sales increased by 4.2% from the previous year. Customers were particularly interested in campaigns. For example, the 3+1 Days campaign and Black Friday in late autumn reached record sales. Business was particularly busy in the product areas of beauty and cosmetics both at Sokos and in the Emotion chain. Sokos continued to outpace the market in fashion trade as well. The new Sokos.fi online store had a year of strong growth.

Investments worth nearly EUR 700 million in Finland

Investments increased by 20% from the previous year, totalling EUR 667 million in 2023. They included investments were made in the development of the service network, online sales, digital services and energy efficiency. The investments create employment and vitality in different parts of the country: In the 2020s, a total of EUR 2.6 billion has been invested in Finland – an amount nearly corresponding to the growth of sales during this time.

Major investments in outlets included the renewal of the Sale chain and the expansion of the ABC charging network. In addition, more than 50 new or renovated restaurants and several hotels were opened. A wind farm project in Luvia, Eurajoki will be completed in 2024.

“We will also take major steps in digital services, multichannel business and the optimisation of grocery trade assortments. Alongside improving services, digital development increases the efficiency of our operations, which benefits our customers through competitive prices. Even though there are some uncertainties regarding our operating environment and we anticipate our profit development to become more moderate, we have a very good starting point for this year,” Krook says.

Key figures in 1–12/2023

Regional cooperatives + SOK Corporation 1–12/2023:

• Retail sales before taxes totalled EUR 14,208 million (13,465 million in the previous year).

• Operating result (FAS) was EUR 447 million (325 million).

• Investments totalled EUR 667 million (557 million).

• The total number of co-op members at the end of the year was 2,577,010 (2,512,159).

• Cooperatives paid a total of EUR 449 million (414 million) in Bonus to co-op members.

• An average amount of 205 euros was paid to co-op members during the year, including Bonus, payment method benefit, return of surplus and interest on the membership fee.

• The number of personnel was 41,413 (40,875) at the end of the year. This figure is based on active employment relationships. (Includes regional cooperatives, SOK Corporation and S-Bank personnel.)

• The total number of outlets at the end of the year was 2,007 (1,984).

SOK Corporation (SOK + subsidiaries), 1–12/2023:

• Net sales (IFRS) stood at EUR 9,022 million (8,434 million in the previous year).

• Operating result (IFRS) was EUR 102 million (25 million).

• Investments totalled EUR 52 million (81 million).

• The number of personnel was 5,999 (5,686) at the end of the year. This figure is based on active employment relationships.

Regional cooperatives’ and SOK Corporation’s retail sales excluding taxes, Jan–Dec 2023

Percentage changes from 2019, the time before the coronavirus crisis, are included for comparability.

Supermarket sales include S-Group’s retail trade, Prisma’s consumer goods trade and hardware trade.

*The figure includes sales in the Baltic countries and Russia. Business in Russia has ended. Prisma and hotel business operations in Saint Petersburg were sold in June 2022.

SOK Corporation’s financial statements bulletin for January–December 2023 will be published on s-ryhma.fi on 15 February 2024. S Group’s annual and responsibility reviews and SOK Corporation’s financial statements for 2023, including notes, will be published in March 2024.