Co-operative Group sees profit increase 85% thanks to rising food sales and the acquisition of Nisa

Rising: the turnover of food products now accounts for almost three-quarters of the total turnover of the group

The cooperative group said that the acquisition of supermarket operator Nisa increased its profits by 85% in the first half.

The company saw pre-tax profit rise to £ 26 million in the 26 weeks to 7 July, from £ 14 million a year earlier, while sales increased 10 percent to £ 5 billion, driven by strong food sales and the Nisa acquisition.

The like-for-like sales of food retailing in food rose by 4.4 percent compared to last year, bringing food incomes to £ 3.6 billion, which is now almost three-quarters of the group's total sales.

Rising: the turnover of food products now accounts for almost three-quarters of the total turnover of the group

Rising: the turnover of food products now accounts for almost three-quarters of the total turnover of the group

Co-op & # 39; s purchase of £ 143 million from Nisa was completed in April and saw the number of stores that nearly doubled the Co-op supplies to 7,770. Today the Coöperatie 850 has supplied its own brand products to Nisa partners.

Co-op non-executive chairman Allan Leighton said growth is coming despite a difficult trading environment.

& # 39; Against the background of increasing national uncertainty, I am pleased that the Cooperative has continued to perform successfully in the first half of the year, "he said.

& # 39; These results show that we are growing our business and increasing the positive impact we can have on our members and the causes they find important in their community, "he added.

Revenues also increased during the funeral activities of the Co-op, by 5 percent to £ 174 million, partly due to a higher mortality rate in the first quarter.

The group said it would further reduce its prices for funeral services, including the launch of cremation without ceremony & # 39; and a & # 39; guarantee to make it & # 39; like-for-like & quot; quote from another provider on the funeral expenses.

However, sales of his insurance business fell by 2 percent to £ 160 million, due to increased competition & # 39; on the car insurance market.

Together with the positive half-year results, the group announced the return to healthcare with the acquisition of Dimec, a digital platform approved by the NHS that enables consumers and pharmacists to manage repeat prescriptions.

The today announced acquisition of Dimec means that The Co-op can accelerate the development of its healthcare supply, giving it access to the technology needed to develop services for customers to better address their healthcare needs and better communicate with their NHS GP & # 39; , the group said in a statement.

The group also said that it recovered from the unloading of its banking activities. The cooperative almost collapsed in 2013 after a funding gap of £ 1.5 billion was found in its banking activities.

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