Co-op reaps dividend as profits surge 38%
The British Co-operative movement was today celebrating its biggest trading improvement since the 1960s after seeing annual profits surge 38%.
The group of 42 consumer-owned co-operative societies, which include supermarkets, travel shops and undertakers, increased turnover by 6.4% to £13.3bn (€19.8bn) while net profits rose to £441m (€657.2m) from £320m (€476.8m) a year earlier.
Dame Pauline Green, chief executive of Co-operatives UK, said the figures reflected the “gradual and solid” improvement of the last five years.
She added: “Our improvement in both profitability and market share is the result of greater focus on business performance, acquisitions and improved financial management.”
The strongest performing societies included Lothian, Borders & Angus with net profits as a percentage of sales rising to 7%.
The figure for the Lincolnshire Co-op was 6.5% while the Ipswich and Norwich Co-op reported a rate of 5%. Across the movement, profit as a percentage of sales was up from 2.7% to 3.5%.
The Co-op said its drive to capture more of the convenience store sector had been rewarded with an increase in its share of the food market from 5.6% to 6%. The number of outlets in this sector also grew to 3,250.
The latest figures, which cover the periods ending September 2003 and January 2004, were presented at the annual Co-operative Congress in Manchester today.
Ben Reid, chairman of Co-operatives UK and chief executive of West Midlands Co-operative Society, said retailers had been investing heavily in getting the offer right for members and customers.
He added: “Investment in premises, products and customer service across our trading formats is leading to improved financial performance.”
