Co-operative H1 profits rise on ‘exceptional’ food, wholesale performances
The Co-operative Group reported a rise in first-half profits on Thursday as revenue was boosted by the food and wholesale divisions.
Group pre-tax profit increased 35% to £27m, with revenue up 7.6% to £5.8bn, driven by "exceptional" food and wholesale performances.
Revenue in the food segment rose 5.2% to £3.9bn as customers shopped closer to home and ate out less frequently during the Covid-19 lockdown. Meanwhile, Nisa wholesale revenues were up 13.9% to £801m, benefitting from local shopping in lockdown and range improvements under Co-op ownership. Co-op bought the Nisa franchise in 2018.
Revenues in the funeral care division edged up 3.5% to £148m, with a 22% increase in volume offset by reduced average revenue per funeral as coronavirus restrictions led to simpler funerals.
Co-op said the pandemic cost the company £54m during the period, including additional recruitment and PPE purchases. It expects costs of £97m for the full year.
Chief executive officer Steve Murrells said: "The coming months and years remain uncertain, and we know our own Co-op will not be immune to the pressures the recession brings to family budgets and to local and national economies. We will continue to invest within our core businesses to ensure that our Co-op value resonates within Co-op households and local communities."