Norway: Norgesgruppen earned NOK 1.6 billion before tax in the first half of the year
NordenBladet – The Norgesgruppen grocery chain earned NOK 1.6 billion before tax in the first half of 2023. Norgesgruppen owns, among other things, the Kiwi and Meny chains. The group had operating income of NOK 54.3 billion in the first half of the year. Last year, the figure was 49.4 billion, they report in a press release.
Profit before tax fell to NOK 1.61 billion, compared to NOK 1.64 billion last year.
“Our investments in price cuts have kept us competitive in a tough market, and we have achieved solid growth in operating income,” says Group CEO Runar Hollevik in Norgesgruppen.
“At the same time, we are able to make our operations more efficient in order to handle the increased costs, which is crucial in the times we are in when everything costs more,” he adds.
Investments in price cuts over a longer period weakened the operating margin by 0.4 percentage points from 3.4 percent to 3.0 percent in the first half of 2023, the company writes.
“The competition for customers in food markets is fierce, but taken as a whole, Norgesgruppen wins customers. Increased costs for important input factors such as goods, packaging and rent also affect results in the first half of the year. So far in 2023, the extraordinary cost increases from the suppliers have also continued.”
Featured image: Kiwi shop in Ă…l, Norway (NordenBladet)
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