Norwegian retail group NorgesGruppen has reported total operating revenues of NOK 41,769 million in the first half of 2017, representing an increase of 8.1% compared to the same period last year.
However, operating profit for the first half stood at NOK 1,398 million, down from NOK 1,435 million last year, with operating margin falling to 3.3%.
The retailer says that this 'somewhat weaker result' was due to continued investment, such as structural changes in Dagrofa. The group also had major transactions in both the purchase and sale of real estate in the first half of the year.
Tough Grocery Market
NorgesGruppen says that it is pleased with these results, given strong market competition, and a battle for low prices.
"It is a great acknowledgment for all who work in NorgesGruppen that we have a positive development in an increasingly tough grocery market," said Runar Hollevik, CEO of NorgesGruppen.
The company operates Kiwi, Meny, Spar and Joker stores throughout Norway, and has a 27.2% market share.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.