Swedish retailer ICA Gruppen has seen its fourth-quarter profits excluding non-recurring items reach SEK 1,024 million, down from SEK 1,081 million in the corresponding period in 2014.
It is also 12 per cent below analysts' estimations of SEK 1,165 million, according to Reuters. Consolidated net sales amounted to SEK 26,489 million, up from SEK 23,180 million in 2014.
Per Strömberg, chief executive of ICA Gruppen explained that its operating profit fell due to expansion and future investments. "We delivered a stable result for the full year 2015 and are pleased overall with our performance for the year. At the same time, we are seeing a tougher competitive situation in our markets, where during the second half of the year ICA Sweden began losing market shares for the first time in a long time," he said.
"However, the slightly lower earnings during the fourth quarter compared with a year ago is mainly attributable to costs for expansion and investments in the future."
Profits from continuing operations rose to SEK 1,427 million from SEK 807 million, which included capital gains of SEK 457 million from sales of non-current assets.
ICA is the market share leader in Sweden with 1,302 stores in the country.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by John Golden. To subscribe to ESM: The European Supermarket Magazine, click here.
