April 27, 2018 / 5:11 AM / 4 months ago

BRIEF-Ica Q1 operating profit lags, plans measures to restore margins

April 27 (Reuters) - ICA Gruppen AB:

* Q1 CONSOLIDATED NET SALES AMOUNTED TO SEK 27,181 MILLION (25,703), AN INCREASE OF 5.8%

* Q1 OPERATING PROFIT EXCLUDING ITEMS AFFECTING COMPARABILITY WAS SEK 972 MILLION (996)

* REUTERS POLL: ICA GRUPPEN Q1 ADJUSTED EBIT WAS SEEN AT 1,027 MILLION SEK, SALES SEEN AT 26.8 BILLION

* SAYS WE HAD FAVOURABLE SALES PERFORMANCE IN SWEDEN DURING QUARTER, AND OUR E-COMMERCE SHOWS VERY GOOD GROWTH

* SAYS WE ARE GETTING TOO LITTLE RETURN FROM THIS SALES GROWTH, WHICH MEANS THAT OVERALL ICA SWEDEN’S EARNINGS FOR Q1 WERE SLIGHTLY WEAKER THAN WHAT WE HAD COUNTED ON

* SAYS GIVEN THE EARNINGS PERFORMANCE, WE HAVE INITIATED A NUMBER OF MEASURES TO RESTORE PROFITABILITY

* SAYS WE ARE NOT SATISFIED WITH OUR EARNINGS THIS QUARTER, BUT IN THE LONGER PERSPECTIVE WE HAVE GOOD PROFITABILITY AND STRONG CASH FLOWS

* SAYS WE SEE NO REASON TO CHANGE OUR LONG-TERM AMBITION TO MAINTAIN PROFITABILITY AND OPERATING MARGINS. OUR LONG-TERM PLAN AND OUR TARGETS REMAIN FIRM Source text for Eikon: Further company coverage: (Stockholm Newsroom)

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