Co-op Group posts £25m pre-tax profit as member figures surge

Consumer business Co-operative Group has this morning (September 21) announced double-digit profit growth.

The Manchester-headquartered organisation pulled in pre-tax profits of £25m for the 26 weeks to July 1 2017, up year on year by 47%.

Overall revenues were however down at £4.6bn, compared with £4.7bn during the same period in 2016, although the company said the figure indicates improved stability.

Operating profits were down by 29% to £51m, but this was mainly due to an investment of £29m into member rewards.

Of the company’s performance on the member front, Co-op Group CEO Steve Murrells said: “Championing a better way of doing business for our members and their communities is what the Co-op is all about and I’m delighted that we are really starting to deliver on that purpose.

“Since we launched our member reward scheme in September 2016 more than 1.1 million people have signed up to join the Co-op.”

He continued: “As a result we’ve been able to give £35m back to our members and their communities over the first half of this year, a conscious decision to share our success with our members and the 4,000 good causes which mean so much to them.”

Co-op also expanded its bricks-and-mortar footprint during the half-year, with 34 new Food stores and 27 new funeral homes opened.

Speaking further, chief exec Steve commented: “We can do all this because our businesses have continued to perform in the face of challenging markets.

“Food has posted a 14th consecutive quarter of like-for-like sales growth, Funeralcare continues to lead the market on the back of the launch of our Simple Funeral offer and our Insurance business continues to lead on making driving safer for the young.”

He added: “Across our business we are also maintaining our commitment of re-investing for the future success of our Co-op.”