ICA Gruppen’s report for second quarter 2023

Higher sales but pressured margins owing to lower volumes and investments in lower prices.

• ICA Gruppen’s Q2 sales grew to SEK 37,823 million (34,586).
• Operating profit (excl. items affecting comparability) for ICA Gruppen was slightly higher than in the same period a year ago, SEK 1,629 million (1,511), but the operating margin narrowed slightly to 4.3% (4.4%).
• ICA Sweden’s sales increased to SEK 26,666 million (24,936), but the operating margin decreased to 3.5% (4%) as a result of lower volumes and continued price investments. Profitability for ICA stores is being impacted by continued high inflation and lower volumes, which is shown in lower profit distribution for the quarter, SEK -67 million.
• Apotek Hjärtat posted a record quarter; sales increased by 14%, and operating profit grew by SEK 57 million.
• Rimi Baltic strongly improved its earnings, and the operating margin grew by 1.5 percentage points.
• ICA Bank’s earnings improved and business volume continued to grow, mainly affected by higher market interest rates.
• ICA Real Estate’s earnings were lower, mainly as a consequence of completed property sales and the formation of a new jointly venture company, Delcore.
• During the quarter ICA Gruppen successfully completed its first green bond issue, for SEK 3.5 billion.
• The remaining portion of the Group’s bridge loan, SEK 1.8 billion, was amortised in July.

Comments by ICA Gruppen’s CEO, Nina Jönsson:

“Market development during the quarter was characterised by a lower rate of inflation and continued focus on prices. We have worked further with our price initiatives and are seeing an improved volume trend in the Group’s grocery retail businesses. Apotek Hjärtat posted a record quarter, and Rimi Baltic’s earnings also improved sharply. On the whole, the Group's earnings rose despite weaker performance for ICA Sweden than a year ago. This is partly attributable to lower profit distribution from ICA stores, which indicates a drop in store profitability. The Group's cash flow from operating activities was strong.”

For more information
ICA Gruppen press service, telephone number: +46 (0)10 422 52 52, email: press@ica.se

Frans Benson, Head of Investor Relations, telephone number: +46 (0)8 561 500 57

icagruppen.se

ICA Gruppen AB (publ) is one of the leading retail companies in the Nordic countries with a focus on food and health. The Group includes ICA Sweden and Rimi Baltic, which mainly conduct grocery retail, ICA Real Estate, which owns and manages properties, ICA Bank, which offers financial services, ICA Insurance, and Apotek Hjärtat, which conducts pharmacy business. ICA Gruppen had sales of approximately SEK 136 billion in 2022. For more information, visit icagruppen.se.

This information is such that ICA Gruppen AB is obligated to make public in accordance with the Swedish Securities Market Act. The information was submitted for publication by the contact person above at 07.00 CET on Thursday, 17 August 2023.

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