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The Ica report for the third quarter is well received on the stock market. On Thursday, at 09:20 GMT, the Ica group's share had increased by more than 10%.
Keeping the price movement is the strongest one since October 13, 2008, when the ICA has rushed 15.3%, according to Finwire.
In the last two quarters, the profitability of the Swedish portion of Ica, in particular, has been disappointing. Currency, commodities and logistics drove margins. But in the third quarter, things look better and Ica CEO Per Strömberg is pleased with the development.
That's what he says in an interview with the Directly News Agency.
"We are seeing, first and foremost, a strong and steady increase in the number of customers and that is what is driving our business," says Per Strömberg, who does not want to expect marginal growth for the coming quarter.
"We have a program to come back and I think we will see results in the third quarter," he told Direkt, adding:
"We had to correct some fundamental changes, including the monetary correction, but we also see new online initiatives and how we treat customers work well."
In the second quarter, the high logistical costs weighed heavily on the result due to the large volume variations and the lack of drivers. Per Strömberg said the worst should be over.
Read more: Analysis: Ica's digital dilemma: Can in-store producers connect online?
"These volumes of volatility have been normalized, but it is clear that high fuel prices and lack of drivers will remain," he said.
Ica 's eCommerce continued to grow in the third quarter, up 40% from the same quarter of last year, which is necessary for Ica to benefit from the same. coverage for costs incurred in its e-commerce warehouse.
"A total of 260 stores are working with e-commerce and this number is growing. With regard to the number of stores affiliated with those online, there are 50 stores, and even there, we are recording strong growth. very good, "says Per Strömberg.
When has enought Many stores are connected to cover e-commerce storage costs?
"We do not provide accurate forecasts, but we are seeing positive development and we need a critical mass, but it will take several quarters."
Icas third quarter:
In the third quarter, sales amounted to SEK 20,730 million (19,869) and operating profit to 1,040 million (1,004).
According to the compilation by Infront Data of two (!) Analyst estimates, the operating profit should rise to 995 million SEK.
The good sales growth, the neutralized currency impact and a much higher profit-sharing, which shows that the performances in the main Ica stores have improved, are clearly positive elements, "says the CEO of Strömberg in his report. .
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