ICA Gruppen (ICA) Q2 2024 earnings summary

Executive summary

• Net sales increased by 5.3% year-over-year in Q2 2024, driven by higher volumes and increased customer footfall in Sweden and the Baltics.

• Market shares grew in both ICA Sweden and Rimi Baltic, with Apotek Hjärtat further strengthening its leading position.

• A SEK 519 million capital gain was realized from a land exchange in Årsta, and a successful SEK 2 billion green bond issue was completed.

• Price investments led to a slightly weaker gross margin in ICA Sweden, but cost savings and efficiency gains offset the impact.

• Apotek Hjärtat and ICA Bank delivered strong earnings growth, with Apotek Hjärtat reaching an all-time high quarterly result.

Financial highlights

• Q2 2024 net sales: SEK 39,826 million, up 5.3% year-over-year; H1 2024 net sales: SEK 76,975 million, up 6.3%.

• Q2 operating profit (EBIT): SEK 2,262 million (+12.6%); operating profit excl. items affecting comparability: SEK 1,746 million (+7.2%).

• Q2 profit for the period: SEK 1,422 million, down from SEK 1,524 million due to higher tax costs.

• Q2 operating margin excl. items affecting comparability: 4.4% (4.3% in Q2 2023).

• Cash flow from operating activities (excl. ICA Bank): SEK 4,193 million, up 4.6% year-over-year.

Outlook and guidance

• Price will remain a key competitive factor amid a challenging global environment and fierce market competition.

• Continued focus on price investments, efficiency, and attractive offerings to maintain favorable development.

• Group investments for 2024 expected to exceed SEK 4 billion, with about SEK 2 billion in ICA Real Estate.