Scotmid Co-operative delivered “another strong half year performance” in the face of challenging cost pressures and Brexit uncertainty, according to boss John Brodie.
Brodie was commenting on the publication of Scotmid’s interim report for the 26 weeks ended 27 July 2019.
The Society made an H1 trading profit of £2.5m, up 8% on the equivalent period in 2018 and without the benefit of a long hot summer. Turnover also increased, up £3m to £190m.
“The performance of our food stores was particularly encouraging with the continued work on our ‘famous for food’ strategy helping to drive growth in a summer period which did not compare with the record-breaking summer the previous year,” said Brodie.
Scotmid’s property business benefitted from new lettings and rental income growth, while “successful cost control” helped Semichem hold steady in the face of “significant market challenges”. However, a fall in the death rate early in the year – a result of the mild winter – impacted on its funeral business.
The Society recently concluded a charity partnership with the Scottish SPCA, RSPCA and USPCA, which raised £325,000 to help fund the education of primary schoolchildren about animal welfare.
Despite the impressive first half numbers, Brodie expected the next six months to be more challenging.
“The position on Brexit remains unclear and the possibility of a ‘no deal’ makes it hard to predict the impact on the Society’s second half performance,” he said.
“The Society will therefore continue to focus on matters within our control and celebrate the success of Scotmid’s 160 years of serving our communities and improving people’s everyday lives.”