Norgesgruppen Sees 2.5% Increase In First Half Revenues
Norwegian retail conglomerate Norgesgruppen has posted operating revenue of NOK 43.89 billion (€4.37 billion) in the first half of its financial year, a 2.5% increase on the same period the previous year.
The group, which operates the Meny, Kiwi and Joker banners, among others, said that the performance indicated that its chains were 'performing well' in the face of a 'tough' grocery market.
Operating profit for the period stood at NOK 1.8 billion (€180 million) in the period, compared with NOK 1.6 billion in the same period last year, while operating margin was up 40 basis points to 4.2%.
"We are very pleased with our performance, which is one percent higher than the average market growth," chief executive Runar Hollevik (pictured) said in a statement. "We have seen good results from the investments that we have made in making our operations more efficient. Profitability has been strengthened and we have also been able to provide customers with cheaper and better shopping experiences."
The group's Meny banner posted 3.2% comparable growth in the period, with an increase in the number of shoppers since last year, the group said, adding that the banner was the overall 'growth winner'' in the market.
Its Kiwi brand continues to 'develop well', it said, while both Kiwi and Spar have established 'several new stores' since last year. Its Joker banner has seen a slight decline in store numbers, but has maintained a 'solid position' in the market, Norgesgruppen said.
Norgesgruppen also outlined measures it has taken to develop more sustainable and climate-neutral operations, including the reduction of around 450 tonnes of plastic packaging since last year.
It said that its Asko wholesale division is now 'self-sufficient' in terms of renewable energy, and the group is also on track to achieve a targeted 25% reduction in food waste by 2020.
The group has established a 'green bond' system for investment in climate-friendly distribution, environmental projects and renewable energy.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.