ICA Gruppen: sees strong Q3-2021 despite market normalisation

Stockholm / SE. (ica) The third quarter was strong, with earnings improvements in all of the Group’s operations except for ICA Sweden, which had a stable quarter with an unchanged margin at the same time that the comparison figures were challenging. «With subsiding pandemic effects, ICA Gruppen can ascertain that the market in Sweden is on its way to normalising, with – among other things – a continued higher share of sales online than before the pandemic,» Per Strömberg, Chief Executive of Sweden’s ICA Gruppen AB, said in its statement for the third quarter and 9M-2021, the Group published on 28 October.

Strong quarter despite market normalising

  • Higher operating profit and strengthening of operating margin
  • ICA Sweden – stable margin, higher market share
  • Continued earnings improvement for Apotek Hjärtat and higher market shares
  • Rimi Baltic – higher market shares with stable, high earnings
  • ICA Bank – acquisition of Forex and stronger earnings for ICA Insurance

Third quarter 2021 summary

  • Consolidated net sales increased by 2.2 percent to SEK 32,094 million (31,401)
  • Operating profit excluding items affecting comparability increased to SEK 1,818 million (1,698)
  • Profit for the period was SEK 1,389 million (1,302). This includes the net result of divestments and impairment losses, totaling SEK -2 million (-13)
  • Earnings per share were SEK 6.87 (6.45)
  • Cash flow from operating activities, excluding ICA Bank, was SEK 2,318 million (1,752)

Events after the end of the quarter

  • Payout of funding capital from Afa Insurance will have a SEK +70 million earnings effect for ICA Sweden in the fourth quarter

For additional information please read the company's statement. Click here to view the PDF file | 599 KB

Summary of Chief Executive’s statement

CEO Per Strömberg: «The third quarter was strong, with earnings improvements in all of the Group’s operations except for ICA Sweden, which had a stable quarter with an unchanged margin at the same time that the comparison figures were challenging. With subsiding pandemic effects, we can ascertain that the market in Sweden is on its way to normalising, with – among other things – a continued higher share of sales online than before the pandemic. As a result of ICA’s initiative to support and develop sustainable, Swedish-made, plant-based foods (ICA Växa), in September the first products were launched under the new «ICA Swedish plant-based» concept. We are also happy to note that the UN will be presenting an award to ICA Gruppen for our Beyond Climate Neutrality climate ambition. The award will be presented in connection with the UN COP26 Climate Change Conference in Glasgow in November.»