Financial targets
Description: Good sales development and a strong market position are key factors in achieving and maintaining good profitability. The target is valid for the Group’s retail segments ICA Sweden, Rimi Baltic and Apotek Hjärtat.
Outcome 2021: Continued pandemic effects also impacted the markets in 2021, but to a lesser extent than the previous year. The growth rate in Sweden fell in the grocery retail market in general, although there was some growth, both in-store and online. The ICA stores grew at a slightly slower pace than the market. The markets in the three Baltic countries had relatively good growth in 2021. According to preliminary data, Rimi Baltic grew faster than the market overall for the region and faster than the market in all three countries.
Apotek Hjärtat also succeeded in achieving growth that was higher than the pharmacy market overall, as well as higher than market growth in physical pharmacies and online.
Description: The target level provides room for investments in the business and a return on invested capital, and is at a good level for the industry. The target is measured excluding items affecting comparability
Outcome 2021: The margin target was reached in 2021 and the operating margin remained at 4.6%, the same level as in 2020. The profit mix within the Group was slightly different in 2021 because ICA Sweden’s profit was somewhat lower, while operating profit improved in other segments. Rimi Baltic and Apotek Hjärtat, in particular, showed strong development.
Description: The target level indicates that the Group is using capital effectively. The target was changed at the beginning of 2019 due to accounting changes under IFRS 16. ICA Bank is not included in the calculation because banking legislation stipulates that its assets and liabilities are not available to the Group. Instead ICA Bank has a target for return on equity that is a more appropriate target for banking operations.
Outcome 2021: Return on capital employed remained at 9.2%, the same level as the previous year. The measure for both profit and capital remained unchanged compared with 2020.
Description: A good balance between earnings and borrowing gives the Company the freedom and ability to act, even in times of recession.
Outcome 2021: At 1.8, the outcome is well below the target level. The level is the same as the previous year. EBITDA was SEK 267 million higher than in 2020, while net debt increased by around SEK 1 billion, mainly due to changes in lease liabilities. Net debt excluding lease liabilities was SEK 224 lower than the previous year.
