Co-operative Group claimed to have outperformed rival grocers when it posted a 6 per cent rise in convenience store like-for-like sales.
Food sales at the business rose 9 per cent to£2.6 billion, and profits rose 52 per cent to£69.5 million.
The retailer's acquisition of Alldays last year should drive further growth and generate cash for further acquisitions, said chief operating officer for retail Malcolm Hepworth.
Co-op's pharmacies division, National Co-operative Chemists, returned profits of£9.8 million, up£3.9 million year on year.
Hepworth said that pharmaceutical deregulation could also prove an opportunity for the group.