Swedish retailer ICA said it started the year on a “positive note”, despite booking a drop in first-quarter profit hit by one-off costs.
ICA, owned by Swedish investment fund Hakon Invest, booked operating profit of SEK562m (US$85.9m) in the period to the end of March, compared to SEK690m last year. The retailer blamed a non-recurring cost of SEK187m in connection with a sourcing and logistics deal with Norwegian retailer Norgesgruppen.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
In January, ICA and Norgesgruppen entered a co-operation agreement that saw the pair coordinate distribution and logistics between ICA Norway and Norgesgruppen’s wholesale company, Asko. However, earlier this month, Norway’s Competition Authority placed a temporary block on the tie-up while it examines whether the deal could lessen competition in the market.
ICA’s sales in the first quarter amounted to SEK23.08bn, a drop of 1% on the prior year. The decline was a result of the sale of ICA Maxi stores in Norway.
In its domestic market, however, operating profit was up 16.5% to SEK629m as a result of higher sales to its stores. Sales climbed 3.9% to SEK16m. During the year, ICA said it plans to launch 250 new own label products in Sweden.
In February, Hakon reached an agreement with Ahold to acquire the remaining 60% of shares in ICA in a SEK20bn deal.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataClick here to view the earnings release.
