Interim report January - June 1999

INTERIM REPORT OPERATIONS DURING THE PERIOD JANUARY 1 - JUNE 30, 1999 % change compared with preceding year - Net sales SEK 2,507 m (2,357) +6.4 % - Operating income SEK 71.3 m (71.3) 0.0 % - Income before tax SEK 72.1 m (72.5) -0.6 % - Operating margin 2.8 % 3.0 % - Earnings per share after full tax SEK 2.08 (2.09) - Three new stores opened - Decision made to establish an additional three stores - Two new bakeries established Hemköp increased its sales volume and captured new market shares. During the first half of the year new stores were opened in Västerås, Valbo and Oskarshamn. The decision has been made on the acquisition of an additional two stores and on the implementation of one new establishment. Hemköp's new large-store concept, Hemköp Plus, was introduced in connection with the opening of a new store in Valbo at the end of May. The concept has shown itself to be successful in the market. Sales and earnings Hemköp's net sales increased during the period by 6.4 percent, to SEK 2,507 m (2,357), entailing growth in volume of approximately 5.5 percent. According to preliminary industry statistics, volume increased by 1.5 percent for the industry as a whole during the period. Hemköp's volume growth is mainly attributable to new stores, however, comparable units have also contributed to the increase. The operating margin was 2.8 percent (3.0), and thus operating income for the period was unchanged at SEK 71.3 m. Earnings were charged with costs for implementation of the new large-store concept in Valbo and new-establishment costs, most of which were incurred during the second quarter. Net financial items amounted to SEK 0.8 m, compared with SEK 1.2 m a year ago, and income after financial items totaled SEK 72.1 m (72.5). Capital expenditures and expansion Capital expenditures totaled SEK 68.0 m (56.8). Three new stores and two bakeries were established during the period. In addition, three stores underwent extensive refurbishment and acquired additional retail space. An additional eight stores were equipped with Hemköp's new, computerized checkout system, which has now been installed in 56 stores. The project will be concluded throughout the chain in early 2000. Financial position The Group's liquid assets totaled SEK 60.0 m (87.5) as per June 30. Net interest-bearing assets amounted to SEK 42.6 m (72.8). The equity ratio was 35.7 percent (33.6), and the debt-equity ratio was 0.1 (0.1). Number of employees The average number of full-year employees was 2,609 (2,433). The increase is mainly attributable to staff at new stores, but also to training activities in connection with the introduction of a new concept for prepared dishes and the installation of the new, computerized checkout system. Parent company Sales in the parent company amounted to SEK 14.2 m (14.2) for the period, while income after financial items was SEK 0 (0). Falun, Sweden, July 27, 1999 Hemköpskedjan AB (publ.) Håkan Matz President and CEO The interim report has not been subject to examination by the Company´s auditors. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/07/27/19990727BIT00130/bit0001.doc http://www.bit.se/bitonline/1999/07/27/19990727BIT00130/bit0002.pdf