3i Group (LSE:III) delivered a solid second-quarter performance, with its majority-owned discount retailer Action maintaining positive like-for-like sales growth and helping lift the investment group’s net asset value despite adverse foreign exchange movements.
Action delivers double-digit revenue growth
Action recorded like-for-like sales growth of 3.6% during the second quarter, matching the growth achieved across the six months to 28 June. While this was below the 6.8% reported in the same period last year, the result came against a particularly strong comparative period and reflected improving trading in key markets including France and Germany.
Over the first half of the year, Action generated net sales of €8.35 billion, an increase of 13.8% year-on-year, while operating EBITDA rose 12.3% to €1.11 billion.
“Action continues its impressive growth trajectory with a very good result in its second quarter,” said Simon Borrows, CEO of 3i Group. “Since the announcement of our full year results, Action has seen good performance with strong growth in transactions driven by seasonal products and continued good sales in FMCG categories.”
Net asset value rises despite currency headwinds
3i Group’s net asset value per share increased to 3,131 pence as of 30 June, delivering a total return of 3% over the three-month period.
The company said performance was achieved despite a negative foreign exchange translation impact of £276 million, equivalent to 27 pence per share, demonstrating the resilience of its investment portfolio in a challenging currency environment.
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