A mounting tax bill has weighed on half-year earnings at Sweden-based retailer ICA, the company revealed today (19 August), although underlying operating profits rose.
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ICA, which is part-owned by Dutch retail giant Ahold, said net income tumbled almost 38% to SEK469m (US$64.6m) for the six months to June.
Operating income was down 7.7% at SEK848m. However, once property disposals and impairment losses were stripped from the result, operating income rose 11.6% to SEK835m. Net sales climbed 5.7% to SEK46.6bn.
CEO and president Kenneth Bengtsson said: “We continue to focus on a clearer price positioning, sales campaigns and more low-price products in all our markets. Other priorities during the year are our cost-savings programmes and to turn around ICA Norway.”
ICA is in the process of revamping its business in Norway, where comparable-store sales rose during the second quarter of the year.
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By GlobalDataHowever, Bengtsson said the restructuring had weighed on earnings in Norway and growing competition in the market had an impact on margins.
He added: “The measures now under way are expected to have an impact later in the year and as a whole will help ICA Norway to improve its operating result for 2009.”
