24 August 2024
English German
Market + Management

ICA Gruppen: announces second quarter 2024 report

Stockholm / SE. (ica) ICA Gruppen AB published its interim report for the six months from January to June (H1-2024). The trend continues, the Swedish Group said in its summary: More customers are choosing ICA at the same time as food prices have stabilised. Customers also continue to flock to Apotek Hjärtat which strengthens its position as Sweden’s largest pharmacy. Development in brief:

  • Consolidated net sales increased by 5.3 percent to SEK 39,826 million compared with 2023 (SEK 37,823 million) for the second quarter and operating profit rose to SEK 2,262 million (SEK 2,008 million).
  • The Group’s improved earnings were affected by a land exchange transaction in Årsta which provided a capital gain of approximately SEK 500 million. This reduced the Group’s loan debt by approximately the same amount.
  • Apotek Hjärtat achieved a very good result and strengthens its position as Sweden’s largest pharmacy. Apotek Hjärtat’s sales increased to SEK 5,359 million (SEK 4,832 million).
  • The trend of more customers choosing to shop at ICA continues but despite higher sales and the company’s major efficiency improvements, ICA Sweden’s earnings reached SEK 925 million (SEK 927 million) which is slightly lower than in the corresponding quarter last year. Operating profit for ICA Sweden, which sells goods to the ICA retailers, was affected among other things by the investments in price carried out by ICA Sweden during the year.
  • Rimi Baltic also saw continued increased customer footfall during the quarter which led to increased market shares. Net sales for the second quarter amounted to SEK 5,462 million (SEK 5,307 million).
  • ICA Gruppen also made a successful green bond issue totalling SEK 2 billion, the second such issue.

Chief Executive Statement

Comments by CEO Nina Jönsson: «I am pleased to report that the positive start to the year has been maintained with a continued increase in the flow of customers to our grocery stores in both Sweden and the Baltic countries. Continued falling food price inflation means that growth is now entirely driven by higher volumes. Apotek Hjärtat also continues to take market shares and maintains its fine earnings development. For almost a year now, ICA’s growth has outpaced the market. Month by month we can see clear results from the long-term price investments carried out by ICA Sweden and the ICA retailers. Despite a troubled global situation, we have seen stable price development during the quarter. Price will remain a very important factor for our customers and competition in the market is intense. Getting the price right but also making use of our combined ability to create attractive and relevant offerings across our various operations, we believe is the right way to maintain our favourable development.»

Key Financial Data

20240820-ICA-GRUPPEN-H12024(Source: ICA Gruppen AB)


 OTHER TOPICS FROM THIS SECTION FOR YOU: