ICA
36
Joint
ventures
Performance by segment continued
ICA
Net sales
Operating income
Net income
Ahold
Annual Report 2011
Groupata glance
Performance
Governance
Financials
Investors
The information presented in this section relating to ICA and JMR (on a 100 percent basis)
represents amounts that are not consolidated in the Company's financial statements since
Ahold's investment in ICA and JMR is accounted for using the equity method described in
Notes 3 and 14 to the consolidated financial statements.
Established: 1917
Joint venture with Ahold formed: 2000
Brands: In Sweden, ICA Nara, ICA To
Go, ICA Supermarket, ICA Kvantum, and
Maxi ICA Hypermarket. In Norway, ICA
Naer, ICA Supermarked, ICA Maxi, and
Rimi. In the Baltics, Rimi Hypermarket,
Rimi Supermarket, SuperNetto, and
Saastumarket
Market area: Sweden, Norway, Estonia,
Latvia, and Lithuania, in Europe
Store formats: Supermarkets,
hypermarkets, compact hypermarkets,
convenience stores, and financial services
through its consumer bank
Own brands include: ICA, ICA Gott Liv,
ICA Selection, I love eco, Skona, ICA
Cook Eat, ICA Basic, and ICA Home
ICA is a food retail group, headquartered in Stockholm, Sweden. As of year-end 2011ICA
served 2,248 retailer-owned and company-operated retail food stores in Sweden, Norway, and
the Baltic States. The company also provides consumer financial services in Sweden through
its bank.
Ahold owns a 60 percent stake in ICA AB, which in turn owns the ICA group. The other
40 percent stake in ICA is held by Hakon Invest AB, a Swedish company listed on the Stockholm
Stock Exchange. Under the shareholders' agreement with Hakon Invest AB, Ahold's 60 percent
shareholding stake in ICA does not entitle it to unilateral decision-making authority over ICA,
because the agreement provides that strategic, financial, and operational decisions will be made
only on the basis of mutual consent. The shareholders' agreement also provides for a call and put
option exercisable by Ahold or Hakon Invest AB as the case may be, if there is a change of
control over the other party.
Despite weak market conditions, ICA Sweden achieved sales growth and strengthened its
market position in 2011. It ran a series of successful price campaigns with a focus on own-brand
products. ICA Sweden continued to broaden its offering, opening new Cura pharmacies and ICA
To Go convenience stores. In addition, customers can now order a grocery bag composed by
ICA chefs that contains all the ingredients needed to cook a selection of healthy and tasty meals,
for delivery directly to their doors. Investments in logistics and warehouse infrastructure led to
temporarily increased costs in 2011
ICA Norway introduced a business plan to develop synergies and accelerate the company's
goal of achieving positive results. The overall plan is to focus on a two-banner strategy with
Rimi discount stores emphasizing value and ICA Supermarkets providing premium offerings.
In connection with this new focus, the company announced its intention to divest its ICA Maxi
stores. An extensive cost efficiency program is also incorporated into the business plan.
Rimi Baltic recovered and achieved the same profitability level it had before the start of the
financial crisis in 2008. The company is actively focused on strengthening its fresh food offerings,
own-brand products and price perception.
In 2011, net sales were €10.5 billion, an increase of 2.6 percent at constant exchange rates.
The increase was due to a solid performance in Sweden and the Baltic countries, as well as
higher revenues by ICA Bank.
Operating income increased €34 million to €338 million at an operating margin of 3.2 percent.
At constant exchange rates, operating profit increased €17 million, mainly due to an improved
performance in the Baltic countries. ICA Bank also achieved a good performance driven by
increased net interest income from a greater number of customers.
In 2011, net income increased €150 million to €204 million, mainly due to last year's income tax
expense related to a tax claim by the Swedish tax authorities and a provision against deferred tax
assets in Norway.
More about ICA online:
www.ica.se
