By Anna Ringstrom

STOCKHOLM (Reuters) -Swedish fashion group H&M drew a line under the pandemic on Friday, reporting a bigger than expected jump in quarterly profit and hiking investments with the aim of doubling sales by 2030.

After the retailer announced that it will double its investments to reach 10 billion Swedish crowns ($1.1 billion), shares in second-largest clothing retailer in the world jumped 5% during early trading.

It said that spending will be centered on technology, supply chain and renewable energy.

Helena Helmersson CEO stated that “we ended the year strong, with sales returning to the level before the pandemic” and with better profitability than in previous years.

We can now focus again on growth because we have reverted to normal with strong financial positions and high profitability.

Pretax profit in September-November – H&M’s fiscal fourth quarter – leapt 64% from a year earlier to 6.00 billion crowns ($640 million). Refinitiv’s analysts polled had an average of 5.43 trillion crowns profit.

“The strong result for the quarter is mainly a result of well-received collections with more full-price sales, lower mark-downs and good cost control,” H&M said in a statement.

According to the company, recent technological and supply chain improvements have helped reduce disruptions in product supply.

Comparatively to the fourth quarter prior to pandemic, profit increased 43%.

H&M, like its biggest rival Inditex Zara’s owner, (MC:), is recovering from the pandemic despite challenges in the supply chain.

A 6.50 crown per share ordinary dividend was proposed by the Swedish group. It would be divided into two equal instalments and a 3-billion crown share buyback program.

H&M said it now aimed to double sales by 2030 compared with 2021 sales while at the same time halve its carbon footprint, and to reach an operating margin above 10% by 2024.

The operating margin was 7.7% and sales reached 199 billion crowns in 2021. Pretax profit was 14.3 billion crowns (compared to analysts’ average forecast of 13.5billion).

To help lower its carbon impact, H&M said it would no longer take supplies that use coal-based fuels.

($1 = 9.4194 Swedish Crowns