ICA AB interim report January - June 2010
ICA AB interim report January - June 2010
Solna 18 August, 2010
Improved operating income despite lower net sales in second quarter
Second quarter ? Net sales for the second quarter amounted to SEK 23,143 million (24,037), a decrease of 3.7 percent. At constant exchange rates net sales fell by 1.3 percent.
? Operating income amounted to SEK 646 million (582), up 11.0 percent. Operating income excluding capital gains/losses on property sales of SEK -5 million (56) and impairments of SEK 37 million (58) amounted to SEK 688 million (584), up 17.8 percent. ? Income after net financial items amounted to SEK 550 million (497), up 10.7 percent. ? Net income for the second quarter amounted to SEK -340 million (360). The second quarter includes a tax charge of SEK 747 million for a tax dispute related to the period 2001–2003.
First half-year ? Net sales for the first half-year amounted to SEK 45,862 million (46,596), a decrease of 1.6 percent. At constant exchange rates net sales fell by 0.4 percent.
? Operating income amounted to SEK 1,266 million (848), up 49.3 percent. Operating income excluding capital gains/losses on property sales of SEK -1 million (71) and impairments of SEK 37 million (58) amounted to SEK 1,304 million (835), up 56.2 percent. ? Income after net financial items amounted to SEK 1,087 million (661), up 64.4 percent. ? Net income for the first half-year amounted to SEK 55 million (469), down 88.3 percent. The first half-year includes a tax charge of SEK 747 million for a tax dispute related to the period 2001–2003.
Extract from CEO comment – Kenneth Bengtsson, CEO and President ICA AB: "During second quarter, the ICA Group delivered a strong operating result despite lower net sales. Net sales fell due to a generally weak food retail market and an increasingly promotional competitive environment. At the same time, operating income improved in ICA Sweden, ICA Norway and Rimi Baltic thanks in part to higher gross margins and in part due to lower costs as an effect of ICAs ongoing cost reduction program. ICA Banks operating income fell in the second quarter as a result of lower net interest income, while ICA Real Estate continued its stable development. Consolidated net income for the period was charged with increased tax expenses owing to a ruling by the Swedish Administrative Court of Appeal on a tax dispute for the period 2001-2003, which ICA announced in the beginning of June. ICA has filed an appeal and request for leave to appeal to the Supreme Administrative Court."
For the entire report, with a complete comment by the CEO and description of the financial results, please see the attached pdf-file.
For more information: Kenneth Bengtsson, President and CEO, ICA AB, phone: +46 8 561 502 58 ICAs press office, phone +46 70 253 66 60 ------------------------------------------------------------------------------ ------------- About ICA The ICA Group (ICA AB) is one of the Nordic regions leading retail companies, with around 2,200 of its own and retailer-owned stores in Sweden, Norway and in the Baltic States. The Group includes ICA Sweden, ICA Norway, Rimi Baltic and ICA Real estate. ICA also offers financial services to Swedish customers through ICA Banken. ICA AB is a joint venture 40% owned by Hakon Invest AB and 60% by Royal Ahold N.V. of the Netherlands. According to a shareholder agreement, Royal Ahold and Hakon Invest jointly share controlling influence over ICA AB. Through Royal Ahold, ICA AB is part of an international retail network. For more information, please visit http://www.ica.se