ICA Group’s interim report for the third quarter 2012
Strong operating income in third quarter
- Net sales for the third quarter amounted to SEK 23,805 million (24,008), down 0.8 percent. Adjusted for the closed ICA Maxi stores in Norway, net sales increased by 2.6 percent, or 4.0 percent at constant exchange rates.
- Operating income amounted to SEK 1,043 million (922) excluding non-recurring items of SEK 0 million (592), an increase of 13.1 percent.
- Income after net financial items amounted to SEK 964 million (235).
- Net income for the third quarter amounted to SEK -590 million (-2). The net income includes a tax expense of SEK 1,279 million related to a tax dispute for the years 2004 – 2008.
- Net sales for the nine-month period amounted to SEK 71,872 million (70,258), up 2.3 percent. Adjusted for the closed ICA Maxi stores in Norway, net sales increased by 4.1 percent, or 4.2 percent at constant exchange rates.
- Operating income amounted to SEK 2,540 million (2,150) excluding non-recurring items of SEK 194 million (592), an increase of 18.1 percent.
- Income after net financial items amounted to SEK 2,125 million (1,303).
- Net income for the nine-month period amounted to SEK 186 million (684). The net income includes a tax expense of SEK 1,279 million related to a tax dispute for the years 2004 – 2008.
Extract from CEO comment – Per Strömberg, CEO ICA AB:
The ICA Group’s positive development continued during the third quarter. Operating income amounted to SEK 1,043 million, our strongest quarterly result to date. However, net income for the period was impacted by a tax expense of about SEK 1.3 billion due to the ruling by the Administrative Court of Appeal on October 4th.
The work to define the ICA Group’s future strategic direction has resulted in a new Group-wide strategy approved by the Board of Directors in September. The strategy is based on ICA’s strengths – including our fundamental business model with retailer-owned stores, a strong customer base and strong brands - and accentuates the importance of capitalizing on opportunities for synergies within the Group. The Group strategy is based on six strategic themes that will set the direction for everything we do: Strengthen customer loyalty and brand position, Strengthen and expand our customer offering, Optimize and broaden our sales channels, Simplify our business, Engage and develop our people, Excel in corporate responsibility. These in turn define a number of areas and priorities which we will work with in the short and medium term and now serve as the basis of the companies’ continued strategy work for 2013 and beyond.
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:
Per Strömberg, CEO, ICA AB, phone: +46-10-422 50 05
ICA’s press office, phone +46 70-253 66 60
The ICA Group (ICA AB) is one of the Nordic region’s leading retail companies, with around 2,100 of its own and retailer-owned stores in Sweden, Norway and the three Baltic states. The Group includes retail companies ICA Sweden, ICA Norway and Rimi Baltic; ICA Real Estate, which owns and manages properties; and ICA Bank, which offers financial services to Swedish customers. 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 www.ica.se