Case Studies

Woozle's Long Idea in ICA Gruppen Generates 30% Investment Returns for Clients

Our long/buy idea in ICA Gruppen made more than 30% investment returns for clients after the Swedish Grocer reported Better than Expected Q2 Results


On 15th August 2019, ICA Gruppen reported stronger than expected Q2 results that beat sell side expectations for the quarter sending the Swedish grocery shares up nearly 10% as of 2pm London time. 

 

For the three month period ending June 2019, the company reported an increase of 4.3% in consolidated net sales to SEK 30.5 billion. The results highlighted stronger than anticipated sales across the ICA Swedish banner which reported first-half sales growth of 4.3% to SEK 58.6 billion. 

 

Management's trading statement highlighted strong sales growth trends at ICA Sweden in Q2; in-line with market trading but beating expectations

 

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FT data shows ICA Gruppen shares have risen more than 30% in the last 3 months

 

Woozle's team of primary research uncovered evidence of continued positive YOY fundamental trends at ICA Sweden banners in Q2 with most guiding for MSD percentage gains in YOY revenue trends, growing popularity of the online sales channel generally beating targets, stronger than anticipated traffic and average ticket trends, solid sales of newly introduced ICA Selection own-brand ranges, and less significant impact from margin pressures and logistics costs. 

 

Woozle reiterated our long/buy Idea on ICA Gruppen on 7th August ahead of Q2 earnings

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Clients were able to initiate or scale their short positions with plenty of time to capitalise on the more than 30% rise in ICA Gruppen's share price in the weeks leading up to the results.

 

 

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