LONDON: The Co-operative Group just returned to profit after recovering from a loss last year.
The group said in its interim results statement, for the 26 weeks ending on July 4, that profit before tax hit £64 million ($98 million).
Revenue fell but remained “stable” to £4.6 billion ($7 billion), from £4.7 billion ($7.2 billion) in 2014.
However, the reason for the profit surge was a little more morbid. The Co-op said that a “high death rate” in Britain led to its funeral parlours having the “busiest start to a year since 2008, with business volumes increasing by nearly 12%.”
In this sector, Co-op’s underlying profit rose to £51.8 million ($80 million), from £34.6 million ($53 million) the year before. Revenue also jumped by 16%. The group also added ten new funeral homes to its portfolio, taking the total estate to 970.
The Co-op also posted strong like-for-like food sales with increases stemming from core convenience stores, which was up 3.3%. Underlying profits increased by 21% to £120.4 million ($183 million).
Richard Pennycook, Chief Executive of The Co-operative Group, said:
We’ve made a good start on the three year journey to Rebuild The Co-operative Group. These early days are about fixing the basics – putting in place new leadership teams and providing the investment to deliver the strategies for our businesses. Our customers and members are beginning to see the difference.
Our colleagues share a great belief in The Co-operative, and what we stand for. They are at the forefront of our Rebuild efforts as we focus on our purpose of ‘Championing a better way of doing business for you and your community’.”
