First half sales grow as profit declines at S Group

Date : 29 August 2013

Finnish retailer S Group has revealed its first half trading results, with sales increasing by 1.4% to over €5.5bn, as profit declines by 30% to €60.6m.

Performance in supermarkets and agriculture contributed to overall growth

The supermarket trade, which represents the largest share of S Group’s total retail sales saw sales increase by 3.9% to €3.8bn. 14 new store openings contributed to sales growth in this area, bringing the total number of supermarkets to 931. Sales also increased in the agricultural trade by 5.0% to €87.3m.

Strong growth outside domestic market

Grocery sales outside Finland increased by 29.6% to €247.1m. This year, one new Prisma outlet has opened in Talinn, Estonia, with plans to open three new stores in St Petersburg in the second half of the year.

Performance declined in other areas

Sales fell in other areas of the Company with declines across:

- Service station stores and fuel (-0.3% to €885.8m)
- Travel industry and hospitality (-2.3% to €378.7m)
- Automotive trade and accessories (-17.5% to €236.2m)
- Department stores and speciality stores (-6.0% to €152.5m)

Performance good considering economic situation

Commenting on performance, CEO Kuisma Niemela said "Considering the general economic situation, the first half of the year was reasonably good for the S Group. The recession was, of course, felt throughout the operations of S Group, but developments such as the slight increase in grocery trade and the mild sales decrease in other businesses mean that compared to the general trends in these fields, we have done well".