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Retail

ICA Reports Positive Full-Year Results

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ICA Reports Positive Full-Year Results

ICA, the Swedish retail group, has announced its full-year figures for its fiscal year 2012. Net sales for the year were up 1.8 per cent, or 4.2 per cent at constant exchange rates, adjusted for the divested ICA Maxi stores in Norway, totalling SEK 96,863 million (€11,293 million).

Operating income rose by 11.9 per cent to SEK 3,466 million, excluding non-recurring items, driven by a sustained strong sales performance in ICA Sweden. ICA Sweden’s net sales rose by 5.2 per cent to SEK 65,750 million and operating income came in at SEK 2,849 million. The increases were driven by better sales, improved margins, reduced logistics costs and a strong performance in non-food.

ICA Norway still proved difficult for the group and "didn’t manage overall to keep pace with the market". Net sales excluding the divested ICA Maxi stores increased by 1.3 per cent in local currency, amounting to SEK 19,050 million. Attempts to make the Norwegian business more profitable included the divestment of ICA Maxi stores in the first half and the signing of a purchasing and distribution agreement with Norgesgruppen for ICA Norway.

The group will focus on Rimi in the Baltics in 2013, following the banner's success in Estonia and Latvia. Five discontinued Supernetto stores in Lithuania were converted to the Rimi banner, a country of growth for the retailer. Net sales at Rimi Baltic were down 0.4 per cent to SEK 10,050 million, and rose by 3.3 per cent in local currency.

Speaking on the group's goals for 2013, CEO Per Strömberg said, "In 2013 one of our priorities will be achieving a turnaround in ICA Norway. In addition, the Group’s companies will cooperate more closely and focus on increased Group synergies, especially in sourcing. We will also initiate a digital effort that will, among other things, give ICA’s customers the option to also shop for our products online. Essential, to fulfill the new strategy, work has begun to develop shared values for the entire ICA Group."

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It was announced yesterday (11 Feb) that Hakon Invest will buy Ahold's 60 per cent stake in ICA AB for SEK 21.2 billion (€2.4 billion). Hakon Invest and ICA will merge to form ICA Gruppen but the deal will not affect ICA's sourcing synergies with Ahold. (12 Feb)

© 2013 - ESM: European Supermarket Magazine by Sadhbh Connor

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