Co-op overcomes food sales fall
The Co-operative Group today reported a 48 per cent rise in underlying profits despite a 2.5 per cent drop in same-store food sales at its supermarket arm as it battled “extremely fierce” competition.
The mutual said profits rose to £545.7m in 2010 and announced that dividend payments to its 6.5m members would increase by 55 per cent to £77.4m.
Overall food sales were up 4.8 per cent to £7.5bn as the group benefited from integrating the Somerfield supermarket chain, but like-for-like sales declined as it struggled to compete with supermarket rivals.
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Hide AdIts financial services arm, which includes Smile internet bank, reported a 24% rise in sales to £2.5bn following the acquisition of the Britannia building society.
The group warned the outlook would remain challenging into 2012 as the economic downturn is deeper than it expected.