Co-op profits rise by over a quarter

National retailing group Co-op has reported a pre-tax profit increase of 27 per cent a year after the launch of its Stronger Co-op, Stronger Communities strategy.

The company’s total revenue has risen 14 per cent to £10.2bn, which it attributes to the acquisition of groceries retailer Nisa and the strong performance of its food division, which saw an uplift of 4.4 per cent in a fifth year of consistent growth.

The company invested £75m into the expansion of its retail network, as well as acquiring healthcare tech platform Dimec for the development of a digitally enabled healthcare service for members.

As a co-operative, the company has also reported investing £79m in members’ services and community initiatives in 2018.

Steve Murrells, chief executive of the Co-op, explained: “Over the past year we have continued to successfully transform the Co-op, leading to a 14% increase in revenues to £10.2bn and the return of £60m directly to our members and £19m to over 4,000 community projects across the UK.

“The acquisition and integration of the Nisa wholesale business has been a game changer in expanding our food footprint and we have also set out the path by which we can offer our members a broader range of compelling Co-op solutions in Insurance and Health.”

While results show that Co-op’s funeral service business saw a dip of 1 per cent, the group exceeded its financial expectations overall and remained under its target debt threshold following the Nisa acquisition.

Allan Leighton, independent non-executive chair of the Co-op, added: “A year into launching our Stronger Co-op, Stronger Communities ambition and we continue to grow both sales and social impact.

“We have also made significant investments to further align our business with the needs of our members and deepen our understanding of the communities in which they live.”

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