Co-op reveals profits rise but has concerns for the future
The Co-operative Group has today issued half year results which show a 17% rise in profits from £221 million over the corresponding period last year up to £260 million this year. There was a 12.6% increase in profits from its supermarket division even though there were distribution issues with regards to the integration of the Somerfield acquisition. However, it is the company’s comments about the immediate future of the UK economy which have caught the eye.
The company itself has expanded not only the supermarket division but also its financial services operation which has given the Co-operative Group a larger base in the UK. However, the downturn in the UK economy is hitting all areas of UK business and no one company is immune from the financial difficulties being felt by many consumers in the UK. As a consequence, despite a number of cost savings to kick in over the next 12 months, in relation to the Somerfield acquisition, like all other financial services and supermarket companies, the Co-operative Group will need to fight to stay on the current growth path.
It will be interesting to see whether the Co-operative Group continues to grow as the company has been very lively on the acquisition front of late.
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