East of England Co-operative Society's profits suffer as overheads increase
The East of England Co-operative Society has reported a marginal increase in turnover but a decrease in underlying trading profit for the half-year to 6 August.
The Society’s interim report for the 28 weeks period reveals that turnover grew by 0.7% to £192.2 million. This includes a 1% increase in Food Retail sales across the Society’s 130 plus supermarkets and food stores.
However, underlying trading profit was down to £7.0 million from £7.5 million compared with the same period last year as the Society struggled with increases in overhead costs.
During the half-year, the Society opened two new food stores in Norwich and Colchester as well as Le Chateau, its new concept wine store in Norwich. The Society now operates more than 200 trading outlets in 70 towns and villages across Norfolk, Suffolk and Essex.
Doug Field, group general manager - finance and technology for the East of England Co-operative Society, said: "Notwithstanding the backdrop of challenging consumer and economic environment, the decrease in underlying trading profit is disappointing although the marginal increase in turnover is encouraging."
He added: "Trading conditions are set to remain challenging through the rest of this year and into 2012, with customers’ disposable incomes under more pressure. However, we expect to deliver a resilient financial performance for the year as a whole and will continue to invest in the local economy."
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