Scotmid Co-op has announced a trading profit of £4.28m for the year ending 27 January, up from £3.03m the previous year.
Operating profit was £2.8m (2022: £3m) and turnover rose to £425m, from £406.5m. Net assets fell to £120.8m (2022: £122.5m) due to property revaluation and pension movements.
Directors noted in the report that the society had maintained performance despite the challenges of the cost of living crisis and global uncertainty “thanks to a combination of controlling store costs, margin work, good early summer weather and a resilient property performance”.
They added: “Inflation in the market started to come down as the year progressed, however, the consumer confidence index remained firmly in negative territory.
“Despite these challenges, including an increase in energy costs of £3.6m, the society’s trading profit increased in the period. The trading result indicates a resilience and, backed by a strong balance sheet, allows the society to remain focused on its core purpose of serving our communities and improving people’s everyday lives.”
Convenience food stores were hardest hit by cost challenges, the report added. “Notably, there were significant increases in energy, wage costs, credit card commission and delivery charges. There was also a challenging balance to be struck between price, margin and volume impact.
Cost savings include increased use of shelf-edge technology, and the society grew its digital offering with more Snappy Shopper hubs and a trial partnership with Just Eat. Local products also continued to be a focus with several Scottish suppliers awarded listings in stores.
“Semichem moved forward modestly despite this being the first year with no Covid rates relief support and absorbing similar increases to food,” said the report. “Property reported a record contribution benefiting from good commercial rent reviews and lower than expected bad debt levels.
“Funeral numbers flattened out as the year progressed, balancing out excess deaths in Q1, with the division conducting more funerals across the full year.”
The society says it made donations to several national charities and good causes during the year, as well as substantial contributions to local food banks via the Winter Giving project. Members, colleagues and customers raised £295,00 for the co-op’s 2022/23 charity partner, Guide Dogs.
The society is now supporting the RNLI as charity partner for 2023/24.
