After a positive start to the year, Swedish retailer ICA Gruppen continued its growth trajectory in the second quarter as it welcomed more shoppers and food prices stabilised.
Consolidated net sales in the second quarter increased by 5.3%, to SEK 39.8 billion (€3.45 billion), from SEK 37.8 billion (€3.28 billion) in the same period in 2023, the company noted.
Pharmacy chain Apotek Hjärtat consolidated its position as the largest pharmacy in Sweden, with sales increasing to SEK 5.4 billion (€470 million) from SEK 4.8 billion (€420 million) last year.
CEO Nina Jönsson stated, “Continued falling food price inflation means that growth is now entirely driven by higher volumes. Apotek Hjärtat also continues to [gain] market shares and maintains its 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."
Quarterly Highlights
Despite higher sales and the implementation of efficiency improvement measures, ICA Sweden's earnings fell slightly to SEK 925 million (€80.2 million) in the quarter, from SEK 927 million (€80.4 million) in the same period last year.
Operating profit for ICA Sweden was affected by price investments carried out during the year.
Net sales at Rimi Baltic, which saw increased customer footfall and market share during the quarter, rose to SEK 5.5 billion (€480 million), from SEK 5.3 billion (€460 million) last year.
The company also made a successful green bond issue worth SEK 2 billion (€170 million).
Jönsson added, “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."
