ICA Gruppen: Reports Q1-2024 Interim Results

Stockholm / SE. (ica) ICA Gruppen AB published its interim report from January to March (Q1-2024). More customers choose ICA and Apotek Hjärtat which drives volumes and improves earnings, the Group said in its summary. Development in brief:

  • Consolidated net sales increased by 7.4 percent to SEK 37,150 million compared with 2023 (SEK 34,605 million) for the first quarter and operating profit rose to SEK 1,490 million (SEK 1,293 million)
  • The Group’s improved earnings were affected by positive calendar effects such as the leap day and an early Easter as well as the fact that we recognised major non-recurring costs in the corresponding quarter in the previous year
  • The quarter was characterised by strong customer flows which led to increased market shares for ICA Sweden. Customers are also buying more items each time they shop which taken overall contrbuted to improved earnings for ICA Sweden
  • The operating margin for ICA Sweden, which sells goods to the ICA retailers, was 3.6 percent compared with 2.7 percent in the corresponding quarter last year. At the same time, food price increases normalised during the quarter
  • More customers are also choosing to shop at Apotek Hjärtat which further strengthened its leading position as Sweden’s largest pharmacy. Apotek Hjärtat’s sales increased to SEK 5,153 million (4,503)
  • Rimi Baltic also took market shares but had a weaker operating profit than in the corresponding quarter last year
  • The Group made a bond issue of SEK 2 billion

Chief Executive Statement

Comments by CEO Nina Jönsson: «The year has started well with significantly lower food price inflation and a food price initiative now being rolled out in the stores. It is gratifying to see that customers are returning to ICA at the same time as the number of products in baskets is rising again – and this can of course be seen in stronger earnings, largely driven by these higher volume. Price remains important to our customers and it is therefore more relevant than ever that we invest to improve prices over time. Already last year, several ICA stores, especially the larger ones and the Rimi stores, started investments in reduced prices and March saw the rollout in Sweden of the price initiative in Sweden announced earlier. This will take place in stages and provide lasting lower price levels – and an improved price experience – for key everyday products. We can already see greater momentum with higher customer flows and there are indications that the ICA stores are now showing the strongest performance in the market. An excellent start on which to build.»

Key Financial Data

20240508-ICA-GRUPPEN-Q12024(Source: ICA Gruppen AB)