High StreetSupermarkets

Co-op profits dropped by almost 50% in H1

The Co-operative Group saw profits drop by almost 50% in the six months to July, as the firm’s funerals business took a hit from an “unexpected” drop in the number of deaths.

Profit before tax reduced to £25m for the period, compared with £44m for the same period last year.

Profits at the group’s funeral arm plummeted by over half, profits for H1 dropped to £13m compared with £28m last year. The drop was attributed to an “unexpected” 10% drop in the number of deaths. Revenue at the Co-op Funeralcare also dropped by 6%.

CEO Steve Murrells said the firm was now “actively repositioning” the division after funerals fell from 53,213 this time last year to 48,423 in its latest half-year.

The fall in profits is in-spite of a 50% increase in food profit for the year, up to £95m, compared with £80m last year. The food arm of the business has now recorded 22 consecutive quarters of growth in its sales.

Revenue also rose by 12% to £5.4bn in part down to strong food sales and Co-op’s recent acquisition of Nisa convenience store chain.

Murrells said: “We’ve enjoyed another good six months where the strength of our business has led to a further £35m of value being generated for our members and their communities.

“Our food business continues to perform strongly in a highly competitive market and has now recorded 22 consecutive quarters of like-for-like sales growth. As our largest business, it is providing the fuel for our growth in terms of member value and community impact.”

Some £29m was also handed down to its members, alongside £6m to 4,000 local causes, as group net debt rose from £714m in January to £784m.

Back to top button

Please disable your ad-blocker to continue

Ads are the primary way in which publishers generate the revenue needed to pay their staff. If we can't serve ads, we can't pay journalists to write the news.