He added that the UK’s competitive supermarket industry meant customers would be largely shielded from the impact of higher wheat prices.
Co-op’s financial services arm, which includes brands such as Smile bank, reported a 41% fall in bad debts. It said profits rose by 34%.
The Co-op runs a range of businesses, from financial and funeral services to travel agents and pharmacies.
It has more than five million members and employs more than 120,000 people.
The organisation can trace its roots back to the founding of the co-operative movement in Rochdale, north-west England, in 1844.