Scotmid Co-op defied a wet summer and low consumer confidence to deliver a £2.1m trading profit for the 26 weeks to 27 July, up £0.6m on the six months to 2023.
Turnover was £214m (previous first half £212m) and pre-tax profit was £753m (£326m).
“With market conditions continuing to be tough on consumers, this interim result was challenging and was heightened by exceptionally poor summer weather,” said the report.
“However, the society did benefit from lower year-on-year energy costs, a solid property performance and the 2023 restructuring savings. This, coupled with margin work in retail and tight control of costs, has helped to offset reduced customer footfall, higher employment costs and other costs resulting in a trading profit of £2.1m; a year-on-year increase of £0.6m.”
Scotmid’s retail divisions were hit by the poor summer weather and cost-of-living crisis, they added. The food business lifted its turnover but while it saw the greatest fall in energy costs from 2023, it had significant cost increases in other areas.
Semichem remained focused on increasing sales and margin while tightly controlling costs, the report added, while property delivered a “solid” result, with successful rent reviews and proactive letting management.
Funerals saw a quieter start to the year with death rates falling and more customers opting for lower-priced direct funerals.
The society says it continued to support the community with grants, including a donation to the Jamieson Spatial Laboratory at the Cancer Research UK Scotland Institute was made. Other substantial donations included the Dundee International Women’s Centre, Edinburgh Children’s Hospital Charity and Scottish Fire and Rescue Service.
The Charity of the Year partnership with RNLI continued with £274k raised allowing the society to donate a new Atlantic 85 lifeboat to the charity.
“With difficult economic conditions, the first half of the year was challenging,” said CEO Karen Scott. “However, tight cost control, utilisation of technology and a focus on pleasing our customers has allowed us to deliver a result ahead of last year.
“We have again remained committed to continuous improvement, which has helped to maximise sales opportunities and best fulfil the needs of our customers.”
She added: “August also saw the retirement of my predecessor, John Brodie, after 30 years with the society and 20 as chief executive. I would like to note my thanks for his dedication to Scotmid and leadership of our team over the years.
“His legacy will live on as we remain focused on continuous improvement and, of course, our core purpose of serving our communities and improving people’s everyday lives.”
Main picture: Scotmid’s Edinburgh HQ
