16 July 2024
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Market + Management

ICA Gruppen: reports second quarter 2023 results

Stockholm / SE. (ica) ICA Gruppen AB published its interim report from Q2-2023. The Group reported higher sales but pressured margins owing to lower volumes and investments in lower prices. Summary:

  • ICA Gruppen’s Q2 sales grew to SEK 37,823 million (34,586).
  • Operating profit (excluding items affecting comparability) for ICA Gruppen was slightly higher than in the same period a year ago, SEK 1,629 million (1,511), but the operating margin narrowed slightly to 4.3 percent (4.4 percent).
  • ICA Sweden’s sales increased to SEK 26,666 million (24,936), but the operating margin decreased to 3.5 percent (4 percent) as a result of lower volumes and continued price investments. Profitability for ICA stores is being impacted by continued high inflation and lower volumes, which is shown in lower profit distribution for the quarter, SEK -67 million.
  • Apotek Hjärtat posted a record quarter; sales increased by 14 percent, and operating profit grew by SEK 57 million.
  • Rimi Baltic strongly improved its earnings, and the operating margin grew by 1.5 percentage points.
  • ICA Bank’s earnings improved and business volume continued to grow, mainly affected by higher market interest rates.
  • ICA Real Estate’s earnings were lower, mainly as a consequence of completed property sales and the formation of a new jointly venture company, Delcore.
  • During the quarter ICA Gruppen successfully completed its first green bond issue, for SEK 3.5 billion.
  • The remaining portion of the Group’s bridge loan, SEK 1.8 billion, was amortised in July.

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Comments by ICA Gruppen’s CEO, Nina Jönsson: «Market development during the quarter was characterised by a lower rate of inflation and continued focus on prices. We have worked further with our price initiatives and are seeing an improved volume trend in the Group’s grocery retail businesses. Apotek Hjärtat posted a record quarter, and Rimi Baltic’s earnings also improved sharply. On the whole, the Group’s earnings rose despite weaker performance for ICA Sweden than a year ago. This is partly attributable to lower profit distribution from ICA stores, which indicates a drop in store profitability. The Group’s cash flow from operating activities was strong.»

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