3i sees strong sales growth at Action

29th Jun 2023 08:36

(Sharecast News) - Dutch discounter Action is on track to deliver another strong quarter of profit growth, owner 3i Group said on Thursday.

In a brief trading update ahead of its annual general meeting, the blue chip investment firm said the retailer had seen "very strong" sales growth in the year to date, with like-for-like sales up 22% by the end of week 25.

It has also opened 84 stores, up on the 75 opened in the same period a year previously. Action currently has around 2,300 shops across mainland Europe.

As a result, 3i said Action - its largest portfolio company - was "set for another good quarter of profit growth", with a cash balance in excess of €660m.

It continued: "Action's strategy to deliver an outstanding quality customer offering at the lowest price remains the company's top priority and continues to draw high customer footfall across all its geographies."

Looking to the rest of its private equity portfolio, 3i acknowledged that lower customer demand and inflationary pressures were continuing to affect some companies.

However, overall the UK firm said: "Despite the macroeconomic headwinds, we remain confident that the 3i active management approach will build consistent value creation across the portfolio over the longer term."