Norway Group increases profits more than food prices are rising – Adresseavisen

The case is updated.

With chains Menu, Kiwi, Spar and Joker is matgiganten visible for Norwegian consumers. In connection with the publication of half-year results Thursday, it is mentioned that there is heavy competition and intense price pressure in the market.

– The intensity of competition has increased over time, which benefits the consumer good. Food prices rose 2.3 percent from June 2015 to June 2016. This is lower than the consumer price index, showing an increase of 3.7 percent over the same period, the company said in a statement.

Although competition is hard stuff Group still securing good margins overall. Operating profit ended with a margin of 5.8 percent, down from 6 percent in the same period last year. Still, the operating profit increased by 3.4 per cent to 2.24 billion.

– Norway Group expects continued strong battle for customers, seasonal price competition and increased price and margin pressure, which means that the strong price competition began in 2015 persists, the company said.