ICA Gruppen is a leading retail group with a focus on food and health. The Group includes ICA Sweden and Rimi Baltic, which conduct primarily grocery retail business; Apotek Hjärtat, which conducts pharmacy operations; ICA Real Estate, which owners and manages properties; and ICA Bank, which offers financial services. ICA Gruppen has approximately 1,900 Group- or retailer-owned stores and pharmacies.
ICA Gruppen’s business model is based on extensive consumer and market insight that is combined with economies of scale to enable coordination gains, strong customer offerings, high customer loyalty, efficient processes, the right mix of channels and physical store networks. ICA Gruppen’s core business is grocery retail. Surrounding this a number of businesses have been built up which individually and in cooperation contribute to an attractive customer offering and stable market position. All of the businesses are to be profitable and support the core business.
A clear trend in retailing is the ongoing digitalization, which affects all of ICA Gruppen’s businesses. A central part of this is the rapid growth of e-commerce. Physical and digital channels will complement each other in entirely new ways, and having a strong position will be a critical success factor going forward. At year-end more than 250 stores in ICA Gruppen offered e-commerce (online shopping), and more than 600 stores offer ICA Matkassen, a meal kit concept marketed as ready-packed grocery bags complete with recipes.
Divestment of holding in ICA Gruppen
In November 2018 Industrivärden communicated its intention to divest its entire shareholding in ICA Gruppen. Against this background, in November 2018 approximately a quarter of the holding was sold to ICA-handlarnas Förbund for approximately SEK 1.7 billion, and in connection with this a put option was acquired from the same counterparty that enables a divestment of the remainder of the holding in May 2019. Industrivärden acquired its stake in ICA Gruppen in 2013 in connection with the company’s formation followed by a new issue, and as an active owner Industrivärden contributed both to the original financing and ICA Gruppen’s strategic development. ICA Gruppen’s stock has been a good investment, delivering an annual total return of approximately 22%, compared with 11% for the Stockholm Stock Exchange’s total return index (SIXRX) during the time Industrivärden owned the stock.
|Earnings per share, SEK||18.05||20.53|
|Dividend per share, SEK||11.50||11.00|
|Share price on Dec 31, SEK||316.80||297.90|