This is ICA Gruppen

With 2,100 of our own and retailer-owned grocery stores in five geographical markets, ICA Gruppen is one of the leading retail companies in the Nordic region. The core business is grocery retail. The other businesses are ICA Bank, ICA Real Estate and a number of wholly-owned or partly-owned portfolio companies.

Within ICA Gruppen, entrepreneurship is combined with large-scale and diverse operations, and local adaptation is combined with economies of scale and efficiency. Through cooperation and development of mutually supporting operations, ICA Gruppen has succeeded in securing customer confidence, good profitability and a leading market position.

In 2013 ICA Gruppen had net sales of around SEK 100 billion and more than 21,000 employees, most of them in Sweden, Norway and the Baltic region. Around 50,000 people work at ICA in offices, with logistics or in one of ICA's own or retailer-owned stores. 

ICA Gruppen’s share is listed in the Large Cap segment of NASDAQ OMX Stockholm. The largest shareholder at the end of the year was ICA-handlarnas Förbund (the Association of ICA Retailers).

Key figures, pro forma*    
 Group 2013 2012
Net sales, SEK m 99,456 99,602
Operating income (EBIT) excluding non-recurring items, SEK m 3,004 2,715
Operating income (EBIT), SEK m 2,547 2,607
Income before tax, SEK m 1,919 2,091
Income for the year, SEK m 1,424 312
Operating margin excluding non-recurring items, % 3.0 2.7
Operating margin, % 2.6 2.6
Return on capital employed, % 6.1 7.0
Return on equity, % 6.0 1.1
Earnings per ordinary share, SEK 7.05 1.65
Earnings per C share, SEK 7.05 1.65
Dividend per ordinary share, SEK 8.0 0
*See glossary    

 

A leading player in grocery retail

ICA Gruppen is one of the Nordic region’s main players in grocery retail. At the end of 2013 there were 2,127 wholly-owned or retailer-owned stores, 1,321 of which are located in Sweden, 571 in Norway and 235 in the Baltic region.

Bank with the most satisfied customers

ICA Bank fulfils several important functions. In addition to providing user-friendly banking services, ICA Bank is also helping to improve loyalty to the ICA stores while reducing the cost of the financial flows in the ICA system.

The Nordic region’s largest real estate company focusing on retail properties

ICA Real Estate is one of the largest commercial real estate companies focusing on retail properties in the Nordic region. The overall mission is to meet the Group’s long-term need for appropriate properties in the right locations in Sweden and Norway.

The portfolio companies

ICA Gruppen also owns, wholly or partly, a publishing company and four retail companies. After an evaluation of the portfolio companies in 2013, ICA Gruppen decided to divest Forma, Kjell & Company and Cervera. Hemtex and inkClub are believed to have the potential to support the core business and will therefore not be divested.

2013 in brief

  • Hakon Invest acquires Ahold’s shares in ICA AB.
  • Hakon Invest changes its name to ICA Gruppen.
  • New Executive Management team for ICA Gruppen.
  • The Norwegian Competition Authority imposes a temporary suspension on cooperation agreement with Norgesgruppen. The relevant ministry gives a temporary go-ahead to a joint purchase while the final decision is pending.
  • ICA Gruppen issues new shares for SEK 5 billion.
  • Decision on expanding the warehouse in Helsingborg.
  • ICA Gruppen issues bonds.
  • The Norwegian Competition Authority extends the suspension of the cooperation agreement.
  • ICA Sweden decides to expand ICA To Go.
  • ICA Real Estate completes the acquisition of a warehouse property in Helsingborg.
  • Evaluation and decisions regarding portfolio companies and a new non-food strategy.
  • ICA Bank named Sweden’s best private bank.
  • ICA Real Estate issues preference shares.
  • New financial goals are presented.

Important events after the end of the year

  • ICA Gruppen signed an agreement to refinance the last outstanding bridge loans with other debt financing. All the bridge loans raised in conjunction with the acquisition of the remaining shares in ICA AB have now been refinanced.
  • The Norwegian Competition Authority has notified in an advance ruling that it will not approve the cooperation with Norgesgruppen. At the time of writing, a review of the decision and the consequences it may have for the Company’s operations in Norway is in progress.

Outcome 2013

  
  • In Sweden ICA Gruppen grew faster than the market overall. Rimi Baltic had a growth rate slightly below the market. In Norway the growth was below the market.
  • Operating profit excluding non-recurring items amounted to about SEK 3 billion, representing an increase in the operating margin to 3%.
  • Net debt amounted to 2.1 times EBITDA.
  • Proposed dividend: 68% of profit for the year.
  • Direct climate impact was reduced by 18% compared with 2006.
  • 77% of ICA's suppliers of corporate brand products in high-risk countries are socially audited.
  • 59% of ICA's food suppliers of corporate brand products are quality certified.