The ICA Group has today reported a 1.6 per cent increase in net sales in the second quarter, with a boost of 3.9 per cent for the first half of the year, reaching SEK48,067 million. Net income for the second quarter was SEK338 million, and SEK776 million for the first six months.
The Scandinavian retailer's operating income excluding non-recurring items in Norway, hit SEK1.5 billion, a jump of 21.9 per cent.
The Swedish arm of the group saw an increase of 5.6 per cent in net sales, to SEK32.07 billion. The retailer's private label products are selling particularly well in Sweden where own label now makes up almost 20 per cent of sales and is seeing twice as much growth as for other products.
ICA Norway saw a drop of 1.1 per cent in net sales, down to SEK9.97 billion and "underperformed" according to group CEO, Per Strömberg, who added, "It will take time, however, before we see a satisfactory result level in ICA Norway."
Sales in Rimi Baltic increased by just over 3 per cent in local currency in the first half of the year, although the retailer is not yet satisfied that price cuts in Rimi stores have increased volume.
Strömberg said, “The ICA Group continued its positive development during the second quarter 2012. Net sales at constant exchange rates rose by 1.3 per cent, mainly due to sales increases by ICA Sweden, Rimi Baltic and ICA Bank...During the quarter, Group Management continued to define the future strategic direction for the ICA Group and work proceeded as planned.”
The ICA group has over 20,80 employees, 2,248 stores and is part owned by Dutch retail group Royal Ahold. (22 Aug)
© 2012 - ESM: European Supermarket Magazine
