Iceland's biggest grocery retailer, Baugur, has posted a net loss of IKr354m (US$4m) for its fiscal second quarter, mainly due to losses in the US.

Baugur, which recently acquired a 15% share in UK frozen foods company Big Food Group, says the losses were the result of problems at its US 384-outlet Bonus Store chain.

The net loss was on sales of Kr12.8bn and compared badly with analysts' expectations for profits of around Kr120m.