ICA Gruppen (ICA) Q3 2024 earnings summary

Executive summary

• Net sales rose 6.5% year-over-year to SEK 39,362 million in Q3 2024, with volume growth and increased market shares across all ICA store formats and Apotek Hjärtat, both in-store and online.

• Rimi Baltic delivered a strong quarter with improved profitability and market share, while Apotek Hjärtat also posted high earnings and growing online sales.

• ICA Gruppen's net zero climate targets were approved by the Science Based Targets initiative (SBTi), marking a significant sustainability milestone.

• An Extraordinary General Meeting approved the introduction of non-voting Class F shares, enabling a potential SEK 3 billion capital raise.

Financial highlights

• Operating profit excluding items affecting comparability increased 5.8% year-over-year to SEK 2,068 million in Q3 2024.

• Profit for the period rose 10.8% to SEK 1,342 million compared to Q3 2023.

• Cash flow from operating activities (excluding ICA Bank) increased 22.1% to SEK 2,759 million.

• Net debt (excluding ICA Bank and IFRS 16 Leases) decreased to SEK 18.4 billion, with a net debt/EBITDA ratio of 2.0, down from 2.8 a year ago.

• Return on capital employed (excluding ICA Bank and IFRS 16 Leases) improved to 13.8% from 12.3% year-over-year.

Outlook and guidance

• Group investments for 2024 are expected to reach approximately SEK 4.5 billion, with SEK 2 billion allocated to ICA Real Estate.

• The new share issue is intended to reduce group debt and further align ICA retailers with group development.