Swedish retailer ICA Gruppen has seen its consolidated net sales rise 0.9% to SEK 24.98 billion (€2.59 billion) for the first quarter of the year.
Profit for the period was up considerably to SEK 1.13 billion (Q1 2016: SEK 735 million), however this was boosted by capital gains on sales of non-current assets and impairment losses totalling SEK 399 million.
In February, ICA announced that the sale of its properties in Norway was completed, leading to the capital gains boost for the period.
“The first quarter looked roughly like the end of last year - a slightly more tentative market with weak volume development in which a comparatively large share of sales growth was price-driven,” said ICA chief executive Per Strömberg.
“The fact that Easter falls in April this year and February 2016 included a leap day makes it a bit difficult to have an exact idea of the market’s development, but we believe our sales are well in line with the market.”
Earnings Per Share
Earnings per share at the period stood at SEK 5.61, up from SEK 3.65 in the same period last year.
“As for earnings, we are in line with our financial targets and have stable margins, which we are satisfied with,” Strömberg added.
Its Rimi Baltic business saw sales up marginally to SEK 3.3 billion, however profit at this division was down slightly to SEK 94 million.
Commenting on the retailer’s performance, Barclays European Food Retail Equity Research said ‘ ICA Sweden EBIT in 1Q came in at SEK 789mn, slightly above consensus of SEK 772mn, which meant a stable margin at 4.4% thanks mainly to lower logistics costs and a better sales mix.
'Although ICA’s market share grew slightly during the quarter, volumes were negative at -0.2% adjusted for price and calendar effects.’
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up for ESM: The European Supermarket Magazine.
